In “Overcoming the Challenges of Conducting Third-Party Diligence in Brazil” (The Anti-Corruption Report, 4 Oct. 2017), offers answers to questions about third-party due diligence in Brazil, why it’s so important, and how it should be conducted.
According to Snežana, Brazil’s heavily bureaucratic regulatory environment often means more third-party interaction with the government, which heightens the risk of corruption and, in turn, raises the need for proper due diligence. In Brazil, she explains, “To conduct effective due diligence, it’s crucial to have a thorough understanding of the legal and regulatory system, to have thorough knowledge of where public records can be found and the form in which they can be found, and to know the manner in which they can be most effectively retrieved.”
“In most situations, companies will need to go further [than a public records search] and do source work or human intelligence,” Snežana adds. “A company with relationships in Brazil will normally rely on its trusted sources. For example, at K2 Intelligence, we have sources in industry circles, in political circles and in law enforcement that we’ve had relationships with over many years.”