"x x x.
What are the types of information that you should obtain in due diligence? Tabor had a good list for you to begin with, which included the following.
- Identification – It is important to obtain the basic identification information on a third party. This includes, names, addresses, phone numbers, basic license information, the identities of officers, directors, shareholders and those who will handle your business or be your point of contact. You need to obtain corporate regulatory and partnership filings, a list of countries where it does business and find out if there have been any name changes in the past five years.
- Financial – Your financial review should be based on three years of audited (if any) financial records.
- Capabilities – This should include a review of the party’s facilities, support services, amount of work outsourced, number of employees and number of years in business. You should also ask for a list of its top 10 customers.
- Government Exposure – You need to determine if the third party does business with any foreign governments or government officials and if there are any government officials otherwise involved with the third party. This extends to relatives and close friends of government officials.
- Enforcement Actions – Here you need to determine if the party or any of its officials have ever been charged with criminal conduct or been party to criminal proceedings. You also need to make the same inquiries for civil proceedings or regulatory actions. You should review news media stories on the party.
- Internal Control Environment – You should review the party’s compliance program, including their Code of Conduct. You should also test their employees’ familiarity with the FCPA or Bribery Act. See if the company has a written policy regarding gifts, travel and entertainment and if the employees are trained on same.
- x x x."
