Enhanced Due Diligence Solutions by Strategic Acquisition Team

Safe investing with a thorough understanding of risk. Buyers must do extensive due diligence across an increasing range of risks to ensure success, from having the resources required to negotiate a best-in-class transaction to setting the path for a seamless integration or developing a new platform for future development. With the industry’s expansive perspective on risk, Strategic Acquisition Team brings together a highly skilled team of professionals from intellectual property, cyber security, M&A, insurance, and human resources to perform thorough due diligence and enhance transaction results.

Through the lifetime of third-party partnerships, from initial assessment, onboarding, continuing monitoring, renewal, or end of life, Strategic Acquisition Team  will centralize your third-party risk management systems and walk stakeholders through each stage of the process. We go beyond the typical supplier and third-party risk solutions’ check-box methodology by enabling you to design dynamic processes tailored to your company’s needs based on the risks significant to your suppliers and third parties. Our platform is also designed to be simple to connect with the vendor management and enterprise resource planning (ERP) solutions you already have in place. Our pre-built, defensive, risk-based third-party assessment workflow tool may be used by small and medium-sized enterprises that understand the need for third-party risk management. It is affordable, easy to install, and specially made for small, centralized teams.

To explore how the Strategic Acquisition Team  can provide you with more control over the process, enable you to make quicker, better choices while reducing risk, and lower third-party management expenses, contact us now.

Are You a High-Risk Company in Need of Enhanced Due Diligence? Hire the Services of Strategic Acquisition Team
Call Us at 843-671-4200 Today!

What is Enhanced Due Diligence Solutions?

According to a risk-based strategy, enhanced due diligence (EDD) entails looking into a client’s background more completely, necessitating the collection of a lot more information and proof. Therefore, EDD is vital for high-risk, wealthy consumers or those who engage in complicated or unique transactions since they run more severe risks. Despite efforts by governments, regulators, and financial institutions to preserve financial stability via new laws, enforcement measures, and increased cooperation, around $2 trillion in illegal cash flows through the global financial system annually. Understanding clients is essential for businesses aiming to stop money laundering and terrorist financing (ML/TF), and EDD is a comprehensive know-your-customer (KYC) approach that may assist.

What Does Enhanced Due Diligence Usually Require?

Every FATF (Financial Action Task Force) member must adopt customer due diligence (CDD) requirements as part of their domestic AML/CFT (Anti-Money Laundering / Combating the Financing of Terrorism) legislation. For new business partnerships, sporadic transactions, if there are suspicions of money laundering or terrorist funding, or if there is inaccurate paperwork, institutions should apply KYC/AML and all CDD safeguards. Instead of being a one-time need, monitoring should be continual.

In its CDD advice, the FATF analyzes money laundering concerns related to customers, countries, and products. Persons or circumstances that pose a higher risk may need more due diligence, such as:

  • An odd commercial arrangement, such as an inexplicable geographic distance between the company and the client
  • Customers who are not residents or who are affected by economic sanctions
  • Legal entities that serve as vehicles for retaining personal assets
  • Companies that have bearer shares or nominee shareholders
  • Cash-intensive businesses
  • The company’s beneficial ownership structure must be revised, simplified, and opaque
  • Nations without effective AML/CFT regimes
  • Countries with high levels of corruption or criminal activity, as well as those that are subject to sanctions or embargoes
  • Countries that engage in, sponsor, or support terrorism or host specifically listed terrorist groups
  • Private banking
  • Payments from unidentified or unrelated third parties, anonymous or non-face-to-face transactions, or commercial connections

Additional due diligence may be required for politically exposed persons (PEPs). Therefore, FIs should use a risk-based strategy when deciding which controls to implement and for how long.

What Is the Process for Enhanced
Due Diligence?

Companies should adopt risk-based EDD measures that consider every client’s unique AML/CFT risk per FATF recommendations. These ought to contain the following:

  • Obtaining more forms of consumer identification
  • Identifying the money’s or wealth’s source
  • Examining a business relationship’s specifics or a transaction’s goal more closely
  • Putting in place routine monitoring processes

Enhanced due diligence will be a standard component of many of the listed individuals and organizations’ relationships with businesses.

If an alert is marked for more investigation, it may cause EDD in a transaction monitoring system. Firms should undertake internal and external inquiries to find out more about the customer and the transaction in case extra information is required, either from a relationship manager or the client.

Recognize dangers before they materialize. Make sure your company has sound EDD policies in place. Screen against the only dynamic worldwide database that has organized, consolidated profiles for PEPs, Adverse Media, and Sanctions and Watchlists.

Superior Due Diligence Anti-Money Laundering Conditions

Companies are usually required by CDD laws to keep records of the information they gather for a minimum of five years. This comprises duplicates of all identifying papers (such as passports, birth certificates, and driver’s licenses) and company records. As a result, firms should be able to swiftly and effectively respond to demands for documents from regulators and provide authorities the information they need to reconstruct specific transactions, including the money amounts and kinds that were exchanged. In addition, companies must immediately submit a suspicious activity report to their jurisdiction’s financial intelligence unit (FIU) when CDD measures give rise to suspicion or reasonable grounds to believe a client is engaged in criminal behavior.

Local jurisdictions will have different regulatory needs, so businesses should investigate where they operate. Adverse media may be helpful even if it is not a statutory necessity for extra due diligence. For example, one’s involvement in money laundering, financial fraud, drug or human trafficking, financial threats, organized crime, terrorism, or other illegal activities may be revealed.

Enhanced Due Diligence vs. Customer
Due Diligence

EDD differs from standard CDD policies in these ways.

EDD is Robust and Rigorous

Compared to the fundamental statutory requirements of customer identification, determining ultimate beneficial ownership, and the nature and purpose of commercial relationships, enhanced due diligence regulations demand substantially more proof and in-depth information.

Adequate Assurance

When determining a KYC risk assessment, EDD standards should provide “reasonable confidence.” In addition, responsible researchers should carry out all required research stages and use their expertise and good judgment when making choices.

Comprehensive Documentation

The EDD process has to be well documented, with attention paid to how data is collected and the validity of information sources.

Politically Exposed Persons

PEPs should get special consideration since they are in situations where they may be utilized to launder money. The foundation of effective enhanced due diligence methods is a blend of knowledge and technology. Firms must be as adaptable and creative with their approach to EDD as they are with other facets of their AML/CFT policy when risk profiles and criminal activities change. Technology offers helpful tools to speed up EDD procedures, but human awareness is necessary to identify and counter emerging dangers.

Due Diligence Reports

We provide various due diligence reports from researching a subject’s history, finances, and reputation. In addition, you may use our studies to help decide how to proceed with essential business ties. Our due diligence reports have these qualities:

  • Cost-effective
  • Transparent, predictable, and adhered-to turnaround timeframes
  • Local expertise to enhance global coverage
  • Online user interface and API choices for ordering and delivery are simple and secure

Choose Due Diligence Reports from Strategic Acquisition Team

When working with, partnering with, or operating alongside other organizations, you must feel confident in your choices. To do this, you must have access to reliable information that you can rely on, understand, and act upon. Due diligence reports from Strategic Acquisition Team take advantage of our unmatched proprietary and partner data, a global network of human expertise, and human expertise to provide deep insight that can help you identify risk and offer protection from potential legal, reputational, and financial harm.

The Strategic Acquisition Team’s due diligence reports are made to provide deep intelligence specifically tailored to your use case and circumstance, whether you require quick, reasonably priced data-driven reports that deliver critical information on more entities or detailed integrity and advanced background on known high-risk clients, suppliers, or business interests.

Frequently Asked Questions:

What is the Difference Between CDD and ECDD?

Different levels of the know-your-customer (KYC) procedures that companies carry out on their clients are called customer due diligence (CDD) and enhanced due diligence (EDD). Regulatory bodies require them for many different businesses, but financial services are where they are most common.

Who is Subject to Enhanced Due Diligence?

EDD is required for consumers more likely to be involved in money laundering or terrorism funding, increasing the banks’ liability to such customers.

What are Red Flags in Due Diligence?

A “Red Flag” is crucial information that seems to be in conflict with or out of the ordinary concerning the law or possible liabilities of the target firm that, if left neglected, may subsequently provide unexpected hazards or dangers to the acquirers.

Equipping Your Business with the Knowledge to Make the Best

Strategic Acquisition Team reports may give you automated insights and conventional and advanced due diligence. They are appropriate for every industry or size of the organization located anywhere in the globe, ranging from third-party and KYC due diligence to ESG and investment due diligence. In addition, you may evaluate your suppliers and third parties depending on the risk-based strategy used by your organization and internal regulations. Additionally, you have the option of continuing to keep tabs on your suppliers and other third parties.

Learn more about how Strategic Acquisition Team ‘s comprehensive portfolio of products may help you secure regulatory compliance, safeguard your reputation, and provide you with the data you need to make well-informed choices.

Need Firm Compliance to Enhanced Due Diligence Regulations? Contact Strategic Acquisitions Team Today! Call 843-671-4200!

Strategic Acquisition Team 
800 Main St., Hilton Head Island, SC 29926
843-671-4200