Due diligence is an essential component of a comprehensive compliance program that protects organizations from the devastating effects of financial crime. But it’s not without its risk, particularly in areas like Latin America, where unique circumstances require specialized strategies.
To reduce the risk To reduce the risk, it is vital to keep track of the ever-changing factors that could impact the due diligence process of an organization. These could include changes in local regulations, economic trends, or geopolitical events. These factors will aid in ensuring that your due diligence processes are up-to-date.
If, for example you identify a person as PEP (politically exposed person), it may be necessary to conduct additional due diligence. This usually means checking additional documentation and verification methods to establish the source of their wealth and funds as well as in determining their ultimate beneficial owners (UBO) and analyzing their transactions to determine the possibility of money laundering or other illegal activities.
Depending on the risk, you might also want to conduct detailed examinations of More Help their current operations, including the type and nature of any third-party relationships. You might also wish to examine contractual obligations to determine if they pose a risk of non-compliance. You might also consider engaging a third-party due diligence expert to aid in your review process. These services often offer access to more comprehensive databases and have the expertise to conduct an accurate risk assessment.
0 Comments