The Financial Times Studio of PWM has conducted a special panel discussion that focused on “The mechanics of Due Diligence, World in Crisis: Securing Citizenship by Investment,” where representatives of three major due diligence firms took part.

The Editor in Chief of Financial Journalist at Financial Times PWM Magazine, Yuri Bender, was the host of the special panel discussion.

The panel of experts included Karen Kelly- Director of Strategy and Development at EXIGER, Eddy Leviten- Chief Operating Officer of FACT Worldwide, and Heyrick Bond Gunning -Chief Executive Officer of S-RM.

The COO of FACT Worldwide, Eddy Leviten, explained the overall scrutinization process of the whole application through different databases.

Leviten said, “We cross-check the credentials and documents through many different databases; the multilayered due diligence process is performed accurately and sharply. We check up all the records of the person involving birth, marriage, and other educational qualification as well as employment of the family.”

Leviten explained that the main applicant and their family members who have applied for the CBI programme also undergo similar background checks, and these checks are carried out comprehensively on all the applicants.

While focusing on the necessity to run enhanced and deep due diligence on investors, Eddy Leviten said, “We carry out the same level of investigation and checks for all the applicants and dependents based on the criteria that are given to us; by the client country.”

Leviten, who is an expert in KYC, fraud, due diligence, content protection and business intelligence, explained that some nations also hire two different due diligence agencies for better scrutinization and cross-referencing of the data of the applicant.

Additionally, he said that once the in-depth background checks are completed, a report is prepared, which is similar to the life story of a person as it contains every little detail about the applicant.

Leviten stated, “We don’t make the final decision, we just return the report back to the client, and it’s ultimately upon them, whether they approve the citizenship or not.”

Karen Kelly, who has an experience of more than ten years in due diligence, residency and citizenship programmes, stated that all host countries providing Citizenship by Investment hire a third-party due diligence firm to assure strict checks upon applicants.

She further stated that the process of scrutinization involves thorough document verifications, criminal background checks, on-ground examinations etc., to verify that the investor is legal.

Kelly discussed the importance of carrying out extensive checks on applicants; she also highlighted the significance of in-depth inspections of the investor by the host country to understand their background and who they actually are.

While stressing the importance of the due diligence procedure in residency and citizenship by investment programmes, Karen Kelly also said that deep information checks help in understanding the source of money that an investor is utilizing for the purpose of investment.

While directing toward the major Citizenship by Investment Programmes in the Caribbean, she said that the process meets the international standards and pays attention to the due-diligence process.

Karen stated, “The programmes in Caribbean countries are meeting the minimum standards and carrying out different levels of due-diligence process in a very effective manner, for which they also engage with regional, national and international law enforcement.”

Chief Executive Officer of SR-M, Heyrick Bond Gunning, talked about the common challenges and red flags while conducting due diligence on any applicant. He explained that one of the utmost red flags is when the investor is not working in the sector or field from where he is deriving its primary source of money.

“There are various issues that we see that we flag to our clients (host countries),” he added.

During the panel discussion, Gunning also talked about the significance of due diligence in the Citizenship by Investment Programme.

Gunning started his career in the British Army, and he was the one to set up DHL’s operations in Iraq during the end of the Gulf War. He shared some of his major life experiences during the group discussion.

As per the CBI Index published by Financial Times’ PWM Magazine, Caribbean countries have retained the top position because of their strict due diligence procedures. The report also explains those frequent updates as well as amendments to the due diligence credits to the high regard of the programmes keeping up with international standards.

According to the report of the Index, the Caribbean nations have been very determined upon giving all their efforts into polishing the integrity of their CBI Programmes and maintaining high security and safety