Trace certification is a process confirming that a third-party entity has undergone a rigorous due diligence review based on international standards, but it does not guarantee that a company is free from compliance risks. Not all red flags will preclude certification, as the context of each risk varies by industry and company. Trace's reviews are collaborative and must be approached with an understanding that ongoing investigations or negative media reports may prevent certification.

1. Working with TRACE Certified Entities:
Understanding What TRACEcertification
Does and Doesn’t Mean
The term “certification,” when discussing compliance credentials, can result in confusion.
Certification, defined generally, is the process of publicly attesting or confirming that a
standardized process has been completed or that specified requirements have been
met. TRACEcertification seeks to do exactly that – confirm that a third party entity has
completed a rigorous due diligence process based on international standards. It does
not mean that a company will never pose any compliance risk. An entity can never be
certified “risk free”.
What is TRACE Certifying?
Certification by TRACE means that a company has completed a comprehensive due diligence process
administered by TRACE.
TRACEcertification candidates are required to provide written consent agreeing to participate in the review
process. By providing this consent, the candidate affirms is has the authority to disclose all of the information
and documents requested throughout the review and that the necessary consent was obtained from all parties
involved in the review.
TRACEcertification is a voluntary process by which TRACE grants recognition to an entity or individual who
successfully completes the review. It is important to note that certification by TRACE does not mean that a
company has been cleared of all red flags. Each TRACE certificate explicitly states that it is not a guarantee
against past or potential wrongdoing by the certified entity or a guarantee against potential liability, and goes
on to explain that a summary of red flags identified during the TRACEcertification review is included at the front
of the report.
CONTACT: TRACEcertification Team | certification@TRACEinternational.org | +1 410.990.0076 | www.TRACEinternational.org
Why Don’t all Red Flags Preclude TRACEcertification?
A red flag can be any issue that raises a compliance concern. Because risk factors vary by company, not all red
flags will preclude TRACEcertification. Ownership of a consulting company by the Minister of Defense, even if
legal under local law, will require more careful consideration by an aerospace and defense company than by a
medical device company. Filing for bankruptcy three years ago will preclude a relationship by some companies,
but not others. Companies seeking to do business with TRACE Certified entities must request and read the
underlying reports in the context of all facts known to them, their business and their appetite for risk.

2. CONTACT: TRACEcertification Team | certification@TRACEinternational.org | +1 410.990.0076 | www.TRACEinternational.org
Is the information in a TRACEcertification Report Verified by Credentialing Body?
TRACEcertification due diligence reviews are collaborative. TRACE’s team of multilingual due diligence analysts
contact the candidates to obtain necessary information and clarifications and generate a thorough, up-to-date
review. TRACEcertification reports are then verified and administered by TRACE.
About TRACE
TRACE International and TRACE Incorporated are two distinct entities with a common mission to advance
commercial transparency worldwide by supporting the compliance efforts of multinational companies and their
third party intermediaries. TRACE International is a non-profit business association that pools resources to
provide members with anti-bribery compliance support while TRACE Incorporated offers both members and non-
members customizable risk-based due diligence, anti-bribery training and advisory services. Working alongside
one another, TRACE International and TRACE Incorporated offer an end-to-end, cost-effective and innovative
solution for anti-bribery and third party compliance.
For more information, visit www.TRACEinternational.org. Follow TRACE:
What Does Preclude TRACEcertification?
The TRACEcertification process is demanding and requires candidates to disclose key business, financial
and compliance information. Candidates who are unwilling or unable to furnish supporting documentation
or otherwise meet the review requirements will not be certified by TRACE. Unresolvable red flags, such as
an ongoing investigation, credible negative media reports or inclusion on a sanctions list, will also preclude
certification.
Using TRACEcertification Reports Wisely
33 Ask for a copy of the full report;
the one-page certificate of completion
is not sufficient.
33 Review the executive summary at the front
for a discussion of any red flags.
33 Contact TRACE for a security review if you
are concerned the report has been altered.
33 Alert us if you believe the entity has
misrepresented any information.
33
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