International Due Diligence Services

In this day and age, increased connectivity and internationalisation of markets have led to goods, services and money flow relatively smoothly from one corner of the globe to another. To take advantage of growth opportunities in a global market, savvy business leaders and company directors know that they must rely on intelligence backed by a robust international due diligence framework.

Indeed, international due diligence lies at the heart of a mutually-beneficial global partnership, as it aims to strengthen trustworthiness between partners from different countries. It is through trust and respect that companies can work together to enhance competitiveness, spur innovations, and further contribute to the interaction and integration of economies around the world.

What is international due diligence?

International due diligence is a process of verifying a foreign party (could be a company or a person) and assessing the local economic and political landscape in a jurisdiction unfamiliar to you. International due diligence is carried out prior to you entering into agreements or making investments. The scope and depth involved in the assessment are proportional to the value of the agreement or the risk of the investment.

International due diligence helps to reveal:

• Who the foreign partner or company really is
• How the local economic and political landscape can impact your organisation
• Any cultural sensitivities your company should be aware of
• Other potential risks pertaining to local illegal activity or corruption

International due diligence is instrumental if you are considering investing in a high-risk country, one that is vulnerable to corruption, money laundering and terrorist financing. If your company has rushed to invest in a high-risk country without adequate due diligence, it may get caught up in the country’s unique political policies, causing significant problems and monetary losses.

Know your customer or KYC

The term “know your customer”, often abbreviated to KYC, is a practice used by global and local banks and financial institutions to verify the identity of their customers, assess their suitability, and determine potential risks particularly in the areas of fraud, money laundering, or terrorist financing. In the UK, it is governed by the Money Laundering Regulations 2017.

Although KYC remains very much a practice used by banks and financial institutions to comply with the anti-money laundering regulations, companies of all sizes can implement these identification procedures and benefit from them too, given the world is now a connected place and international trades are unavoidable. Failing to vet your international partners or foreign customers can unknowingly get your company involved with fraudsters or criminals who do not possess healthy regard to your business interests, resulting in serious legal trouble.

An extension of KYC is KYCC which stands for Know Your Customer’s Customer. This process seeks to identify the relationship between a customer and their customer.

Beware of foreign legislation

Companies operating internationally must be fully aware of local compliance issues too. As foreign countries implement their own equivalent anti-corruption legal policies, it can be all too easy for companies operating in foreign territories to fall foul of the latest practices and requirements. One example is the growing stringency of the US Patriot Act and the growing list of foreign companies and individuals blacklisted by the US government for possible links to terrorist organisations and money laundering. Regular and effective due diligence and local intelligence can keep you abreast of the changing landscape.

Every business is unique

With every business comes a unique set of challenges, particularly on the international business scene. Blackhawk Intelligence’s international due diligence processes are designed to reflect and embrace this. Each investigation we carry out is tailored to your business and quoted on a case by case basis.

Client confidentiality is entrenched in everything we do, and our ISO-27001 and ISO-9001 certifications show our unrivalled commitment to data integrity and quality management.

Call +44 (0)20 8108 9317 and speak to our international due diligence team today.