In today's complex business environment, understanding your customers is more crucial than ever. Effective market research not only helps combat delinquency and fraud but also ensures compliance with regulatory standards.
Commercial investigation therefore poses a great challenge for organizations. They not only face cumbersome processes but also encounter many difficulties in finding official documents that reflect commercial relationships, simplifying complex corporate structures.
In fact, uncovering corporate structures plays a key role in regulations related to the prevention of money laundering and terrorist financing, thanks to the identification of the real owner and the control measures applicable to "persons with public responsibility." This regulation aims to identify who controls a company, apply appropriate controls to help prevent financial crimes, and at the same time, protect the economic system.
Article 14.2 of Spanish Law 10/2010 of April 28 on the prevention of money laundering and terrorist financing considers persons with public responsibility to be those individuals who perform or have performed important public functions, offering a detailed description in this regard. The regulation establishes that obligated entities must apply enhanced due diligence measures in business relationships or transactions with these individuals.
On the other hand, and according to the law, in Spain, companies, foundations, associations, and other legal entities must identify, store, and keep updated information on who the real owners are.
The regulation establishes the obligation to identify the real owner and adopt measures proportional to the level of risk before starting business relationships. This applies to certain operations that exceed a specific amount or present particular risk factors. Additionally, it is mandatory to document the actions taken to identify the natural person who ultimately owns or controls, directly or indirectly, more than 25% of the capital or voting rights of the entity. It should also include those who exercise control of the entity by other means. If it is not possible to determine the real owner, this circumstance must also be duly recorded.
Related to the fulfillment of these obligations, the creation of the Central Register of Real Ownership (RCTIR in Spanish) is planned, whose purpose is to collect and publicize current information on real ownership related to all Spanish legal entities and trust-type trusts, as well as analogous entities or structures without legal personality that operate in Spain. Obligated entities may consult this register as necessary, as well as other entities that can demonstrate a legitimate interest in knowing this information.
However, this register is not yet operational, so obligated entities can access Real Ownership information through the Real Ownership databases of the Commercial Register or the General Council of Notaries to comply with this obligation until the Central Register of Real Ownership is enabled.
Another challenge companies often face is non-payment. It doesn't matter about the size of the company or the sector in which it operates. This is confirmed by data from the latest study by the Multisectoral Platform Against Default in Spain: the percentage of non-payments relative to the total turnover of companies was 5.1% in 2023.
In addition to economic losses, it is important to remember that these scenarios involve more complex and prolonged processes, which can significantly reduce business efficiency.
To address these needs, an approach that combines Business Intelligence with Consumer Intelligence is required. And it must be supported by the most innovative technology on the market. That is, only the best tools and the best talent will help us fight fraud and default.
This blended or combined approach should incorporate risk assessment models with broad coverage and predictive capacity, economic-financial analysis services to understand the true relationships between companies, and technology that facilitates commercial investigation and regulatory compliance.
Commercial investigation allows reducing both regulatory and reputational risks while reducing the real risk of non-payment and fraud. This information should not be limited to our country but should offer international coverage to understand the structures in any country.
On the other hand, for this strategy to be effective, scoring should be included to evaluate the probability of non-payment of individuals or legal entities in the coming months. Thanks to advanced analytics from multiple sources, the decision-making process is automated and simplified.
Of course, the most innovative technologies will be necessary to fight fraud and default, such as Artificial Intelligence. Generative AI allows the extraction, processing, and analysis of large amounts of business and commercial information, offering a detailed picture of the companies that constitute societies.
Only through an integrated approach that combines business and consumer data, supported by the latest technological innovations, can reduce fraud levels and the number of defaults.
In summary, understanding your customers through effective market research and leveraging advanced data analytics is essential to mitigate risks and ensure compliance.
At Experian, we are committed to providing innovative solutions that empower businesses to thrive.
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 By Antonio Jiménez - Product Manager – Experian | axesor, Spain