There has been a significant evolution in how Related Party (RP) and transactions with them are viewed and scrutinised in the corporate landscape. What was once considered a routine governance matter has transformed into a critical focus area for shareholders, regulators, and stakeholders alike.
The traditional approach of treating RPTs as standard board approval is no longer sufficient. Regulators and shareholders, particularly institutional investors, are deploying risk-based analytics and scrutiny to evaluate these relationships and transactions through multiple lenses to ensure that these are legitimate and that they haven't been used for fraudulent purposes.
While related-party transactions (RPTs) are not inherently problematic, they do raise concerns about the potential for conflicts of interest, fraud, siphoning-off, money laundering and corruption.
Some key considerations:
This document sheds light on:
Forensic lens on related parties and transactions
A forensic lens on related-party transactions (RPTs) helps uncover potential risks and provides guidance on mitigating these risks effectively
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