What is enhanced due diligence?
Enhanced due diligence – that is, heightened investigative measures that take standard due diligence research up a notch – is necessary when the individuals or entities you’re doing business with pose a greater-than-normal risk to your organisation. It goes beyond traditional financial checks to view third-party risks across PESTLE (political, economic, sociocultural, technological, legal and environmental) categories to better protect your corporate interests.
This higher level of due diligence aims to mitigate the increased risk and ensure your business’ ongoing regulatory compliance. A high-risk scenario generally involves situations in which there’s increased opportunity, likelihood, or both for money laundering, terrorist financing or other financial crimes through a product or service.
Enhanced due diligence practices rely on comprehensive data, the right technology and robust analytics. Together, these can help you uncover concealed risks and relationships.
Through enhanced due diligence, you can gain a more in-depth understanding of the individuals and entities with whom you’re dealing, including customers, third-party suppliers and business partners.
Ultimately, enhanced due diligence helps companies safeguard interests concerning:
- mergers and acquisitions
- supply chain continuity and integrity
- compliance with sanctions, anti-money laundering (AML) and anti-bribery and corruption (ABC) laws
Due Diligence Reports
Running detailed due-diligence reports can provide you with a clear, verifiable and auditable trail of your due-diligence efforts. With them, you can demonstrate to regulators that your organisation is conducting the appropriate level of due diligence and provide proof of compliance.
What’s more, these reports also help you improve decision-making, as they give you a more complete picture of the companies and individuals with whom you’re doing business. You will be able to more effectively manage supplier, AML and ABC compliance risk as part of your overall risk-management strategy.
Thorough due-diligence reports can detail:
- company background checks
- executive screening
- ABC assessments
- screening of vendors, suppliers, customers and other third parties involved with your business
- ethics and corporate social responsibility checks
- financial crime investigations, such as embezzlement, fraud, money laundering or other fiscal irregularities
- and more
Nexis Diligence+™ enables you to perform enhanced due diligence checks and comprehensive research to investigate and monitor third parties, customers and other entities with whom you do business. This simple and intuitive due diligence tool also helps you gather all the regulatory data you need to ensure your ongoing compliance.
With Nexis Diligence+, you have access to an unparalleled collection of global news and information all in one place, including:
- more than 150 premium business information databases
- millions of public and private company profiles covering both developed and emerging markets
- politically exposed person (PEP) lists, international sanctions lists and watchlists
- more than 26,000 current news sources from newspapers, blogs, and newswires, as well as an archive going back 40 years
- the LexisNexis® database of international court cases and decisions
- risk-analysis reports
- more than 500 biographical sources and executive profiles
What’s more, with the Diligence+ built-in report builder, you can produce tailored time- and date-stamped reports to demonstrate your ongoing compliance efforts if you undergo a regulatory audit.
Ultimately, with comprehensive information on the people and companies you’re dealing with, you can:
- minimise risk and safeguard your business
- remain compliant
- improve your decision-making power for critical business decisions
- grow your business with confidence
As today’s risk and regulatory environment continues to evolve, its essential to have an also-evolving risk-management and compliance process in place. CleverKYC combines third-party screening, risk assessment, and ongoing monitoring and case management. The software is a powerful regulatory compliance tool that is agile enough to adapt and keep pace with changing due-diligence practices.
CleverKYC draws on both internal and external data sources so you can pinpoint, evaluate and manage your exposure to risk. Importantly, the software allows you to constantly assess, monitor and measure your risk so you can scale up or scale down your due diligence efforts as necessity dictates.