Diligex brings together a network of specialised professionals with experience in various fields including financial services, investment, gaming, insurance, banking, management reporting and legal compliance to provide comprehensive due diligence services. Such services are based on the latest international regulations, with their application being tailor-made to the client’s specific requisites. Diligex selects the level of due diligence required according to recognised scoring tests and the level of due diligence required by the client.
Diligex is an independent due diligence company offering specialised legal, financial and corporate due diligence services.
Services
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OUR PARTNER
AN ESSENTIAL PROCESS
A thorough due diligence process may be burdensome on a Business or Authority, yet is an essential tool for revealing the true identity of counterparts, protect investments and assist all parties to make decisions with greater confidence and peace of mind. Whether clients choose to voluntarily vet third parties to reduce their risks or whether they are required to do so to satisfy regulatory requirements, Diligex ensures that its client’s exposure to commercial, civil and criminal liability is mitigated to the least possible.
Know Your Customer
(KYC)
The first step of any due diligence process is that of knowing one’s customer, a process which is of utmost importance to Service Providers and Regulators alike.
When parties to a high value transaction are entering slightly more complicated agreements ranging from offshore finance transfers to jurisdictional licensing, a simple search on a desktop browser is not a sufficient check to verify the true identity and authentic representation of the natural persons or legal entities presumed to be entering such agreements.
Diligex offers its clients an outsourced and leaner compliance with KYC regulatory obligations, whilst absorbing the client’s uneasiness in requesting documentation and verifying its authenticity between interested parties. Diligex collects and certifies basic identity information, conducts PEP list cross-matching, carries out extensive searches, scrutinises all news, checks personal and legal history as well as audits the subject’s propensity or potential connection to money laundering activities, financing of terrorism, judicial proceedings or identity theft.
Diligex strives to gather information from valuable and reliable sources, thus effectively conducting an in-depth and real-time 360-degree assessment on natural persons and legal entities alike. It does not only make sure that it has the information at hand but also commits itself to examining the content in order to provide a high standard due diligence process. Resources and Databases utilised by Diligex for such processes include the Global News Archive, International Sanction Lists, Company Information, Country Risk Profile, connected Biographies, Financial Information Lists, Legal History and Public Records.
In a nutshell, Diligex strives to turn passive information into active intelligence.
Know Your Partners
(KYP)
Throughout the execution of investments, mergers or acquisitions, all parties involved require the highest level of comfort and certainty on the financial, legal and material status of counterpart transactors. As a specialised firm, Diligex focuses on mitigating financial and business risks assumed by partners on a joint venture, making it easier for clients to vet and monitor the business environment within which they are entrusting their investments and stock.
Diligex is appointed at initiation stage of Mergers and Investments entrusted with the responsibility of obtaining information on the company’s equity, ownership chart, corporate governance, financial health and cash flow analysis, public records, management reports, litigation history and UBO identification amongst others.
Diligex is also highly equipped to perform detailed risk assessments on particular jurisdictions, niche markets or innovative industries, whilst providing predictions and propensity exercises related to risk scores and credit data.
Know Your Trade Debtors
(KYTD)
Trade credit costs money and carries a considerable element of risk. Diligex ensures that this risk is quantified and contained before such credit is actually granted.
A proper analysis of the credit worthiness of prospective customers can only be made with reliable, complete, accurate and timely information. Financial statements and audited reports do not necessarily provide a real-time view of the company’s exposure to credit risk. Besides the challenged posed by time-lapses between the effective date of financial reporting and the presentation of accounting reports, Traders are now facing a harder task in successfully investigating and detecting financial inconsistencies and identifying weak creditors due to the introduction of the Single Accounting Directive. This new legislation stipulates that such accounts and reports would not be necessarily forthcoming due to the widening definition of small companies within the said Directive, making most businesses exempt from producing such detailed reports.
Notwithstanding the above challenges posed by ever changing legislation and circumstances, Diligex focuses on verifying current financial information and assessing the underlying performance of any business, small or large. Current assets and liabilities, stock levels, earnings, cash flow, debt and management are the key areas assessed and scrutinised in such a due diligence process.
Know Yourself
(KY)
Companies and entities involved in the provision of professional services within highly regulated industries are required by Law and the relevant Authorities to maintain up to date documentation and reporting on their internal key stakeholders. The nature of the information required varies in accordance with compliance requirements within each particular profession, warrant, business field or license requirements.
Directors, Shareholders and ultimate beneficial owners need to protect the privacy and confidentiality surrounding all their sensitive personal and company data constantly required for the execution of various regulatory, banking and legal obligations attached to various company undertakings carried out through the course of its business.
Various transactions are carried out by companies amongst diverse jurisdictions, with multiple stakeholders together with an extensive list of third party service providers, and thus require the constant collection, verification, storage, classification and provision of sensitive Financial and private data.
Diligex is frequently requested to act as authorised concessionaire of such data, to confidentially collect, safely store and securely provide such documentation to interested parties. This is only carried out upon the formal request of regulators or service providers and after obtaining the necessary authorisation from the client, removing the risk of potential confidentiality breaches, intra-company leaks, non-essential disclosure of information and financial exposure which may in turn jeopardise internal management structure or unnecessarily divulge competition-sensitive information amongst others.
Due-Diligence
The Diligex Model
FOR PROVIDING DUE DILIGENCE SERVICES
The Diligex model for providing due diligence services is a comprehensive one which may be expanded as necessary to cater for the complexity of compliance requirements whilst being sensitive to the various corporate objectives required by each and every one of its clients. Diligex’s utmost responsibility is that of gathering key information which assists its clients in predicting and screening prospects whilst assessing and capturing the potential risks of any such interested parties.
Part of the process includes validating such information provided for both supplier and recipient. Diligex can further be engaged to design and maintain a monitoring plan and internal review process which is regularly updated to meet the changing regulatory and corporate requirements in which the company is engaged.
The Importance of Documentation
Diligex strives to gather information from valuable and reliable sources, thus effectively conducting an in-depth and real-time 360-degree assessment on natural persons and legal entities alike. Not only does Diligex ensure that the information requested is effectively in hand but also commits to examining the content as far as is necessary in order to provide the highest possible standard of due diligence.
Key Processes Involved
Legal Due Diligence
including examination of title, investigations on intellectual property rights, corporate structure and equity, judicial proceedings, employment contracts and standards, regulatory compliance and pending litigation.
Financial Due Diligence
including verification of financial information, assessment of underlying performance, reporting of earning assets and liabilities, audit of cash flow and debt management as well as other financial information.
Fit and Proper Person
including assessment of current domicile, judicial standing, verification of residence and citizenship, verification of identity via supporting documentation, establishment of good conduct, regulatory compliance and personal financial standing.
Regulatory Due Diligence
including assessment of licensing requirements, maintenance of good legal standing, provision of documentation, authentication of bank relationship, audit of financial status and verification of minimum jurisdictional, legal and regulatory thresholds.
Identity Is Key
Identity includes the collection and analysis of information, determination of customer risk, verification of source of income, projection of transaction behaviour and management of identity records and profile.
All the above services and additional services provided by Diligex adopt a standard and proper identification procedure applied across international industries and is completely in line with anti-money laundering and anti-terrorism regulations. Procedures include verification of data cross match and image verification amongst others.
Due Diligence policies and procedures adopted by Diligex are adopted by various key industries including the provision of License Applications, the carrying out of compliance audits, the provision of hands on consultancy of mergers and acquisitions and also the drafting and presentation of risk audits to various enterprises and authorities.
Key People Involved
Diligex strives to achieve recognised standards adopted worldwide within the field of due diligence, to ensure that it meets its client’s highest expectations and manages their relationship with key stake holders with utmost professionalism. Our staff is trained to respect utmost confidentiality and operate within data protection obligations and standards.
The Due diligence process requires constant interaction with various Stakeholders namely Directors, Shareholders, Ultimate Beneficial Owners, Strategic Partners, Legal Officers, Key Officials, Financial Advisors, MLROs, CFOs, License holders and investors. We at Diligex appreciate the importance of nurturing such personnel. Bearing this in mind, the sensitive ‘hand in glove’ approach required to protect these relationships is strictly adhered to by all staff members here at Diligex.
Contact
Diligex
Mdina Road,
Żebbuġ, ZBG 9015,
Malta
+356 2124 0363
Thomson Reuters
3 Times Square,
New York,
United States
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