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World-Check Uncovered: Understanding the Database and Steps to Take If Listed
In almost every project we come across World-Check and we know that this database raises many questions. That is why we at Avagard Global have compiled a detailed guide to World-Check for our clients and partners. We decided to share it with you. Enjoy reading.
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World-Check is an online service used by major international banks and organizations to assess the risks of working with individuals and legal entities.
Inclusion in the database indicates a potentially heightened risk profile, possibly due to factors such as alleged involvement in corruption, money laundering, sanctions violations, criminal records, political connections, or suspected ties to terrorism. However, being listed doesn't automatically imply criminal activity. But first, let's take a closer look.
Inclusion in the database indicates a potentially heightened risk profile, possibly due to factors such as alleged involvement in corruption, money laundering, sanctions violations, criminal records, political connections, or suspected ties to terrorism. However, being listed doesn't automatically imply criminal activity. But first, let's take a closer look.
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Contact us to see if your name is in the World-Check, Dow Jones, or LexisNexis databases. Our experts will conduct a comprehensive audit of your profile and advise on mitigating compliance risks.
Why do most banks worldwide use World-Check?
The September 11, 2001 terrorist attacks in the United States exposed a critical vulnerability in the financial system. The ensuing investigation revealed that terrorists had used Riggs Bank to launder money, highlighting a failure in the bank's client screening processes. The institution's security service was obligated to vet its clients, but this crucial step was neglected.
Investigators discovered a weak system for assessing client reliability, revealing serious shortcomings in the bank's compliance procedures. Riggs Bank was fined $25 million, but the repercussions didn't end there.
The bank faced further accusations of concealing the financial affairs of Augusto Pinochet, the former Chilean dictator. These scandals severely damaged the bank's reputation, ultimately leading to its demise. In 2005, Riggs Bank was acquired by a competitor. This case vividly illustrates how neglecting thorough client screening can lead to significant financial and reputational damage, even the collapse of a long-standing institution.
Unsurprisingly, this period saw a surge in the adoption of international compliance risk management services, offering a convenient and efficient way to vet individuals and legal entities before establishing a business relationship.
World-Check quickly emerged as a leader in this field. Major banks and financial organizations widely adopted Refinitiv World-Check for their compliance procedures. Government agencies and large commercial firms followed suit, recognizing the importance of due diligence in mitigating risks associated with clients and counterparties. It became clear that neglecting compliance could result in substantial financial losses, reputational harm, and ultimately, business failure.
Investigators discovered a weak system for assessing client reliability, revealing serious shortcomings in the bank's compliance procedures. Riggs Bank was fined $25 million, but the repercussions didn't end there.
The bank faced further accusations of concealing the financial affairs of Augusto Pinochet, the former Chilean dictator. These scandals severely damaged the bank's reputation, ultimately leading to its demise. In 2005, Riggs Bank was acquired by a competitor. This case vividly illustrates how neglecting thorough client screening can lead to significant financial and reputational damage, even the collapse of a long-standing institution.
Unsurprisingly, this period saw a surge in the adoption of international compliance risk management services, offering a convenient and efficient way to vet individuals and legal entities before establishing a business relationship.
World-Check quickly emerged as a leader in this field. Major banks and financial organizations widely adopted Refinitiv World-Check for their compliance procedures. Government agencies and large commercial firms followed suit, recognizing the importance of due diligence in mitigating risks associated with clients and counterparties. It became clear that neglecting compliance could result in substantial financial losses, reputational harm, and ultimately, business failure.
History of World-Check
World-Check was founded in 1999-2000 by Laura Aboli and David Leppan, initially as a service for bank employees aimed at mitigating financial crime risks. Today, it's widely used across various industries for counterparty due diligence.
The service attracted the attention of Thomson Reuters, which acquired it in 2011. However, in 2018, Thomson Reuters divested World-Check to Refinitiv, a major provider of global financial market data.
An interesting, albeit concerning, fact: World-Check suffered a data breach in 2016, compromising the information of 2.2 million "high-risk individuals" and entities.
World-Check gained attracted additional attention around 2010, following the Magnitsky case. The lists included information on 60 Russian citizens believed by the U.S. government to be involved in Sergei Magnitsky's death and the theft of state budget funds. These individuals were classified as PEPs (Politically Exposed Persons).
The concept of PEPs emerged in the late 20th century, triggered by the case of Nigerian dictator Sani Abacha, who embezzled approximately $4 billion from his country and transferred the funds to Europe. After his death, the new government sought to recover the stolen assets, leading to increased scrutiny of individuals holding high-ranking government positions and the associated corruption risks.
The service attracted the attention of Thomson Reuters, which acquired it in 2011. However, in 2018, Thomson Reuters divested World-Check to Refinitiv, a major provider of global financial market data.
An interesting, albeit concerning, fact: World-Check suffered a data breach in 2016, compromising the information of 2.2 million "high-risk individuals" and entities.
World-Check gained attracted additional attention around 2010, following the Magnitsky case. The lists included information on 60 Russian citizens believed by the U.S. government to be involved in Sergei Magnitsky's death and the theft of state budget funds. These individuals were classified as PEPs (Politically Exposed Persons).
The concept of PEPs emerged in the late 20th century, triggered by the case of Nigerian dictator Sani Abacha, who embezzled approximately $4 billion from his country and transferred the funds to Europe. After his death, the new government sought to recover the stolen assets, leading to increased scrutiny of individuals holding high-ranking government positions and the associated corruption risks.
World-Check: more than just a criminal database
While some view Refinitiv World-Check as a database solely for financial criminals—individuals involved in money laundering or the financing of illegal activities like terrorism—the reality is both more nuanced and, in some ways, simpler.
Inclusion in the database doesn't necessarily require proven criminal activity. It's often enough to belong to a category deemed to have a higher risk profile for potential involvement in crimes. For instance, individuals associated with politics and government are frequently included under the category of PEPs (Politically Exposed Persons). While not all PEPs in the database have engaged in illegal activities, their positions within the government system are considered to present opportunities for abuse of power, potentially leading to corruption and money laundering. To illustrate, here are examples of the data included in World-Check:
Inclusion in the database doesn't necessarily require proven criminal activity. It's often enough to belong to a category deemed to have a higher risk profile for potential involvement in crimes. For instance, individuals associated with politics and government are frequently included under the category of PEPs (Politically Exposed Persons). While not all PEPs in the database have engaged in illegal activities, their positions within the government system are considered to present opportunities for abuse of power, potentially leading to corruption and money laundering. To illustrate, here are examples of the data included in World-Check:
- PEPs: Deputies, political party leaders, certain categories of officials, top managers of state-owned corporations, etc.
- Individuals closely associated with PEPs: Relatives, confidants, friends, partners, etc.
- Individuals and organizations on sanctions lists.
- Individuals and organizations associated with those on sanctions lists.
- Negative media reports.
- Individuals involved in criminal cases and their associates.
- Enterprises with state participation.
If you hold a high-ranking position in a state-owned enterprise, have connections to government officials, conduct business with sanctioned entities, or have family ties to sanctioned individuals, you are likely in the database and should verify your World-Check status.
Given the unprecedented sanctions pressure on Russia and the significant state involvement in its economy, Russian residents face a heightened risk of being included in World-Check. Therefore, it's crucial to check your World-Check status before engaging in international activities, such as pursuing overseas deals, establishing a company, or applying for residency abroad. This proactive step allows you to assess potential complications and take appropriate measures in advance.
How does being listed in World-Check affect you?
Although regulators don't mandate the use of World-Check for banks, and the service's creators emphasize its role as a tool to aid, not dictate, decisions, the database carries significant weight. Being listed in World-Check can lead to a considerably longer and more complex verification process, with potentially serious consequences, including:
X Refusal of visas, temporary residence permits, permanent residency, or citizenship
X Denial of banking services
X Rejection by foreign counterparties
X Difficulties in purchasing real estate abroad
X Refusal of visas, temporary residence permits, permanent residency, or citizenship
X Denial of banking services
X Rejection by foreign counterparties
X Difficulties in purchasing real estate abroad
Due to Russia's classification as a high-risk jurisdiction, a Russian citizen's presence in World-Check often results in an automatic refusal of service pending further investigation.
Therefore, in many cases, removing your data from World-Check is essential for international engagement. We'll discuss how to do this shortly. But first, let's examine the reliability of the information within the database.
How reliable is World-Check? The truth.
Refinitiv, the owner of World-Check, utilizes a variety of sources to ensure comprehensive information on individuals. These sources can be broadly categorized as follows:
Official
Not official
Data directly from government agencies, such as sanctions lists, law enforcement records, and official decrees.
Information from open sources, including media outlets, online platforms, and social networks.
A key challenge with Refinitiv World-Check is the potential unreliability of its unofficial sources. Competitors or tabloid media may publish biased articles, compromising materials, or scandalous news. Consequently, analysts may add individuals to World-Check who have done nothing wrong but have been caught up in a scandal or named as a witness in an investigation.
If you've been mentioned negatively in the media, even briefly, regarding compromising materials, legal proceedings, or business ties with sanctioned or state-owned companies, you're likely in World-Check and should verify your status.
The database gathers information in over 50 languages from more than 200 countries. World-Check representatives maintain that analysts conduct additional verification, including using OSINT (Open Source Intelligence) methods to gather data from publicly available sources. However, errors frequently occur.
Avagard Global case study
Our client was targeted by a smear campaign: competitors published false articles in sensationalist online media alleging his involvement in corruption schemes. Despite being entirely fabricated, these allegations led to his inclusion in World-Check, preventing him from obtaining a residence permit in another country.
To resolve the issue, we first removed the damaging content from open sources. We de-indexed some materials (removing links from search results using "right to be forgotten" requests) and suppressed the visibility of others by pushing them to the back pages of search results. We also created a positive online profile for the client by publishing accurate information about his activities in reputable media outlets. Following this, we prepared the necessary documentation and submitted a removal request to World-Check. Consequently, the records about the client were removed, and he subsequently secured his residence permit.
Our client was targeted by a smear campaign: competitors published false articles in sensationalist online media alleging his involvement in corruption schemes. Despite being entirely fabricated, these allegations led to his inclusion in World-Check, preventing him from obtaining a residence permit in another country.
To resolve the issue, we first removed the damaging content from open sources. We de-indexed some materials (removing links from search results using "right to be forgotten" requests) and suppressed the visibility of others by pushing them to the back pages of search results. We also created a positive online profile for the client by publishing accurate information about his activities in reputable media outlets. Following this, we prepared the necessary documentation and submitted a removal request to World-Check. Consequently, the records about the client were removed, and he subsequently secured his residence permit.
Another notable example is the case of Maajid Nawaz, head of the Quilliam Center for Combating Extremism. In 2016, he was mistakenly added to the World-Check list as a "terrorist," as reported by Vice. Nawaz threatened legal action, accusing the company of defamation.
Patrick Kerr, a company executive, responded with an apology and confirmed that Nawaz's profile would be removed. He reiterated that the service's purpose was to gather data on high-risk individuals to help organizations prevent financial crimes. Kerr added that inclusion on the list shouldn't be seen as inherently negative, but rather as a prompt to gather additional information on the individual. He also emphasized that data can be removed from Refinitiv World-Check, including adjustments to PEP status, if an error is proven.
Patrick Kerr, a company executive, responded with an apology and confirmed that Nawaz's profile would be removed. He reiterated that the service's purpose was to gather data on high-risk individuals to help organizations prevent financial crimes. Kerr added that inclusion on the list shouldn't be seen as inherently negative, but rather as a prompt to gather additional information on the individual. He also emphasized that data can be removed from Refinitiv World-Check, including adjustments to PEP status, if an error is proven.
How can i check my World-Check status?
Under the Personal Data Protection Act and related legislation, Refinitiv World-Check is obligated to provide individuals with information about their inclusion in the database. However, this information isn't provided automatically; you must submit a formal request to Refinitiv. The request typically takes 14 days to process.
If you need faster results, Avagard Global can help. We can expedite the World-Check verification process, providing you with results within one business day.
If you need faster results, Avagard Global can help. We can expedite the World-Check verification process, providing you with results within one business day.
I'm listed in World-Check: What are my next steps?
Each situation requires a tailored strategy. We recommend the following steps:
Step 1: Review our expert guide on removing information from World-Check.
Step 2: Consult with professionals. At Avagard Global, we have a proven track record of successfully removing and neutralizing materials that have been included in the database.
Step 1: Review our expert guide on removing information from World-Check.
Step 2: Consult with professionals. At Avagard Global, we have a proven track record of successfully removing and neutralizing materials that have been included in the database.