A Nugget of Wisdom and Best Practice: Compliance & Due Diligence


From the Currency of International Trade – Part One

Compliance & Due Diligence

When we sell internationally, we cannot afford to think only of the sale or the financial transaction, the content. We need to take a holistic and comprehensive approach. We need to think of the context too. A transaction needs to be vetted and questions need to be asked and answered. Compliance and due diligence are an imperative for the health of the transaction.

Here are the seven questions that every credit professional selling internationally needs to ponder and find answers to:

  1. Is the transaction legitimate or fraudulent?
  2. Is the prospect or customer able to pay?
  3. Is the prospect or customer willing to pay?
  4. What are you exporting?
  5. Where are you exporting?
  6. Who will receive your item?
  7. What will your item be used for? End user or end use

Failing to answer any of the above questions could result in losses and possible penalties to the company.

The above questions require a new mindset and a diligent process. Shortcuts should be avoided and a mindset of due diligence should be adopted.

I hope this nugget of wisdom and best practice could help credit professionals mitigate the risk and help their companies and customers to prosper.

This is one of the nuggets I expound and explain in the course The Currency of International Trade – Part One: Highlights on Credit

Credit Currency Due Diligence

For details, please click the




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