HCLA’s due diligence services provides an enhanced assessment of our clients’ business partners. Using IT and digital tools, the due diligence team seeks to uncover the target company’s performance, liabilities, key risks and opportunities, and potential investment needs. In performing this service, HCLA intends to shield the client and its interests in the envisaged business relationship, by providing the necessary overview of potential liabilities not foreseen in the initial negotiations phase of the transaction.
To this extent HCLA focuses on traditional points of interest, as well as specific contextual points of interest, the latter being determined on a case-by-case basis. The traditional points of interest in our due diligence process involves, money laundering risks, terrorism financing risks, sanctions risks, compliance issues, Know-Your-Customer checks (KYC), tax issues, employment issues, environmental risks, and jurisdictional issues.
HCLA’s due diligence procedures comprise an in-depth analysis of the customer, the nature of the business, and the respective assets to be used in the transaction, whilst assessing their compliance with relevant regulations, including the anti-money laundering (AML) compliance laws, combating the financing of terrorism (CFT) regulations, and any applicable sanctions regimes. However, this degree of due diligence does not always represent a risk-averse enough license to enter into a business relationship. Therefore, extreme caution should be exercised when interacting with individuals or companies with a potentially negative track record, including the risk of engaging in activities that may be illegal or subject to certain sanctions regimes. The enhanced due diligence (EDD) procedures are designed to improve the security of any business relationship when a high-risk profile customer is involved.