Due diligence is a crucial element of a comprehensive compliance program that protects organizations from the terrible consequences of financial crimes. However, it's not without risk, particularly in areas such as Latin America, where unique situations require customized strategies.
To minimize the risks To reduce the risk, it is vital to keep track of the changing factors that could affect the due diligence process of an organization. These could include changes in local regulations, economic trends or geopolitical events. Staying up-to-date with these issues will ensure that your due diligence procedures are up to date and effective.
For example, if a risk assessment indicates that a person is politically exposed (PEP), you may need to carry out enhanced due diligence on them. This typically involves reviewing additional documentation and verification methods to determine the get vdr tips net source of their wealth and assets, finding their ultimate beneficial owners (UBO) and analyzing their transaction patterns to identify potential money laundering or other illicit activities.
Depending on the level of risk, you might also want to perform detailed examinations of their current business operations. This includes the type and nature any third-party relationship. You may also want to review contractual obligations in order to determine if they are a risk of non-compliance. Additionally, you may want to consider engaging a specialist third-party due diligence service to help you with your own review process. These companies typically have access to more comprehensive databases, and can provide expertise in conducting an extensive risk assessment.
