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A Due Diligence Policy sets out the steps your organization takes to evaluate risks before making important business decisions. It's your roadmap for thoroughly checking potential partners, investments, or acquisitions - helping you spot red flags and protect your company from legal and financial problems.

In Singapore, these policies typically align with the Monetary Authority of Singapore's guidelines and help companies comply with anti-money laundering laws. A good policy covers key areas like background checks, financial reviews, and regulatory compliance, while spelling out who handles what and when. Companies use it daily to make smart, well-researched choices and avoid costly mistakes.

Your organization needs a Due Diligence Policy before entering any significant business relationships or transactions in Singapore. This is especially crucial when acquiring companies, choosing investment partners, or onboarding major clients and vendors. Having this policy ready before starting negotiations saves time and prevents rushed decisions.

Put your policy to work when vetting potential business partners, conducting merger investigations, or dealing with high-risk transactions under MAS regulations. It's particularly valuable when expanding into new markets, working with overseas partners, or handling deals that could impact your company's reputation or financial stability. Regular updates keep it current with changing compliance requirements.

• Standard Corporate Policy: Covers basic partner and vendor checks, financial reviews, and compliance verification - commonly used by SMEs in Singapore
• Enhanced Financial Due Diligence: Focuses on detailed financial audits, cash flow analysis, and asset verification - essential for M&A transactions
• Regulatory Compliance Policy: Emphasizes MAS guidelines, anti-money laundering checks, and Know-Your-Customer requirements - crucial for financial institutions
• Investment Due Diligence: Tailored for evaluating investment opportunities, including market analysis and risk assessment frameworks
• Industry-Specific Policies: Customized for sectors like real estate, technology, or manufacturing, addressing unique regulatory and operational risks

• Legal Counsel: Draft and update Due Diligence Policies to align with MAS regulations and company needs
• Compliance Officers: Implement the policy, oversee due diligence processes, and maintain documentation
• Board of Directors: Review and approve policies, ensure corporate governance standards are met
• Department Heads: Apply policy requirements when evaluating new business relationships or deals
• External Auditors: Review policy compliance during annual audits and risk assessments
• Business Development Teams: Follow policy guidelines when vetting potential partners or investments

• Company Profile Review: Gather your organization's structure, business activities, and risk appetite levels
• Regulatory Framework: List applicable MAS guidelines and industry-specific requirements affecting your operations
• Process Mapping: Document your existing due diligence practices and identify gaps or inefficiencies
• Stakeholder Input: Collect feedback from legal, compliance, and business teams on practical needs
• Resource Assessment: Determine who will handle different aspects of due diligence and what tools they need
• Template Selection: Use our platform to generate a customized policy that meets Singapore's legal requirements

• Purpose Statement: Clear objectives and scope of due diligence activities aligned with Singapore regulations
• Risk Assessment Framework: Detailed criteria for evaluating business relationships and transactions
• Compliance Requirements: References to MAS guidelines, AML laws, and relevant industry standards
• Roles and Responsibilities: Clear designation of who performs and approves due diligence tasks
• Documentation Standards: Required records, retention periods, and data protection measures
• Review Procedures: Process for periodic policy updates and compliance monitoring
• Escalation Protocol: Steps for handling red flags and reporting suspicious findings

While both documents support thorough business evaluations, a Due Diligence Policy differs significantly from a Due Diligence Checklist. The policy establishes your organization's overall framework and principles, while the checklist serves as a practical tool for implementing those principles.

• Scope and Purpose: Policies set long-term guidelines and standards; checklists provide specific items to verify during individual transactions
• Legal Standing: The policy is a governance document that binds your organization, while checklists are operational tools without independent legal force
• Usage Pattern: Policies require periodic review and formal updates; checklists can be modified for different situations or deal types
• Content Detail: Policies explain the 'why' and 'how' of due diligence processes; checklists focus on the 'what' with specific items to check