Due diligence in high-risk jurisdictions — countries with weak rule of law, high corruption levels, limited corporate transparency, or significant political instability — presents challenges that are qualitatively different from those encountered in well-regulated markets. The records are less reliable, the official sources are less complete, the informal intelligence environment is more important, and the consequences of missing something significant are more severe because the legal remedies available if problems emerge are weaker.
Calibrating the Investigation to the Jurisdiction
The most important principle in high-risk jurisdiction due diligence is that the investigation must be calibrated to what is actually achievable in the specific country rather than what would theoretically be ideal. A due diligence process that applies the same record-search methodology to a transaction in Azerbaijan as to one in Germany will produce very different levels of reliability in its findings, and acknowledging that difference honestly is essential to making the investigation output useful to the decision-maker.
Bond Rees conducts a jurisdiction assessment at the outset of every high-risk due diligence engagement, establishing what official records are accessible, what informal intelligence sources are available, and what gaps in the intelligence picture cannot be filled through any available lawful means, so that the client understands the limitations of the investigation alongside its findings.
On-the-Ground Investigation
High-risk jurisdiction due diligence typically requires on-the-ground investigation by a partner investigator with specific knowledge of the relevant country: the political and commercial landscape, the reliable and unreliable information sources, and the contacts within the legal, regulatory, and business community who can provide informed context for the formal record picture. Bond Rees has established relationships with trusted investigators in the most commonly relevant high-risk jurisdictions, enabling us to provide this capability efficiently and reliably.
Need due diligence in a high-risk jurisdiction? Contact Bond Rees for expert international investigation.
