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DEEP BACKGROUND

THE BLOG ABOUT BACKGROUND CHECKING

TOPIC: Due diligence

    August 30th, 2017

    How high in an organization should deals be vetted?

    By John Mintz

    TOPICS: Due diligence

    Even Goldman Sachs, which is known for buttoned-up due diligence procedures, can fail to put senior-enough eyes on a risky deal. That possibility arose in the firm’s dealings with the especially corrupt Nicolas Maduro regime in Venezuela, which recently floated bonds to finance its state oil company. Goldman purchased $2.8 billion worth, paying 31 cents […]

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    August 25th, 2017

    Failing to heed red flags can lead to trouble – $599 million worth

    By John Mintz

    TOPICS: Due diligence

    The U.K.’s Serious Fraud Office gave Rolls-Royce some faint praise before blasting it in a recent court statement; the SFO said the global firm “did undertake some compliance” into a Nigerian company hired to help it land business there, but that the due-diligence effort “was ineffective, and failed to detect the corrupt nature of the […]

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    August 14th, 2017

    Could FINRA do more to inform the public about business risk?

    By John Mintz

    TOPICS: Due diligence

    Embed from Getty Images Background screening is all about assessing the risk of doing business with someone. A recent article by Reuters says that a leading financial regulator is withholding from public view potential red-flag data about brokerage firms that could be helpful to investors and others who are gauging risk. The news service reported that […]

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    February 13th, 2017

    U.S. Treasury: “Zero Tolerance” is not the standard for bank due diligence

    By John Mintz

    TOPICS: Due diligence

    In recent months the IMF, World Bank and other institutions warned that global banks were being so tough in their anti-money laundering and due-diligence campaigns that some small economically weak nations were virtually banished from the worldwide banking system. In response, the U.S. Treasury replied that it never intended an overly punitive “zero tolerance” regime. IMF […]

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    November 28th, 2016

    A case that led the FBI to warn, “do your due diligence when thinking about investing…”

    By John Mintz

    TOPICS: Due diligence

    Some background checking might have unveiled a decade-long Ponzi scheme in California that defrauded almost 200 people and institutions.  In 2014, Deepal Wannakuwatte of Sacramento pled guilty to fraud and other crimes in a case involving $230 million he fraudulently obtained between 2002 and 2014, according to federal court documents and Justice Department news releases.  […]

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    October 13th, 2016

    Tougher anti-bribery due-diligence coming

    By John Mintz

    International companies are gearing up for the publication in coming days of the final version of a new set of anti-corruption best practices recently agreed to by a global panel.  Officials of the U.S., the U.K., and dozens of other nations approved the International Organization for Standardization’s ISO 37001 draft anti-bribery standards.  The new rules require […]

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