ethiXbase Due Diligence will enable you to recognize and understand threats presented by the corporations and individuals with whom you conduct business.
We do this by meeting:
The United States Department of Justice provides a concise view on what the DOJ expects from those corporations and individuals covered by the Act. It states that ‘U.S. companies are encouraged to exercise due diligence and to take all necessary precautions to ensure that they have formed a business relationship with reputable and qualified partners and representatives.’ They continue that due diligence may include investigating potential foreign representatives and joint venture partners to determine if they are properly qualified, have personal or professional ties to the government and to determine their reputation. The DOJ also lists ‘red flags’ for business partners, these include unusual payment patterns or financial arrangements, a history of corruption in the country, an apparent lack of qualification or resources on the part of the partner to perform the services offered, and where the partner has been recommended by a foreign official.
According to the UK’s Serious Fraud Office, initial due diligence on partners should consist of a comprehensive questionnaire for potential partners detailing ownership, management, existing partnerships and relevent judicial or regulatory findings. Obtaining a clear breakdown of the services offered including costs, commissions and fees. Subsequent due diligence should consist of undertaking research, including internet searches, of the prospective agents and, if a corporate body, of every person identified as having a degree of control over its affairs. The importance of conducting enquiries with the relevant authorities in the country where the agent operates to verify the information received in the questionnaire is stressed.
The risks of not following best practice are very high.
Without a comprehensive, consistent and auditable ‘Know Your Client’ (KYC) program in place, the risks posed by not complying with legislation and regulations are severe.
ethiXbase Due Diligence represents Best Practice for KYC and AML compliance by assisting financial institutions to comply with international anti-money laundering legislation by clearly demonstrating a risk – based and highly auditable approach to AML due diligence.
In a competitive global marketplace, most companies are searching for new opportunities in emerging markets. Emerging markets present fresh challenges. Corruption, weak rule of law leading to unenforceable contracts, organized crime, political exposure, terrorist financing and money laundering are common threats that have to be assessed and protected against. The best defence is to know the background of your prospective business partners by undertaking comprehensive, consistent and auditable due diligence.
It’s not just good business practice, it’s also the law. Legislation with international reach such the FCPA and the UK Bribery Act require you to know with whom you are doing business. This is evidenced by the emerging trend of successor liability actions brought by US regulators under the FCPA.
ethiXbase Due Diligence provides legal and discreet due diligence services with all reports comprehensive and current. Please Note that all the information in our reports is legally obtained.
Identifying hidden assets.
- Ascertaining a track record of involvement in disputes, legal issues and litigation on the part of a potential litigant.
- Uncovering previously unknown corporate interests or affiliations on the part of a litigant.
- Interviewing confidential sources for background information pertinent to a case.
- Investigating links and associations between Subjects.
We will work with you to determine the specific requirements of your case and deliver a fixed cost, timely report providing answers for your particular questions.