Counterparty due diligence

Businesses, irrespective of their function or scale, need to work with partners – often called as counterparties or third parties

These partners, across the supply chain continuum, assist with varied activities including supplies, services, distribution, licensing, technology enablement and support, among many others. With increasing competitive intensity and globalisation, the importance of these partners cannot be overstated.

With the current regulatory norms applicable to businesses, securing such sort of relationships becomes more important than ever. KPMG’s experience with third party due diligence has shown that companies wish to conduct business with only such vendors/counterparties who do not impact their regulatory, reputational, and/or business continuity.

Typical concerns with counterparties

Significant dependence on the key principal
Counterfeiting and product piracy
Poor financial standing, leading to financial stress
Little public information on the entity
Quality issues leading to product liability risk

Violations of law and regulation
Issues of fraud, regulatory non-compliance and unethical practices
Poor experience with customers
Significant litigations

Our Offerings

Due diligence on entities/individuals prior to on- boarding/document collection and verification

Background reviews of incumbent partners and identifying significant risks or profile changes Continuous monitoring on third parties

Regulatory checks, such as those mandated by Section 29 A of Insolvency and Bankruptcy Code, 2016

Senior management due diligence for hiring at senior levels

Our approach

Enhanced checks-meant for third parties deemed to be critical/high risk

Includes reference checks, criminal checks, questionnaire-based interviews and site visits, in addition to the standard check scope-typically available only for India-based third parties
Standard checks-meant for third parties deemed to carry moderate risk

Includes a comprehensive public profile of the third party and key individuals, detailed negative media round up with focus on local public records such as litigations and corporate registries
Basic checks -meant for large batches of third parties, deemed to carry low risk

Includes checks on sanctions and watch lists to check if the name features on those, supplemented with media searches

Our expertise

Scale and knowledge

Over 70 dedicated profeccionals in the counterparty due diligence team
More than 8000 counter party due diligence reports each year, on an average
Robust experience of conducting checks on entities, based across the globe, leveraging KPMG in India's delivery hub

Sectoral experience

Extensive exposure to a wide range of sectors and industries, with knowledge on risks specific to each Industry
Worked acrocs Auto, FC, Pharma, Infra, Industrial manufacturing and others

Multi-lingual research capability

Wide experience of conducting public domain searches in various languages across the globe along with knowledge of key local sources for various jurisdictions
In-house language specialists for key dialects such as Mandarin, German, French, Spanish, Portuguese and others

On-ground Information collection expertise

Leveraging KPMG India's verification capabilities to conduct police verification and site visits acrocs India

Select Credentials

Large automobile manufacturer

Identification of business partners to set up a dealership network across India
To ascertain the credentials and reputation of the business partners to mitigate the risk of any adverse business practices

Multinational Investment bank

Due diligence checks on investment targets
To accertain the reputation and business practices followed by the company
Risk greding of the counterparties in high, medium and low risk bucketo

Large multinational pharmaceutical company

Due diligence checks on potential partners in India with focus on compliance with FCPA guidelines
To ascertain the compliance procedures followed by the partners
High risk partners go through an in-depth telephonic interview