How to Correct Information on Due-Diligence Databases

In addition to World-Check and Dow Jones Risk & Compliance, Creditreform and SCHUFA can also be used as databases for due diligence checks. These databases generally obtain their information from third-party sources and present it to the user in a person – or company-related form.

World-Check primarily provides data on legal violations in the financial sector, screenings against sanctions and PEP lists, information on links to terrorist activities and structured adverse media content, i.e. the search of news sources for adverse reports and news about companies and individuals.

This database contains information on

• compliance requirements,
• anti-money laundering and terrorist financing workflows,
• sanctions,
• governance,
• bribery and corruption, and
• international trade compliance.

Creditreform primarily provides information on the creditworthiness, financial structure, and environment of corporate customers, as well as credit checks on private individuals.

SCHUFA is the leading creditworthiness database in Germany. It offers comprehensive creditworthiness information on companies and individuals.

Negative, incorrect or incoherent entries in databases can cause significant damage to those affected. Individuals and companies with an entry of particular relevance are considered to be at risk and can be considerably restricted in their economic power to act. An entry on World-Check, in particular, has a considerable stigmatising effect. Entries on World-Check are often linked to accusations of terrorist activity and can, therefore, be massively damaging to a company’s reputation.

In 2013, a London mosque (Finsbury Park Mosque) was confronted with the closure of its bank accounts, which was ultimately due to the fact that the mosque was ascribed an increased risk on World-Check due to links to terrorist organisations. As a result of the registration, the mosque was also refused to open an account with numerous other banks. The mosque was ultimately able to successfully take action against the unfounded entry in World-Check and have the entry cancelled. This case shows how an entry in World-Check can damage an entity’s reputation and render it financially incapable of acting. It is, therefore, of the utmost importance to take immediate action against such an entry and request a deletion or correction.

Requests for deletion or correction of entries in the aforementioned databases must be submitted to the database operators. The first step is to request specific information about what is currently recorded in the respective database. In the event of a request for deletion or correction, the databases often require a comprehensive justification of the reasons why the entry should be deleted. We work closely with you to compile a well-founded and (data protection) legally sound list of all arguments in favour of deletion or correction.

Deleting an entry from a due diligence database such as World-Check is a complex procedure requiring legal expertise and strategic skill. Our law firm has the necessary experience to assist our clients effectively in such extreme situations. If you are affected by an inaccurate entry or are concerned about this, please do not hesitate to contact us. Our reputation management and data protection experts are here for you.