11. Corporate Identity Verification
Before anything else, confirm the entity actually exists and is what it claims to be:
- Verify legal entity name against corporate registry
- Confirm registration number and jurisdiction of incorporation
- Check registered address against physical presence
- Verify business licences and permits relevant to their services
- Confirm the entity is in good standing (not dissolved, struck off, or suspended)
Grep's corporate registry checks cover 200+ jurisdictions and verify all of the above automatically.
Always verify a vendor's legal existence through official corporate registries — never rely solely on their own documentation.
22. Ownership & Control Structure
Understanding who ultimately owns and controls a vendor is critical for identifying hidden risks:
- Identify all shareholders with 10%+ ownership
- Trace beneficial ownership to natural persons
- Map the corporate structure (parent companies, subsidiaries, affiliates)
- Identify directors, officers, and key management personnel
- Check for politically exposed persons (PEPs) in the ownership chain
The entity you're contracting with is only part of the story. The ownership chain often reveals the real risks.
33. Sanctions & Watchlist Screening
Screen the vendor, its beneficial owners, and key personnel against comprehensive sanctions lists:
- OFAC Specially Designated Nationals (SDN) list
- EU Consolidated Sanctions List
- UN Security Council Sanctions
- OFSI (UK) sanctions list
- Country-specific sanctions programmes
- PEP databases and watchlists
- Debarment and exclusion lists (World Bank, government procurement)
Screen the entity AND its beneficial owners. Sanctions evasion through shell companies is the most common enforcement gap.
44. Financial Health Assessment
- Review recent financial statements (if available)
- Check credit ratings and payment history
- Verify no outstanding liens, judgments, or bankruptcy proceedings
- Assess financial stability relative to the contract value
- Check for recent significant changes in financial condition
A financially unstable vendor is a risk regardless of their compliance posture.
55. Litigation & Regulatory History
- Search federal and state court records for litigation history
- Check regulatory enforcement actions and consent orders
- Review any fines, penalties, or remediation orders
- Identify patterns of recurring legal issues
- Check for any ongoing investigations or proceedings
A single lawsuit is noise. A pattern of litigation reveals systemic risk.
66. Adverse Media & Reputation
- Screen for adverse news coverage (fraud, corruption, sanctions violations)
- Check for negative regulatory commentary
- Review industry reputation and peer assessment
- Check social media and whistleblower reports
- Search in relevant local languages, not just English
Grep's adverse media screening covers global news sources and uses AI to filter genuine risk signals from noise.
Adverse media screening is only as good as its source coverage. Checking 2-3 English news sources is not sufficient.
Vendor Due Diligence Checklist (PDF)
Download the complete checklist with scoring templates and risk tier definitions.
Download PDFRelated Content
Continue learning with these related resources.
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