For the past 25 years I have been directly involved in Compliance and in conducting "Enhanced Due Diligence Intel" reports for Agencies, Corporations, Banks, Companies merging, Real Estate firms, Financial groups, etc., which usually involved anywhere from a six-page report to over 200 pages depending of how intense the report must be according to my clients' requests. A KYC (know your client) and/or a thorough background check is a necessary part of any profession because the credit company checks do not entail foreign or domestic intel, which exposes a potential client or customer.
Last week I was contacted by a close friend of mine who is a successful and professional realtor in Ontario and who had a major problem and issue recently due to a potential purchaser from the Middle East who had signed an offer to purchase a six (6) plex in the downtown core of Toronto with an excellent return; however, the purchaser was not successful and did not close. The real estate agent for the purchaser and also the real estate agent for the vendor conducted a credit check through the popular credit reporting agency in Canada, but never conducted an "Enhanced Due Diligence" report on the purchaser; however, a quick-witted Compliance Office at the bank using only a Generation One software did and realized that the purchaser was listed and had sanctions on OFAC.
Both agents and licensed brokers were disappointed and upset at the outcome, including time and expenses lost; such as, Appraisals, Financial Statements, and embarrassment at the banks. My friend asked me to conduct a check, which I did using, www.eddi-iq.com which is a Generation Three software and application and submitted to my friend a 2 page report on the purchaser including his background, involvement with OFAC and various groups in the Middle East. The purchaser had no problems entering Canada and had obtained a Visa from his country of residence in Europe and enjoyed his visit to Canada.
I then questioned my friend about the number of times and percentage of real estate purchases that do not successfully close once an offer is signed and he responded that over 32% (percentage) is the accurate figure usually because of financing, deposit not approved etc. My friend advised me that the agents nor him conduct any form of Due Diligence, because there are no regulations in Ontario forcing background checks and he relies on the Credit Reporting Group and the banks to do the work for him, unfortunately for his agents and him; time and expenses has been wasted, because of the lack of knowledge, experience and initiative.
A ten (10) minuted check on a Generation Two or Three software will prevent the heartache and disappointment for an aborted real estate transaction or even possible legal and/or criminal actions from Regulatory Bodies in Canada.
Do not become a professional that does "not speak; hear or see" the signs of a possible and potential purchaser who can embroil a realtor, mortgage professional, accountant and/or anyone in a situation that can cause financial loss or more.
* Here is an example of a simple report from www.eddi-iq.com - http://portal.eddi-iq.com/result/?betheme_s=David+Algernon+Joseph&searchtype=person
Chronicels of Monte Friesner - Financial Crime Analyst