Compliance Due Diligence Checklist

A Compliance Due Diligence Checklist is a document that outlines the steps and information required to assess the compliance risks associated with a potential business transaction, partnership, or acquisition. Key features include:

1. List of compliance areas to be reviewed (e.g., anti-corruption, data privacy, environmental compliance)

2. Specific documents and information to be requested and reviewed

3. Key questions to be asked during interviews or site visits

4. Red flags or risk indicators to watch for

5. Scoring or rating system for assessing compliance risks

This checklist serves as a systematic guide for conducting thorough compliance due diligence. It helps ensure that all relevant compliance aspects are considered before entering into a significant business relationship or transaction. The document typically covers a wide range of compliance topics, tailored to the specific industry and nature of the transaction. It may include sections on reviewing policies and procedures, assessing compliance history, evaluating internal controls, and examining regulatory filings. The checklist often includes guidance on how to interpret findings and what level of risk might be acceptable. It is usually used by legal, compliance, and business development teams during mergers and acquisitions, joint ventures, or when onboarding high-risk vendors or partners. This tool is crucial for identifying potential compliance liabilities early in the process and informing decision-making about whether and how to proceed with a transaction or relationship.