Due diligence is among the most important elements of a holistic compliance program safeguarding businesses from the devastating repercussions of financial criminals. It’s not without risks especially in areas like Latin America where unique dynamics require specific strategies.
To reduce the risk, it’s essential to keep track of the evolving factors that can affect the due diligence process of a company. These could include changes in local regulations, economic trends, or geopolitical events. Staying up-to-date with these factors will ensure that your due diligence procedures are up to the task.
If, for example, you identify an individual as a PEP (politically exposed person), it may be necessary to perform enhanced due diligence. This typically involves examining additional documents and methods to determine http://www.getvdrtips.net/best-stock-news-sources-to-follow the source of their wealth and money. It also includes identifying the ultimate beneficial owner (UBO) and studying their transaction patterns to detect money laundering or illegal activities.
Depending on the level of risk, you might also want to perform detailed checks on their current business operations. This includes the type and nature any third-party relationship. You might also wish to examine contractual commitments in order to determine whether they could pose the risk of non-compliance. Also, you might want to consider engaging a specialist third-party due diligence service to support your own review process. These services often offer access to more comprehensive databases and expertise in conducting an accurate risk assessment.