In a competitive global marketplace, companies search for new opportunities in emerging markets. These economies present different challenges and risks – many of them cultural and part of the way people do business. Issues of bribery and corruption in such markets, along with meeting requirements under the US Foreign Corrupt Practices Act (FCPA) and the recently passed UK Bribery Act, mean that more companies are reviewing how best to ensure their operational practices and suppliers are vetted to the appropriate levels through due diligence exercises. Businesses operating abroad in complex markets can be at a severe disadvantage or vulnerability when it comes to understanding the manner in which those markets operate and how they can lower the potential impacts of the associated risks.
Traditional commercial due diligence looks at an entity’s projected performance in the context of the market and competitive landscape. However, commercial due diligence alone is often not sufficient in these emerging or frontier markets for making investment decisions where reliable information may be scarce. Source8’s due diligence service merges traditional commercial due diligence with a market-leading ability to reveal undisclosed risk on all key aspects of a business entity. Our investigations will cover areas such as an individual’s history of corruption and bribery, the reputation of the company, the history and associations of key directors and shareholders, any potential political exposure and any past law enforcement felonies.
This practice aims to confirm the identity, profile and activities of clients in order to allow actionable business decisions to be made. We seek with reasonable assurance, to verify and validate a third-party identity, understand and test the party’s profile, business and account activity and identify relevant adverse information to support actionable decisions to mitigate against financial, regulatory and reputational risk management and ensure regulatory compliance in the most complex of environments.