Due diligence is an essential element of a comprehensive compliance strategy that safeguards businesses from the devastating consequences of financial crimes. However, it’s not without risks, especially in regions such as Latin America, where unique dynamical circumstances demand specialized strategies.
To reduce these risks to reduce the risk, you should keep track of any changes in the factors that may affect the due diligence of your company. These factors could include changes in local regulations, economic trends or geopolitical events. These factors will aid in ensuring that your due-diligence procedures are current.
For example in the event that a risk assessment identifies an individual as a politically exposed person (PEP) then you might need to carry out enhanced due diligence on them. This typically entails conducting a thorough review of additional documentation and verification methods to determine the source of their wealth and funds, identifying their ultimate beneficial owners (UBO) and analyzing their transactions patterns to find potential money laundering or other illegal activities.
Depending on the level of risk, you may also consider conducting thorough 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 https://getvdrtips.net/how-does-an-organized-data-room-index-contribute-to-effective-document-structuring-and-accessibility-within-virtual-data-rooms/ determine whether they could pose a risk of non-compliance. Also, you might think about enlisting an expert third-party due to diligence service to help you with your own review process. These services usually provide access to more comprehensive databases and can assist in conducting an extensive risk assessment.