Due diligence is an essential component of a comprehensive compliance plan that http://www.getvdrtips.net protects organizations from the devastating consequences of financial crimes. But it’s not without its risk, particularly in areas like Latin America, where unique situations require customized strategies.
To mitigate these risks, you must keep track of any developments in the elements that may affect the due diligence of an organization. These include changes to local regulations and geopolitical developments, economic trends or even the emergence of new techniques and technologies. Staying up-to-date with these trends will ensure that your due diligence processes are up to the task.
If, for instance you identify a person as PEP (politically exposed person) It could be necessary to conduct additional due diligence. This usually involves checking additional documentation and verification methods to determine the source of their wealth and funds as well as finding their ultimate beneficial owners (UBO) and analyzing their transactions patterns to find possible money laundering and other illicit activities.
Depending on the level of risk, you may be able to conduct thorough reviews of their current business operations, including the type and nature of any third-party partnerships. This could include examining contractual agreements to determine whether they pose a risk to compliance. In addition, you may want to consider engaging an expert third-party due to diligence service to help you with your own review processes. These services typically have access to more comprehensive databases, and can provide assistance in conducting a thorough risk assessment.