In ensuring that the stakeholders uphold trust and accountability within organisations, various regulators have provided guidelines on ‘fit and proper’ due diligence. While the specific requirements vary by regulator and jurisdiction, overarching mandates for ‘fit and proper’ due diligence apply to significant shareholders and ultimate beneficial owners (UBOs), board members, senior management.
Effective ‘fit and proper’ due diligence is essential for uncovering key risks such as financial mismanagement, conflict of interest, legal and regulatory challenges, and ethical and reputational risks that can lead to operational disruptions, and more. A robust approach to address these critical risks involves public domain due diligence, discreet intelligence gathering, secure whistleblower systems, on-going risk monitoring. By adopting a tailored risk-based approach and integrating ESG (Environmental, Social, and Governance) due diligence, organisations can better mitigate risks and ensure compliance in an increasingly complex regulatory environment.
