Third-party due diligence
Definition
The process of verifying the identity, ownership, reputation, and business legitimacy of agents, distributors, joint-venture partners, and other intermediaries. Required under the FCPA and UK Bribery Act because companies can be held liable for corrupt payments made through third parties.
Related terms
- Conflict of interest
- A situation in which a person's private interests, financial, personal, or professional, could improperly affect their exercise of a duty to an...
- FCPA (Foreign Corrupt Practices Act)
- A 1977 US federal statute with two pillars: anti-bribery provisions that prohibit payments to foreign government officials to obtain or retain business,...
- Politically exposed person (PEP)
- An individual who holds or has held a prominent public function, including senior government officials, judges, military officers, and their close family...
- Sole-source justification
- A documented explanation for awarding a contract without competitive bidding, typically claiming that only one supplier can meet a requirement. In bribery...
- UK Bribery Act 2010
- A UK statute that criminalises both public and private sector bribery, covers any person (not only government officials), and creates a strict-liability...
Explained in
- Auditing Bribery and Conflicts of InterestThe process of verifying the identity, ownership, reputation, and business legitimacy of agents, distributors, joint-venture partners, and other intermediaries...