Europe

Systematic analysis revealed that the company had a relatively negative public profile in relation to the Covid-19 pandemic and that, in the past, it had been involved in certain troubling issues, including being subject to sanctions in relation to irregularities in the marketing of drugs. Compared to its competitors, the company had  a rather negative reputation in the media, but it emerged that it had been the subject of an adverse media campaign which steered information and the market to the advantage of certain pharmaceutical brands to the detriment of the company.

Our risk assessment enabled the client to take a risk-based and informed decision in relation to the business partnership.

Our investigation revealed that the European companies were part of a Russian group whose ownership structure included offshore companies and the ultimate beneficial owner was not disclosed. A series of other red flags emerged including a recent investigation by financial authorities into allegations of tax evasion. The investigation also revealed that the parent company had been under the scrutiny of Russian regulatory authorities on several occasions. No charges had ever been made against the Russian company. However, sources agreed that the company’s “clean record” was influenced by the close relationship of one of the managers  with a highly influential PEP.

Based on the results, the client was able to adopt appropriate risk-based decisions to mitigate the risks linked to the investment.