Due diligence is one of the most important elements of a comprehensive compliance program protecting organizations from the ravaging consequences of financial crimes. It's not without risks especially in areas like Latin America where unique dynamics require specific strategies.
To minimize the risks it is crucial to be aware of changing factors that could affect the due diligence of an organisation. These may include changes in local regulations, economic trends or geopolitical events. Being up-to-date with these factors will ensure that your due diligence procedures are up to date and effective.
If, for instance you identify a person as PEP (politically exposed person) It could be necessary to perform more due diligence. This usually get vdr tips net means reviewing additional documentation and verification methods to determine the source of their wealth as well as their funds as well as identifying their ultimate beneficial owners (UBO) and analysing their transaction patterns to identify possible money laundering and other illegal activities.
Based on the risk, you may also want to conduct detailed assessments of their current business operations, including the type and nature of any relationships with third parties. This could include looking at contractual commitments to assess whether they pose a risk to compliance. You may also want to consider hiring an outside due diligence expert to aid your review process. These services can often provide access to more extensive databases as well as the expertise needed to conduct an extensive risk assessment.