If only the Trojans had a due diligence program.

Before doing business with any third party it is important to carry out a robust due diligence screening that is not only important for complying with regulators, but will greatly assist your business assess its risk exposure and put in place a risk – focused plan to address any identified or anticipated risks throughout the entire relationship cycle.

Before doing business with any third party it is important to carry out a robust due diligence screening that is not only important for complying with regulators, but will greatly assist your business assess its risk exposure and put in place a risk – focused plan to address any identified or anticipated risks throughout the entire relationship cycle.

• Ownership structure, including Ultimate Beneficial Owners
• Registration status and country of incorporation or registration
• Potential or actual conflicts of interest
• Existence of a compliance regime e.g. policies on fraud and corruption
• Any politically exposed persons
• References to vouch for their compliance reputation

The information availed is then subjected to a thorough due diligence screening which could potentially unearth red flags.

A red flag does not necessarily mean that the business cannot engage with the third party. It simply places an obligation on the business to put in place a containment measure(s) to control the risk.

It is a legal imperative to document the red flag and the decision – making process that clears a red flag to ensure a smooth conversation with the regulators.

This is just the first step and there should be oversight and continuous monitoring to govern the lifecycle management of third parties.

At Ethica, we develop customised Due Diligence Policies and the all-so-important Questionnaire that ensure the third party avails all the information needed for a thorough cross-check against all important watch lists.

Our on-demand proprietary software kicks in to-

1. At Ethica, we develop customised Due Diligence Policies and the all-so-important Questionnaire that ensure the third party avails all the information needed for a thorough cross-check against all important watch lists.
2. Provide a detailed report on that and detect potential red flags
3. Assess the severity of the risk exposure and recommend mitigating measures
4. Assign an inherent and residual risk score for the screened entity

Enjoy our outsourced Due Diligence Screening for individuals, entities and transactions