Know Your Vendor: Fighting Fraud the Smart Way

The UAE is the eighth most cyber-attacked country in the Middle East and Africa region. With attacks becoming increasingly complex, understanding the nature of current threats is pivotal to their prevention.

Although treasurers are preoccupied with the effects of the Covid-19 pandemic, everyday challenges still have to be met. With the average global treasury team reportedly spending more than one day each week dealing with know your customer (KYC) requirements, compliance remains a significant pain point for treasurers worldwide.

Currency volatility in Africa is being fuelled by unprecedented economic shifts in global markets. Given that most African economies have fragile economic fundamentals, weak growth and high fiscal risks could hinder their ability to benefit from the currently on-going global rate cutting cycle.

Issues such as late payments can negatively affect the relationship between the treasurer and the supplier. However, when these types of scenarios are perceived as opportunities rather than risks, both parties are able to benefit.

South Africa’s major corporates seem to be unconcerned about the impending transition from interbank offered rates to alternative reference rates. The scale and complexity of the transition should not be underestimated by treasurers, who must ensure their business is well prepared to avoid significant disruption.

The coronavirus (Covid-19) is the latest black swan to blight the financial markets. But it’s not only black swans that treasurers need to recognise the importance of – grey and green swans are equally deserving of attention.