CSR Mercuria 2019 - Flipbook - Page 50
DUE DILIGENCE
Overview of KYC
As one of the largest traders in physical commodities, Mercuria has a reputation for the
strong, consistent manner in which it conducts
the logistics of its business. Coupled with this is
our ability to work collaboratively with our customers and partners.
Key to these effective partnerships is our insistence on a prudent “Know-Your-Counterparty”
(KYC) evaluation prior to execution of any contract or engagement in formal business dealings. In so doing, we seek to take a measured
and conservative approach to our risk management. Our KYC and screening procedures aim to
highlight prospective counterparties that might
pose any risk to our business.
Our KYC evaluation is multi-faceted, designed
to understand our counterparty’s commercial
strength, compliance standing, and extending to
incorporate our own sense of ethics into our assessment. Mercuria continually reviews its KYC
methodology to ensure that it remains up to date
with developing international standards. We are
increasingly utilizing technology to review, monitor, identify and flag high-risk counterparties and
activities faster and more accurately.
Similarly, Mercuria prudently follows a program
to conduct appropriate Due Diligence prior to
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entering any investments, acquisitions or joint
ventures.
With Mercuria’s worldwide business activities,
we recognize the challenges that can arise in
sourcing materials in or near to areas affected
by conflict and / or other governance issues. In
this regard Mercuria has implemented procedures to conduct various degrees of enhanced
due diligence in all its business dealings in or
around these jurisdictions. In particular, Mercuria seeks to regularly monitor its commodity’s
supply chain to help ensure that Mercuria in no
way contributes to human rights abuses or violence or exploitation in conflict affected areas.
Furthermore, within this framework, Mercuria
applies its due diligence to assure that any counterparties we may work with are not the subject
of legal sanctions.
Mercuria’s KYC process ensures that we fulfill
our duty to support the UNGPs by identifying,
preventing and mitigating any human rights
breeches that may have already occurred or are
under investigation.
KYC Procedures
In all of its business dealings, Mercuria carefully
considers not only our counterparties but also
the contractors and service providers we utilize
to help us to conduct our business activities.
For all of our contractors, Mercuria looks into
their general HSE policies, particularly with regard to:
