Global Screenings has published a new guide examining vendor due diligence before a business enters a new market or appoints an overseas supplier, distributor, agent or intermediary.
The publication focuses on practical questions that should be considered before a commercial relationship becomes difficult to reverse.
Understanding the Proposed Relationship
The guide explains why the review should begin with the services, value, access and responsibilities involved. A routine supplier does not usually present the same risk as a government-facing agent or strategic distributor.
Ownership and Control
Readers are encouraged to look beyond the trading name and identify the legal entity, directors, shareholders and available beneficial-ownership information.
- Company registration and status
- Parent and subsidiary entities
- Directors and officers
- Shareholders and beneficial owners
- Possible conflicts of interest
Sanctions, PEP and Reputation Review
The publication discusses screening the entity and relevant individuals against sanctions, watchlists, politically exposed person data and credible media sources. Possible matches should be reviewed against reliable identifiers.
Operational and Payment Risks
The guide also considers whether the vendor has the resources, licences and experience required, and whether payment or commission arrangements are commercially reasonable.
Documenting and Monitoring the Decision
Due diligence should record what was searched, findings, limitations and approval conditions. Higher-risk or longterm relationships may require periodic or event-driven review after onboarding.
Read Vendor Due Diligence Before Entering a New Market.
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Global Screenings supports Vendor Screening and Third-Party Integrity Due Diligence across relevant jurisdictions.
