International Due Diligence Services
Knowing who you do business with is a sensible business practice and in some countries, financial institutions demand their customers to provide due diligence information as part of the standard practice too.
International due diligence is critical to companies with complex business and supply chains spanning multiple countries and legal jurisdictions. The globalisation of business increasingly demands stringent attention to the potential for corrupt practices and money laundering. For example in the UK, companies are required by law to ensure that their business dealings and standard business practices are audited and are in compliance with the Proceeds of Crime Act 2002.
What is international due diligence?
International due diligence, as the term suggests, is a process of identifying local information that is not publicly available in another country. The local information can consist of:
- Verification of a foreign partner or a client
- Local political impact
- Local economic landscape
- Potential risks pertaining to local illegal activity or corruption
It must be noted that the scope of international due diligence continues to evolve. For instance, most business activities are now carried out online, a digital realm where geographical borders do not exist, and also one that fraudsters lurk and criminals could turn dirty money into cryptocurrency easily. Accordingly, international due diligence specialists may incorporate elements of digital forensics to assist with the case.
Regardless it is carried out online or offline, the fundamental objective of international due diligence is to seek commercial clarity to tangled financial and political situations in this complex world that we live and do business in. The process of international due diligence can cover the following areas:
What our process covers
- International company checks
- Director background checks
- Financial investigations
- Hidden asset investigations
- Local Compliance Investigations
- Forensic Analysis
- Hidden Corporate Structures
- Undisclosed Liabilities
- Histories of potentially corrupt business dealings
- Financial profile and analysis
- On and offshore investigations
- Local and international links and activities between companies, their principles and associates
Once our team has completed our international due diligence activities, the next step is to analyse the data. From that we compile a due diligence report that will enable you to make well-informed business decisions concerning potential new business dealings or renewing existing ones.
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 even terrorist finance. 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 utilise and benefit from it 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’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.
We use a variety of tools and techniques in our investigations, and we can quickly assemble a multidiscipline team comprising due diligence, digital forensics and even surveillance to meet your needs. We always work ethically and within the boundaries of local laws and legal frameworks.
Client confidentiality is entrenched in everything we do, and you can see that we are certified as ISO-27001 and ISO-9001 compliant. You can be confident that your identity will never be disclosed and the targets you seek to verify remain unaware.
Global due diligence reach
With offices in London and Tel Aviv, trusted resources and operatives in Europe, the US, Southeast Asia and the Far East, we are well placed to provide fast and efficient local intelligence gathering and international investigations of any nature.