Due diligence, Part II.(Reprint)

Due diligence is fundamental to the survival of any corporate risk-based business operation whether it operates in one or many jurisdictions. What documentation and checks should companies have in place to make sure they perform effective due diligence?

Part One of this article discussed the scope of due diligence and why it is such an important area for financial institutions. This article will take a look at the documentation required to ensure an effective due diligence policy is in place.

Documentation Required For Due Diligence

The following is a checklist on what documentation should be obtained in order to fulfill due diligence requirements.

* Full identification of the proposed customer should be accompanied by established documents of identification, certified copies of which should be obtained. This documentation will include passport, proof of residence, and proof of nationality of birth and/or proof of nationality by adoption, details of occupation including position held, name and address of company and photographic identification.

* In company applications, originals of the memorandum and articles of incorporation should be inspected and certified copies obtained.

* Full and complete details of directors and the company secretary should be obtained, including personal contact details.