Enhanced Due Diligence
KeyNorth Group can help you understand the risk in your business and third-party relationships and comply with the laws that govern your business transactions.
Our enhanced due diligence research gives you detailed integrity and advanced background checks on any person or entity you’re considering hiring or doing business with, helping you to safeguard your reputation, uncover potentially costly risks and comply with regulatory requirements.
WHEN YOU NEED TO KNOW MORE
Examples of circumstances in which enhanced due diligence inquiries may be conducted include:
- To ensure compliance with anti-money laundering laws such as the Canadian Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the UK Proceeds of Crime Act 2002, and the anti-money laundering provisions of the US Bank Secrecy Act
- To identify beneficial owners of funds, assets or business interests
- For appointments of key persons, such as board members or C-level executives, for whom standard employment background checks are not sufficient
- To comply with anti-bribery laws such as the Canadian Corruption of Foreign Public Officials Act, the UK Bribery Act, the US Foreign Corrupt Practices Act or domestic regulations relating to bribery
- To comply with fraud risk assessment procedures under certain accounting standards
- As a standard risk management procedure when selecting a partner, supplier or distributor or when financing a venture
WHAT WE DO
The team at KeyNorth Risk Insights conducts enhanced due diligence inquiries across the globe, leveraging our investigative research expertise and ability to do on-the-ground verification.
Choose from our predetermined risk profile programs to know the cost requirements and scope of work up front. These programs include:
Basic Corporate Verification
This service is used to validate the existence of a corporation. It is ideally suited for audits or vendor verification process.
Channel Partner Due Diligence
Channel partner due diligence provides companies with background information on sales or manufacturing partners to help them determine if they are the kinds of organizations that the company would like to do business with.
Enhanced Due Diligence Level 1
When you are entering into a transaction with an individual or entity it is important to know about their background. This service includes a review of public record and publicly available information about the entity of interest. It is typically used by investors, companies considering new suppliers and in know your customer/know your client situations.
Enhanced Due Diligence Level 2
Building upon the research conducted in EDD Level 1 this type of due diligence includes further verification procedures, including but not limited to interviews and site visits.
Enhanced Due Diligence Level 3 with Beneficial Ownership
This level of investigation includes a review of public record and publicly available information, a thorough review of client’s records, other verification processes as described in Level 2 and it also focuses on determining the beneficial ownership of assets or companies.
View or download our brochure to learn more about our enhanced due diligence offerings.
THE COST OF DUE DILIGENCE LAPSES
Serious Fraud and Economic Offences
The UK’s Serious Fraud Office handles investigations relating to anti-corruption and bribery, among other serious economic offences. The volume of cases isn’t high, but cases are very complex, and the office has a very high conviction rate for cases they pursue. According to their 2017 annual report, 13 out of 15 defendants were convicted during the year, resulting in conviction rates of 86.7% by defendant and 100% by case.
Blocking of Assets and Restrictions on Trade
As of 2021, the US Department of Treasury has 36 programs in place relating to trade restrictions and the blocking of assets. Doing business with individuals and businesses subject to these sanctions can have serious consequences.
Securities Law Violations
The Canadian Securities Administrators’ website publishes notices of discipline against individuals and companies as far back as 1987. This should be consulted before investing with any investment firm or individual advisor.