FAQs

The Corporate Sustainability Reporting Directive applies to large public-interest entities operating in the European Union and non-European companies with a significant economic presence. Generally, listed companies, banks, insurance firms, and other regulated entities meeting designated size thresholds must globally comply by reporting on environmental, social, and governance issues to enhance transparency.

Certa is typically used by teams responsible for managing third party relationships and risk (such as procurement, compliance, legal, risk, InfoSec, ESG and sometimes finance). They use it to onboard vendors, run due diligence, manage risk and stay compliant with regulations. In most organizations, multiple departments use Certa together to collaborate on shared workflows and maintain a complete view of third party risk and compliance.

Certa’s AI is continuously trained on real-world risk scenarios to minimize false positives and negatives. The system prioritizes accuracy while allowing human oversight.

Certa follows strict data privacy and security protocols, ensuring only authorized users have access. Data is never shared without consent.

Currency Transaction Reports (CTRs) are required for cash transactions exceeding $10,000 within a single business day. Financial institutions must submit CTRs to the Financial Crimes Enforcement Network (FinCEN) to help detect and prevent money laundering, terrorist financing, and other illicit activities. This reporting obligation is part of the Bank Secrecy Act's compliance requirements.

Certa is designed to be modular and flexible, meaning you can add to or replace your existing third party risk and compliance technologies. Certa integrates seamlessly with over 130+ internal systems and external data providers to enhance your current processes.

The Lieferkettengesetz (LkSG) came into effect on January 1, 2023, marking a significant regulatory shift in corporate accountability. This law requires companies to exercise due diligence regarding human rights and environmental risks in their supply chains, ensuring greater transparency and compliance with international standards and enforcing responsible business practices globally.

Adopted by the European Union in 2022, the Corporate Sustainability Reporting Directive (CSRD) came into effect for fiscal years commencing on or after January 1, 2024. Its phased implementation will progressively obligate a broader range of companies to enhance sustainability reporting practices across Europe, reinforcing environmental, social, and governance standards.

Investing in supplier risk management tools often yields a high ROI by preventing costly disruptions, optimizing supply chain efficiency, enhancing compliance, and reducing financial losses. Tangible returns can be seen in lowered incident management costs, improved procurement strategies, and safeguarding of brand reputation which justify the initial investment.

Third-Party Risk Management (TPRM) tools identify various risks, including operational, financial, compliance, strategic, and reputational risks. They assess cybersecurity vulnerabilities, data privacy issues, regulatory non-compliance, supply chain disruptions, and vendor financial instability, ensuring organizations can proactively manage and mitigate potential threats from their third-party relationships effectively.

Certa manages risks across multiple categories, including: Regulatory Compliance (ABAC, KYC & AML, PEP, sanctions, etc.), Cybersecurity, Financial, ESG (Environmental, Social, Governance), & Operational

Vendor risk scoring tools include risk assessment questionnaires, third-party risk management software, cybersecurity ratings platforms, financial health analysis tools, compliance management systems, and threat intelligence services. These tools help organizations evaluate vendor reliability, security posture, financial stability, and compliance with regulatory requirements, ensuring informed decision-making and risk mitigation.

The CSRD requires companies to publish detailed sustainability disclosures, including material policies, processes and metrics addressing environmental, social, and governance risks. Firms must report on strategy, business model, performance, stakeholder engagement, due diligence, and governance structures, ensuring transparency, accountability, and comparability across European corporations. Robust frameworks facilitate uniform global reporting.

OFAC sanctions entities linked to threats against U.S. national security, foreign policy, or economy. These include governments, companies, and organizations involved in terrorism, narcotics trafficking, human rights abuses, cybercrime, or weapons proliferation. Sanctioned entities appear on OFAC’s Specially Designated Nationals (SDN) List, subjecting them to asset freezes and transaction prohibitions.

AI can automate compliance tasks such as data monitoring, regulatory reporting, risk assessment, document management, fraud detection, and policy enforcement. It can also streamline customer due diligence, transaction monitoring, and audit trail maintenance, ensuring adherence to legal standards while reducing manual effort and minimizing human error.

Under LkSG, businesses subject to comprehensive supply chain due diligence include large companies in Germany and abroad whose operations significantly impact human rights and environmental sustainability. Covered sectors span manufacturing, retail, agriculture, and extractive industries, with applicable obligations to companies directly or indirectly linked through complex international supply chains globally.

Numerous online and in-person training programs help companies understand LkSG requirements. Programs offered by legal experts, compliance consultants, and regulatory bodies provide instruction. They often include webinars, workshops, case studies, and interactive modules. These initiatives enable organizations to ensure supply chain transparency and adherence to sustainable practices under regulation effectively.

OFAC compliance scans transactions for potential violations involving individuals, organizations, or countries subject to economic sanctions. The Office of Foreign Assets Control (OFAC) primarily focuses on financial transactions related to terrorism, narcotics trafficking, weapons proliferation, and other illicit activities. These scans help ensure compliance with U.S. sanctions and safeguard the integrity of international financial systems.

Many training programs are available including online courses, webinars, workshops, and certification programs focused on the EU Corporate Sustainability Reporting Directive (CSRD). Providers like EFRAG, SASB, and independent organizations offer comprehensive training covering reporting standards, sustainability metrics, legal obligations, strategic integration, and stakeholder communication. Strengthening compliance and fostering sustainable leadership.

Tools and Software for LkSG compliance are available specifically designed for sustainability and supply chain tracking. They include specialized audit platforms, data analytics software, blockchain-based tracking solutions, integrated compliance management systems, risk assessment, supplier engagement, and reporting tools. These solutions streamline compliance monitoring and automate documentation for efficient LkSG adherence.