Due diligence of counterparties or business partners in the UK

Companies that are interested in conducting due diligence procedures with respect to an individual or company should pay attention to recent situations that have undermined the reputation of world-famous companies due to espionage and surveillance of former employees and informants.

In the first case, a senior leader illegally hired private investigators to spy on a former colleague because of personal matters. In the second case, the company head monitored the personal information of the informant after he left the company.

These, and many other situations that had a broad coverage in the media, indicate that companies should be more careful when choosing those from whom they plan to order due diligence, because the end result can be both the tarnished reputation of your business and the personal reputation of those in charge.

For more information, we recommend ordering legal advice on conducting a due diligence check of partners in the UK and other jurisdictions.

The Right Due Diligence Specialist

Reliability testing is a very widely used term meaning different things for different people at different times. In the world of compliance, it usually means the need to get more information about a person or company before making contact with them.

In order not to be mistaken in choosing a specialist from whom you want to receive legal assistance in conducting due diligence, you will need to ask yourself the following questions:

1. How knowledgeable is the one with whom you want to check the reliability of your business partners with your help?
2. Does the specialist offer any surveillance or tracking services?
3. Listing his strengths, does he mention the possibility of working as a private investigator?
4. Does the auditor follow the law when receiving and providing you with the information necessary to make the right decisions?

Due diligence specialists have legal, ethical, moral and regulatory obligations to ensure that verification of the financial viability of counterparties or business partners is carried out within the framework of the law.

Company reputation and due diligence

If you are interested in a security check in the UK or any other jurisdiction, remember that reputation is the largest asset any entity or individual has.

Spoiled reputation can lead to numerous consequences, including financial losses, boycotts of products or even the closure of a business.

Regulators are becoming tougher in the fight against financial crime. Now, these are not just fines imposed on companies. The consequences will be felt not only at the company level, but also at the individual level. In an effort to stop financial crime, senior officials who are responsible for compliance are increasingly facing the threat of imprisonment.

Incidentally, the UK is considered the most active issuer of anti-money laundering and KYC fines in Europe, accounting for near a quarter of all fines issued in Europe.

What else should you know when doing due diligence?

The essence of the due diligence procedure includes the selection of the right specialist who will help to check the reliability of contractors or business partners.

If you need the help of lawyers in conducting due diligence in the UK, and you are faced with the need to choose, we recommend that you remember 3 simple rules:

• Only work with experienced lawyers who adequately understand your risks and the importance of compliance. For example, you can order a security check from IQ Decision UK experts;
• Do not order due diligence services from licensed private investigators, surveillance and surveillance providers, or self-employed entrepreneurs. All of them are highly likely to engage in illegal activities;
• Only cooperate with those lawyers who are able to provide you with data and business intelligence that can be presented in court. You can learn more about this by registering for an individual consultation on conducting due diligence in the UK from IQ Decision UK specialists.
   

Findings

Companies that require legal assistance in conducting due diligence of counterparties or partners should cooperate with a specialist who offers a wide range of solutions, regardless of the chosen industry, as well as the country of the client.