Risk-based due diligence of third-party intermediaries: a scorecard approach
By Roy K McDonald and Vishali Singal
Companies operating internationally often engage numerous — sometimes even thousands — of third parties around the world to help facilitate their business. Alongside the growth of such relationships, the risks posed by them have taken on new significance with the rising tide of anti-corruption and anti-bribery enforcement actions throughout the world.
As a direct consequence, the importance of third-party due diligence cannot be understated. Indeed, the level and thoroughness of third-party due diligence that a corporation undertakes is a factor that the US Department of Justice and the Securities and Exchange Commission expressly consider when they are deciding whether to prosecute and enforce alleged violations of the Foreign Corrupt Practices Act.
Therefore, ensuring that you complete proper due diligence can make the difference between a third-party relationship that truly adds value to a company and having to tackle expensive, time-consuming and, in the worst case, disastrous problems that may arise in the wake of actions a third party may take on behalf of your company….
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The ATO has released its long-awaited public guidance on the Australian tax and GST treatment of bitcoin and other crypto-currencies.
Don’t forget the 23 September 2014 deadline to ensure your business associate agreements comply with the Omnibus Final Rule
Covered entities with business associate agreements that were entered on or before 25 January 2013 must revise their BAAs by 23 September 2014.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions