ALTERNATIVE FINANCE DUE DILIGENCE
Protect investors, borrowers, and platform authorization with two-sided due diligence.
Crowdfunding platforms and credit intermediaries operate between capital providers and borrowing businesses. A single fraudulent fundraiser, illicit investor, or coordinated wash-pledging ring can jeopardize platform regulatory authorization. Diliguard delivers comprehensive two-sided diligence, combining corporate KYB, live sanctions screening, and pledge telemetry into a unified compliance workspace.
Phoenix companies, hidden controllers, and fake demand put platforms at risk
Alternative finance teams face compliance challenges on both sides of every transaction. Unscrupulous borrowers use phoenix corporate entities to conceal past bankruptcies, while bad actors fabricate pledge volume to simulate artificial demand or move illicit funds across campaigns.
Relying on disconnected self-declarations and manual registry searches leaves platforms vulnerable to regulatory enforcement and investor litigation. Diliguard links corporate registries, executive histories, and payment telemetry to deliver audit-defensible diligence in seconds.
The Diliguard Standard
Three Pillars of Alternative Finance Diligence
1. Fundraiser & Borrower KYB
Verify the legal status, corporate filings, and beneficial ownership of campaign creators, corporate borrowers, and credit introducers.
- Query live corporate registries via Corporate KYB Checks.
- Uncover dissolved entities and phoenix histories via Executive Person Trace.
- Verify operational substance and official company filings.
2. Sanctions, PEP & Investor Screening
Screen significant investors, campaign backers, and institutional lenders against international sanctions lists and adverse news dockets.
- Screen names and aliases with AML & PEP Screening.
- Assess high-net-worth investor source of wealth context.
- Eliminate false alerts with multi-factor matching algorithms.
3. Campaign Telemetry & Wash Pledging
Detect simulated demand, circular pledge laundering, proxy networks, and coordinated accounts manipulating campaign metrics.
- Score pledge velocities with Transaction Risk Scoring.
- Uncover shared IP and device telemetry via IP Intelligence.
- Prevent multi-account collusion using Fraud Prevention Controls.
The Phoenix Fundraiser & Simulated Demand
A peer-to-peer business lending platform received a £3.5M debt campaign application from a manufacturing borrower. Within hours of launch, rapid high-value pledges flooded in from newly registered backer accounts.
Compliance officers submit the borrower entity and key pledgers into Diliguard for automated risk correlation.
Executive trace reveals the managing director previously ran two insolvent companies that defaulted on retail investors.
IP intelligence connects early high-volume pledger accounts directly to the borrower’s office network, proving wash pledges.
The platform cancels the campaign immediately and freezes disbursements, protecting retail investors from severe losses.
Frequently Asked Questions
Have questions regarding two-sided diligence, wash pledge detection, or investor protection?
Custom volume pricing and continuous campaign monitoring available.
Speak with our compliance teamWhy do crowdfunding platforms require two-sided due diligence?
Compliance risks can originate from fundraisers seeking capital (misrepresenting ownership or concealing insolvency) or from backers providing funds (using campaigns for money laundering or wash pledges). Diliguard addresses both sides.
How does Diliguard detect phoenix companies and repeat offenders?
Our executive person trace and registry checks link directors, shareholders, and registered office addresses to previously dissolved companies, unpaid debt judgements, and past insolvencies.
Can Diliguard identify simulated demand and self-funding wash pledges?
Yes. By cross-correlating payment velocities, IP network telemetry, and device fingerprints, Diliguard flags when pledges originate from common infrastructure or accounts connected to the campaign creator.
Does a PEP match automatically disqualify an investor or borrower?
No. Identifying a Politically Exposed Person allows compliance officers to trigger enhanced due diligence, verify legitimate source of funds, and obtain senior management sign-off with documented audit protection.
Can parties be re-screened during an active campaign?
Yes. Diliguard supports ongoing monitoring that alerts your compliance team if an active borrower, director, or major backer is added to a sanctions list or becomes subject to adverse legal actions before campaign closing.
How do we get started?
Create a free account at https://portal.diliguard.com/register or explore subscription options on our Pricing Page.
Make every campaign and credit relationship defensible
Verify ownership, screen connected parties, and expose coordinated funding before risk reaches investors.