Due diligence is a crucial component of a comprehensive compliance strategy that protects organizations from the terrible consequences of financial crimes. However, it’s not without risks, especially in areas such as Latin America, where unique dynamical circumstances demand specialized strategies.
To mitigate these risks, you must keep track of any developments in the elements that could impact the due diligence process of an organisation. These may include changes to local regulations and geopolitical events, economic trends or even the rise of new methods VDR news and technologies. These factors will aid you in ensuring that your due diligence processes are current.
If, for instance, you identify an individual as a PEP (politically exposed person) it could be necessary to perform enhanced due diligence. This usually means checking additional documentation and verification methods to establish the source of their wealth and funds as well as the identification of their ultimate beneficial owners (UBO) and analysing their transactions patterns to find possible money laundering or other illegal activities.
Based on the level of risk, you may also consider conducting thorough assessments of their current business operations, including the type and nature of any relationships with third parties. This could include examining the contractual obligations to determine if they pose a risk to compliance. In addition, you may think about enlisting a specialist third-party due diligence service to help you with your own review processes. These companies typically have access to more comprehensive databases, and they can offer expertise in conducting an extensive risk assessment.