Latin America Due Diligence Risk Factors

Due diligence is among the most essential elements of a comprehensive compliance strategy safeguarding businesses from the devastating consequences data room index of financial criminals. It’s not without risk especially in areas like Latin America where unique dynamics require specialized strategies.

To minimize the risks It is essential to be aware of evolving factors that can affect the due diligence process of a company. These could include changes in local regulations, economic trends, or geopolitical events. These factors can aid in ensuring that your due diligence processes are up-to-date.

If, for instance you identify a person as PEP (politically exposed person) It could be necessary to conduct additional due diligence. This usually means reviewing additional documentation and verification methods to establish the source of their wealth and money and finding their ultimate beneficial owners (UBO) and analyzing their transactions to determine potential money laundering or other illicit activities.

Based on the degree of risk, you may be able to conduct thorough checks on their current business operations. This includes the nature and type of any third-party relationship. You might also want to examine contractual obligations to determine whether they could pose a risk of not being in compliance. In addition, you may consider involving a specialist third-party due diligence service to support your own review process. These services can often provide access to more extensive databases and expertise in conducting a thorough risk assessment.

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