Due diligence is an essential element of a comprehensive compliance program that shields organizations from devastating consequences of financial crimes. But it’s not without its risks, especially in regions such as Latin America, where unique dynamics demand tailored strategies.
To limit the risks, it’s essential to be aware of ever-changing factors that could impact the due diligence of an organisation. These may include changes in local regulations, economic trends or geopolitical events. These factors will assist you in ensuring that your due diligence processes are up to date.
For instance when a risk assessment identifies an individual as a politically vulnerable person (PEP), you may have to perform more due diligence on them. This typically involves examining further documents and confirming methods to determine the source of their wealth www.getvdrtips.net/a-comprehensive-guide-to-selecting-the-perfect-boardroom-software and their source of funds. It also includes identifying the ultimate beneficial owner (UBO) and studying their transaction patterns to determine if they are involved in money laundering or illegal activities.
Based on the degree of risk, you may also consider conducting thorough examinations of their current business operations. This covers the nature and type of any third-party relationship. It is also possible to look over contractual commitments in order to determine whether they could pose a risk of not being in compliance. Finally, you might want to consider engaging an expert third-party due to diligence service to aid your own review procedures. These services typically have access to more extensive databases, and can provide assistance in conducting a thorough risk assessment.