Uncertainty may be a constant. But it doesn’t have to define your field of play

A crucial process for businesses and investors when considering partnerships, investments, or expansions in foreign markets

KNOW YOUR CROSS-BORDER PARTNER

Our global team of researchers and extensive in-house expertise offer our clients – operating in international jurisdictions – comprehensive due diligence reports on current or potential partners, suppliers and other third-party entities or individuals.

We provide comprehensive assessment of the entity's local reputation and dealings, strength of sales network and fair views of corporate or manfacturing capabilities, anti-money laundering, anti-bribery and corruption, as well as any political exposure and government contracting.

APPROACHING DUE DILIGENCE

Effective international business partner due diligence requires that a company gather meaningful information, assess potential risk across the enterprise, and tailor risk mitigation actions accordingly. Among key questions a company should ask regarding international business partners:

  • Is this a “real” business partner with a business profile and is it experienced in the relevant industry?
  • Is the business partner owned by company employees, or do other potential conflicts of interest exist?
  • Does the business partner, or its principals, have a track record of bankruptcy or solvency issues that might threaten the supply chain?
  • Does the business partner, or its principals, have a history of serial litigation, criminal problems, counterfeiting, child labor, or product safety issues?
  • Is the business partner associated with organized crime, terrorist groups, money laundering, bribery, or corruption?
  • Is the business partner located in a country restricted by US law from receiving payment, or does the vendor appear on sanction and embargo lists such as that of the US Department of the Treasury’s Office of Foreign Assets Control (OFAC)?

EXPAND OPPORTUNITIES, ELIMINATE BAD ACTORS

Due diligence effort may lengthen the start-up time for a new third party relationship, but recent SEC and DOJ judgments have demonstrated that failing to do so can have considerable negative financial and operational repercussions for companies seeking to conduct business internationally. It is far better to proceed slowly, carefully, and thoroughly with any new business relationship.

Our solutions can be tailored for organizations of any size or industry. They include:

  • Company background: involves collecting information from entity, verifying data provided and registration information, and following up on "red flags",
  • Ownership & Management: including registered beneficial owners and complex or opaque ownership structures to assess influence and ultimate control over the entity,
  • Political Exposure involves screening to identify PEPs and any relationships with government officials, including public procurement,
  • Source of Wealth involves a detailed account of a subject's source of wealth, and relevant issues of concern, such as political or government connections, corruption, money laundering, tax evasion, terrorism financing, fraud and other serious financial crimes,
  • Knowledge and Compliance of anti-corruption laws, and the company's compliance regime and training efforts,
  • Disclosures & Litigations including any evidence of regulatory breaches, disciplinary actions and litigation that may present particular risks.