Mercuria CSR Report 2021 - Flipbook - Page 28
our business activities. All of our procedures are based off of a risk assessment, higher risk jurisdictions
and activities and relationships where Mercuria has more control are subjected to enhanced scrutiny.
We have specific requirements and vetting procedures for vessels and product, as well as for specific
processes for vetting prospective storage facilities. We utilize independent laboratories, surveyors and
due diligence services to help with these processes in certain scenarios.
We utilize the services of a number of well-established Data Intelligence Companies in the commodities
industry to help with this process, namely; Dow Jones, WorldCheck, Polestar’s PurpleTRAC, Lloyds
Informa and Infospectrum. These companies provide us with necessary targeted and extensive
information on the maritime, shipping and commodities sectors, so we are equipped to make wellinformed timely decisions based on independent and verified data sources.
Mercuria is committed to continuously develop and improve our Due Diligence procedures. As such, we
regularly update and review our processes and our information sources to ensure that we always have
the most up to date and accurate information possible.
Learn more about KATON, our in-house central KYC database
KATON is Mercuria’s in-house central KYC database and multi-party workflow tool. Developed over
the course of the last two years by Mercuria’s IT division, under the guidance from the Mercuria KYC
& Compliance team, KATON is our primary database for verifying and recording information about
third parties. KATON allows us to utilize technology to review, monitor, identify and flag counterparties
and activities faster and more accurately. KATON has digitalized our KYC requirements which are set
according to our entity risk assessment matrix. KATON’s automated workflow ensures that all KYC
is completed consistently and accurately according to our high standards and requirements whilst
supporting real-time collaboration across internal stakeholders.
All potential new counterparties must go through Mercuria’s KYC due diligence process before any deals
can be agreed or any payments can be made or received, all payments are blocked prior to completion
and approval of KYC of the entity. As the business expands, KYC has become increasingly important. Our
new platform allows for real-time status updates improving communication throughout the business
and ensuring that all counterparties have met our criteria.
Not only is KATON crucial for real-time status updates, but it is also important for monitoring and
reviewing existing counterparties. Mercuria seeks to regularly monitor its supply chain to help ensure
that Mercuria in no way contributes to human rights abuses or violence or exploitation in conflict
affected areas. KATON was developed internally, allowing our KYC team to continually review its KYC
methodology to ensure that it remains up to date with developing international standards.
In an effort to continually improve our processes, we are currently building out KATON’s capabilities
to digitalize and enhance our business ethics and human rights due diligence processes. Mercuria
has completed, and continues to enhance as we move to more jurisdictions and business lines, a very
detailed risk assessment of ethical and human rights risks which allows us to ensure that we do not
come into contact with these risks in our day to day dealings.
Additionally KATON has become a crucial tool in our sanctions monitoring and enforcement programme.
Mercuria takes a very conservative approach to implementation of all sanction regimes and fully
complies with all sanction laws and regulations around the world. As sanctions regimes across the
globe have become more complex, such as introduction of sectoral sanctions regimes, Mercuria has
bolstered its systematic controls, training programmes and Compliance oversight of all activities.
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