he headline of this blog seems like a no-brainer for entrepreneurs, but if you think about it, you realize that in practice little is done with alerts, or notifications as we call them within Noctua.
If the alarm doesn’t go off in the morning, there are all kinds of consequences, including arriving late for work, delayed appointments and possible delays. This underlines the value of alerts or notifications built into the Noctua software. It keeps the organization sharp and therefore alert and active.
Of course, an organized Know Your Customer (“KYC”) process is still essential in addition to the alert function. An alert or notification is nothing more than giving the go-ahead for additional research. Thorough research is only possible if a qualitative process has been set up for this.
What are notifications or alerts within the Noctua software and where else can this be used? Three examples.
Example 1. Relationship management and ISO standards
ISO 27001 and 27002 have a separate chapter devoted to relationship management (customers and suppliers). Logical moments for customer or supplier contact are from the ISO standards, change of ownership, change of management, relocation or filing of inability to pay. In practice, however, this is often not noticed or noticed late and sometimes not at all.
“ISO relationship management alerts”
An alerting system can therefore be a very useful obligation within the ISO standard. An interesting example for an alert is for not filing annual accounts, while one is obliged to do so. This is indirectly included in the valuation of the creditworthiness of companies, but in many cases this is only seen when it is too late. Not filing the annual accounts or not filing them on time is often a signal that something is wrong. Time for the account manager to take action or, for example, to adjust the payment conditions with the customer.
Conclusion, having a software system with alerts on specific changes in the Chamber of Commerce is good for obtaining and maintaining an ISO standard and at the same time adds something useful to the business and protects it.
Example 2. Alerts for Industry Pension Funds
The Dutch industry pension funds (“IPF”) must report this to the Dutch UWV (UK: Jobcentre Plus Office) in the case of a bankrupt company and submit a claim for the pension contributions not paid by the employer. The importance? If the employer owes pension contributions to a pension provider on the basis of a pension agreement concluded with the employee, the pension contributions for no more than the year immediately preceding the date on which the employment contract was terminated by the trustee will be reimbursed by the Dutch UWV.
Setting an alert to the companies affiliated to the IPF prevents bankruptcy bypassing the management of the IPF and ensures an adequate response.
Example 3. Municipalities and money laundering
Criminals in the Netherlands do around € 13 billion of money laundry annually, according to research by Utrecht University. https://www.banken.nl/nieuws/22016/jaarlijks-wordt-13-miljard-witgewassen-in-nederland
The Promotion of Integrity Assessments by Public Administration Act (so-called Bibob legislation) was established in 2003. The aim in the Netherlands is for municipalities, provinces and ministries to assess the integrity of holders and / or applicants for permits and subsidies. For example, the permit for a catering facility is always checked by the municipality.
Alerts are essential here, in the event of changes of ownership it may be that criminal organizations take control of the company and thus enable money laundering, for example.
The Noctua software offers an active and dynamic setting of alerts within the software. We see two types of alerts: a dynamic and an active alert.
When performing a survey by the user of the software, a red sphere is added to one or more of the found entities. This means that certain conditions set within the software are met. There may be something wrong, the user is automatically alerted. This dynamic mechanism replaces many searches so that the researcher can conduct research efficiently.
An active alert has two variants:
- An alert is sent to one or more investigated entities and a signal is issued if there are changes in the structure of shareholders, management or address. This can optionally be linked to PeP (Politically Exposed Persons) and sanction lists.
- Some sources pass on their updates, these are captured by Noctua, matched to an investigation and that also leads to the sending of a signal.