Exploring EDD for complex structures in cross-border trade and international compliance to mitigate risks and ensure transparency in global transactions.
Understanding Complex Structures in Cross-Border Trade and International Compliance
When it comes to cross-border trade, one of the key pillars of compliance is conducting thorough Customer Due Diligence (CDD). This process becomes especially critical when dealing with complex corporate structures. As businesses expand across borders, it’s not uncommon to encounter ownership models that appear convoluted, and while these structures might have legitimate business reasons, they also pose potential risks that need to be understood and mitigated.
In this blog entry, we’ll dive into how to conduct CDD on complex ownership structures and the heightened scrutiny that must be applied in these cases and how to do it.
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We cover the following topics in this blog
Conducting CDD on Complex Structures
Background Checks for Customers and Beneficial Owners
Investigation Elements in Complex Ownership Structures
Additional Information to be Obtained in EDD Cases
Purpose and Intended Nature of the Business Relationship
Enhanced Verification of Beneficial Ownership
Ongoing Monitoring and Review
Third-Party Verification and Investigations
Additional Documentation for High-Risk Cases
Senior Management Approval in EDD
Importance of Documentation in CDD and EDD
EDD in International Trade and Compliance
Case Study: EU Sanctions Against Russia and EDD for High-Risk Items