A company may look established on paper and still present questions about its ownership, management, financial position, reputation or regulatory history. These matters are especially important when the relationship involves a significant contract, investment, acquisition, business partner or access to company funds and information.
Global Screenings provides third-party integrity due diligence for organizations that need a closer review before entering or continuing an important business relationship. The scope can cover the company, its directors, shareholders, executive management, business interests and other parties relevant to the transaction.
Due Diligence Before a Business Decision
Third-party due diligence helps an organization examine the information supplied by a customer, vendor, investment target, business partner or other counterparty. It can identify records and relationships that may require explanation before an agreement is signed or funds are committed.
The depth of the review should reflect the value of the transaction, the countries involved, the ownership structure and the potential financial, legal or reputational exposure.
Routine supplier onboarding may be supported through Vendor Screening. A higher-risk relationship, investment or transaction may require a broader integrity due diligence review.
KYC and Customer Due Diligence
Know Your Customer, or KYC, due diligence is commonly used to review the identity and credentials of a customer or counterparty. It is particularly relevant to financial institutions and organizations handling regulated or higher-value transactions.
A KYC-related review may consider:
- Company registration and current status
- Directors and shareholders
- Executive management
- Business address and operating presence
- Licences and permits
- Professional memberships
- Corporate affiliations
- Sanctions and watchlist exposure
- Politically exposed person connections
- Litigation and regulatory history
- Adverse media and reputation concerns
KYC is one part of a wider due diligence process. A company can be properly registered and still have financial, ownership, litigation or reputation issues that require closer examination.
Pre-Investment and Financial Due Diligence
An investor, lender, broker, buyer or legal adviser may require a more detailed review before an acquisition, merger, investment or major project proceeds.
Pre-investment due diligence can help examine the target company, its management, financial information, assets, liabilities, property interests, legal disputes and operating history.
Depending on the transaction and the information available, the review may include:
- Corporate registration documents
- Merger and acquisition documents or agreements included in the scope
- Licences and permits
- Intellectual property records
- Executive management checks
- Principal investments and project activities
- Assets and liabilities
- Revenue statements
- Credit and bankruptcy information
- Business and director tax records where available and authorized
- Accounts and audit reports
- Corporate annual general meeting reports
- Property ownership records
- Environmental assessment information included in the transaction materials
- Operational project information
The findings can support a wider investment or acquisition review, but they do not replace legal, financial, tax, environmental or valuation advice from the client’s professional advisers.
Corporate Ownership and Management Checks
Understanding who owns, controls and manages a company is an important part of integrity due diligence. A review may identify current and previous directors, shareholders, related businesses and other corporate interests available through the relevant records.
Ownership and management research may include:
- Directorship searches
- Shareholder searches
- Executive management background checks
- Capital structure and corporate qualification review
- Business affiliations
- Professional memberships
- Conflicts of interest
- Disqualification records
A complex corporate structure does not by itself indicate wrongdoing. The purpose of the review is to understand the relationships involved and identify information that may be relevant to the proposed transaction.
Litigation, Court and Regulatory Research
Current or previous litigation can provide useful context about a company, its owners or its management. The review may include available civil, criminal, regulatory and public records connected with the parties included in the scope.
Research may cover:
- Litigation and dispute checks
- Court and public record searches
- Criminal record checks where lawful and available
- Regulatory actions
- Disqualification records
- Judgments and other available legal records
The date, jurisdiction, identity match and current status of a matter are important. An allegation, pending case or similar-name record should not be presented as a confirmed adverse finding without supporting information.
Reputation and Local Media Research
A company’s public reputation may not be fully reflected in its corporate documents. Local and international media can provide information about disputes, regulatory attention, management conduct, business relationships and other events affecting the subject.
Where relevant, the review may include:
- Reputation checks
- Internet and media searches
- Local-language media research
- English summaries or translations of relevant local reporting
- Review of the source, date and status of reported allegations
More detailed reputation, ownership and asset research may also be conducted through Reputation Intelligence.
Site Visits and Physical Verification
A physical site visit may be useful where an organization needs to confirm that a business operates from the stated address or that an office, facility or project exists as described.
Depending on the location and agreed instructions, a site visit may record:
- The address visited
- Visible business name and signage
- The apparent type of premises
- Information provided by an available representative
- Other observations permitted within the agreed scope
A site visit reflects what could be observed at the time of attendance. It does not replace a technical, environmental, property or financial inspection.
Sanctions, PEP and Compliance Screening
Depending on the parties, countries and purpose of the transaction, a due diligence review may consider relevant sanctions, politically exposed person, anti-bribery, anti-money laundering and counter-terrorist financing information.
Reference frameworks and screening sources may include:
- UK Bribery Act
- United States Foreign Corrupt Practices Act
- Anti-money laundering requirements
- Countering the financing of terrorism requirements
- Politically exposed person screening
- Office of Foreign Assets Control sanctions lists
- UK Sanctions List
- United Nations Security Council Consolidated List
- Relevant European Union and Canadian sanctions sources
- World Bank ineligible firms and individuals
- Terrorism-related watchlists where relevant and available
- Trade control and blocked-person data
- Sarbanes-Oxley-related information where relevant to the assignment
The applicable requirements are not the same for every organization or transaction. These laws, lists and frameworks may provide reference points for a review, but their inclusion does not constitute legal advice or guarantee compliance.
Structured sanctions, PEP and watchlist searches may also be supported through Global Database Searches.
Using the Due Diligence Findings
The completed report can summarize information that was confirmed, matters that could not be verified and findings that may require further consideration.
A record should be assessed in context. Similar names, incomplete identifiers, old information and unresolved allegations can all affect the interpretation of a result.
Global Screenings provides research and findings from the agreed scope. Final decisions on investment, acquisition, contracting, compliance or continuation of a relationship remain with the client and its legal, financial, compliance and management teams.
International Coverage and Limitations
Corporate, court, financial, ownership and regulatory records vary by jurisdiction. Some countries provide searchable online records, while others require manual research through local registries, courts, authorities or other available sources.
Information may be restricted, incomplete, archived, unavailable or recorded under a different company or individual name. A search that returns no record does not necessarily prove that no relevant information exists.
The countries, entities, individuals, transaction type and areas of concern should therefore be identified before the expected due diligence coverage is confirmed.
