AML & KYC Due Diligence

Engagement 
A private equity-backed global food distributor was facing significant monetary losses due to customers not paying for goods. The firm wanted to understand more about the cause of these unpaid debts and ultimately improve its approach to relationship vetting and risk management. 

Investigation 
Gryphon was engaged to perform an investigation into the distributor’s client relationships and internal processes. The team discovered a lack of formal due diligence and compliance procedures when onboarding customers. Several key clients were found to have weak financial histories yet had been granted credit terms without proper background checks or financial assessments. This gap in the company’s vetting process allowed clients to accumulate unpaid debts. 

Result 
Gryphon’s findings highlighted the critical importance of conducting thorough background investigations on current and prospective clients. The distributor implemented stronger due diligence procedures and tighter internal controls, which significantly reduced the risk of future financial losses. The private equity firm was able to protect its investment by ensuring more secure and reliable client relationships moving forward. 

Engagement
A global bank engaged Gryphon to conduct a background check on an attorney representing a high-profile popstar as part of onboarding a new private wealth account.

Investigation
Initial research revealed no major red flags about the attorney, originally from Argentina yet with extensive U.S. residency. However, during the investigation, Gryphon uncovered a brief reference to a Brazilian investigation involving the attorney. With the help of an in-house Portuguese speaker, the team expanded the search to Portuguese-language media. This led to the discovery that the attorney and three Peruvian partners were allegedly involved in laundering $150 million in the 1990s, for which Brazilian Federal Police had issued an arrest warrant. The attorney who regularly traveled internationally, was unable to be detained by the Brazilian police, prompting them to seek Interpol’s help.

Result
The attorney was ultimately arrested, and the bank ceased business with them, protecting its reputation and mitigating potential legal and financial risks.