Due diligence is among the most important elements of a comprehensive compliance plan protecting organizations from the devastating repercussions of financial fraud. However, it’s not without dangers, particularly in regions like Latin America, where unique circumstances require specialized strategies.
To reduce these risks to reduce the risk, you should keep track of any change in factors that could affect the due diligence of an organization. These include changes to local regulations as well as geopolitical events, economic trends or even the development of new techniques and technologies. Staying up-to-date with these factors will ensure that your due diligence procedures are fit for purpose.
If, for example you identify a person as a PEP (politically exposed person) It could be necessary to perform more due diligence. This usually means reviewing additional documentation and verification methods to determine the source of their wealth and money, the identification of their ultimate beneficial owners (UBO) and analysing their patterns of transactions to spot possible money laundering and other illegal activities.
Based on the degree of risk, you may also want to conduct detailed assessments of their current operations. This includes the type and nature any third-party relationship. You may also want to look over contractual commitments in order to determine if they pose a risk of not being in compliance. Finally, you might consider involving an expert third-party due diligence service to aid your own review process. These services typically provide access to more comprehensive databases and can assist http://www.getvdrtips.net/top-virtual-data-room-service-providers-2022 in conducting an exhaustive risk assessment.
