Due Diligence Investigations
“A company or institution does not want to fall foul of legislation such as the UK Proceeds of Crime Act, Terrorism Act or the USA Patriot Act”
What is Due Diligence?
Due diligence is carried out with a view of understanding the level of risk that an individual or firm might be exposed to. Risks may include: political, financial, legal or reputational damage.
Due diligence can be carried out on a potential commercial supplier or prior to a merger or acquisition.
A due diligence investigation should conclude in a report that can be used to make an informed decision. Businesses may be exposed to legal liabilities if they cannot demonstrate that they have acted in a proper manner in their business dealings and that they have been diligent.
Due Diligence Services
Business deals and relationships in today's global economy are increasingly complex; it is therefore necessary to obtain timely and accurate intelligence. For due diligence purposes, public information on a company and its principals is often insufficient, outdated or difficult to obtain.
Legal Governance, Risk Management, and Compliance
Since the introduction of the Sarbanes-Oxley Act of 2002 there has been a stringent legal requirement for all companies and financial institutions to combat money laundering and other financial crimes.
Know Your Customer
All companies are required by law to carry out full investigations in to their clients and manage the situation during all stages of the business relationship, i.e. initial contact, annual reviews of customer accounts and when client activity changes.
The financial crisis of 2006 has also shown that companies who regularly use due diligence as standard business practice are better protected against risks and ultimately losses.
On-going due diligence and regular checks of clients can and does protect your company and mitigate risks.
Under UK law a company director must be able to demonstrate to a court that all effort was made in carrying out due diligence and that this was in compliance with the Terrorism Act 2000, Proceeds of Crime Act 2002 and Money Laundering Regulations 2007.
Our Due Diligence Services
As we often cater for clients who have complex cases, our due diligence service is quoted for on a case-by-case basis after an initial review.
The due diligence process is likely to include:
- Potential Political Exposure
- Potential Reputational Damage
- On & Off-shore Financial Profile & Analysis
- Investigating Links, Associations & Activities
International Intelligence due diligence services thoroughly investigates any given target using various techniques. These include open source intelligence, forensic accounting and, where required, surveillance.
“Our aim is to uncover any hidden share structures, undisclosed liabilities or questionable financial dealings”
All due diligence intelligence is analysed to provide a full picture of the target company. A due diligence report based on the intelligence is submitted to our client, enabling them to make sound policy judgement before engaging in any major contracts or alliances.