What is due diligence and why is it important?
Organisations are required to apply reasonable care when undertaking a business activity with the aim to reduce the risks emanating from internal and external threats whilst protecting the interests of key stakeholders. As a result, such organisations may opt to carry out a due diligence check which is a form of an investigation that ranges from an assessment of the legal, economic, and financial position of an entity to a background analysis and the identification of possible links with different types of economic crime or reputational issues of a potential business partner, customers, suppliers, or relevant stakeholders.
Organisations may need to carry out due diligence due to a legal obligation such as the anti-money laundering and counter financing of terrorism regulations and as a risk management measure to reduce the risk of reputational loss or operational loss. Therefore, such procedure may be implemented by organisations across all industries including but not limited to financial services, pharmaceutical, gaming, insurance, real estate, and aviation.
As a result, Grant Thornton may assist its clients by providing the below services:
- assisting in the design of due diligence procedures and processes by taking into consideration legal obligations as well as good practice measures.
- undertaking customer due diligence measures in line with AML and CFT laws and standards. The measures also include the implementation of customer risk assessments, standard due diligence, simplified due diligence and enhanced due diligence.
- implementing an organisation’s due diligence measures on stakeholders such as suppliers and business partners by collecting and assessing relevant information and/or documents.
- undertaking background searches on legal entities and natural persons by using open sources.
- providing training to teams that handle due diligence procedures.
Grant Thornton also provides services that may improve the due diligence procedures within the business’ operations and procedures:
- Compliance audit services
- Internal audit services
- Transaction advisory services and due diligence.