TSG’s enhanced due diligence process enabled our client to make an informed decision regarding a high-risk vendor in the Mexican logistics sector. Through comprehensive public record checks and discreet on-the-ground intelligence, we provided critical insights into the vendor’s operations and potential risks.
The Problem
Our client’s third-party risk management system identified a vendor in the Mexican logistics and customs sector as high risk, prompting an urgent need for a thorough due diligence investigation.
This vendor, a Mexican entity, and its five key principals were identified as potential risks requiring enhanced due diligence. The client sought to understand any historical or ongoing concerns related to these subjects, given the sensitive nature of their roles in logistics and customs.
The scope of work required in-depth public record checks and on-the-ground business intelligence to uncover any hidden risks and ensure compliance with regulatory standards.
Public records provided limited and fragmented information, which was further complicated by the varying jurisdictions and the intricacies of the Mexican legal and regulatory environment.
The subjects’ geographical footprint further added layers of complexity, necessitating research in multiple languages, including Spanish, English, Arabic, and French.
The challenge was to obtain a comprehensive and accurate picture of the subjects’ backgrounds, affiliations, and potential conflicts of interest without alerting the targets or compromising the investigation.
The Solution
TSG’s experienced team conducted an exhaustive public record check on the subjects, including all their trading names, former names, and aliases. This phase involved retrieving corporate records, litigation and regulatory filings, debts and bankruptcy checks, sanctions, political exposure, and watchlist screenings.
The team meticulously reviewed national, state, and local databases, outlining the sources and ensuring the most relevant information was included in the report.
Additionally, TSG conducted comprehensive media research in Spanish and English, supplemented with Arabic and French where relevant. This helped to uncover any hidden affiliations or government dealings.
The team identified the ultimate beneficial owners of the company and detailed the key principals’ business affiliations to detect any potential conflicts of interest. One individual was found to have a regulatory fine and links to a fraud scheme, both of which were thoroughly researched and documented.
To supplement these public domain findings, TSG engaged its on-the-ground associates to identify 5-6 relevant sources for further information on the company and its key principals. This phase involved discreet inquiries with sources such as a customs association official and other prominent individuals in the Mexican customs industry.
These sources provided additional insights into the subjects’ reputations, operational presence, and professional backgrounds. The team verified that the day-to-day management and owners were aligned with the documented official records, ensuring the investigation’s accuracy and depth.
The Impact
The result of TSG’s rigorous process was a comprehensive report that provided the client with both a concise summary and an in-depth profiling of the company and its key management.
The report highlighted identified risks, categorised these accordingly, and noted their relevance within the context of the industry and jurisdiction.
The thorough documentation enabled the client to demonstrate adherence to their third-party risk management process for high-risk vendors by conducting enhanced due diligence.
Our findings allowed the client to assess whether establishing a business relationship with the subject entity was within their risk appetite. The detailed report facilitated informed decision-making and the implementation of targeted risk mitigation plans.
This proactive approach ensured that the client could navigate potential risks effectively, safeguard their operations, and maintain regulatory compliance in a complex and high-stakes environment.