Due diligence is one of the most essential elements of a comprehensive compliance plan protecting organizations from the ravaging consequences of financial crimes. It’s not completely free of risk especially in areas such as Latin America where unique dynamics require customized strategies.

To limit the risks to minimize the risks, you need to keep track of any change in factors that could affect the due diligence process of your organization. These factors might include changes to local regulations, geopolitical developments, economic trends or even the development of new methods and technologies. These factors can aid in ensuring that your due-diligence processes are current.

For instance in the event that a risk assessment identifies an individual as politically exposed (PEP) then you might have to perform more due diligence on them. This typically involves examining additional documents and verifying methods to determine the source of their wealth and funds. It also involves identifying the ultimate beneficial owner (UBO) and studying their transaction patterns to determine if they are involved in money laundering or illegal activities.

Based on the level of risk, you may also consider conducting thorough assessments go to this site of their current business operations, including the type and nature of any third-party partnerships. This could include looking at contracts to determine if they pose a compliance risk. Also, you might consider involving an expert third-party due-diligence service to aid your own review processes. These services can often provide access to more comprehensive databases and can assist in conducting an extensive risk assessment.