Firms need to ensure sufficient control over the conflicts clearing process in order to mitigate risk, adhering to due diligence standards before and during client activities. Proactive compliance with privacy, security, and business relationship conflict management mandates require ongoing, automated integration with businesses that monitor the various government and commercial sources for changes. Conflict compliancy is not found in a static, one-time query but in an ongoing, repeatable, and auditable process whereby firms can responsibly act to resolve identified conflicts by waiver or by disengagement.

Privacy — Avoiding conflicts of interest includes respecting jurisdictional mandates as outlined by government agencies and legal societies. Firms must adhere to the provisions of global privacy legislation in their conflict research. The European Union requires approval from registered data protection agency databases working in tandem with U.S. Safe Harbor, and personal privacy laws such as HIPAA and PIPEDA guide client operations.

Security Lists — Global legislation on anti-money laundering and the avoidance of known criminals as new clients continues to emerge, and firms are mandated to vet new and ongoing business opportunities against published lists of registered entities. These include the U.S. Treasury Department Office of Foreign Asset Control Specially Designated Nationals List (OFAC/SDN), the U.S.A. Patriot Act, the Canadian Government’s Office of the Superintendent of Financial Institutions (OSFI), and the UK Financial Services and Markets Act of 2000.