Due Diligence enables informed decisions to be made as to the bona-fides, integrity, reliability and eligibility of a potential partner.
Such a process ensures that prior to establishing a relationship, such as a contractual partnership, a degree of assurance as to the viability of such a relationship has been established.
While due diligence can be a legal obligation, the term is more often associated with an informal investigation or accountability process. Undertaking this activity contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers. Due diligence is also a process that assists risk management.
The United Nations Risk Management Unit has developed a Common Minimum Standards for Due Diligence, which have been designed to assist the United Nations Country Team and partners in collectively raising the level of and quality of information that is collected with respect to implementing partners and business entities. A number of example Declarations are also included, which provide increased accountability and transparency, as well as greater assurance of partner integrity:
1. Declaration of Conflict of Interest
2. Declaration of Non-Support for a Designated entity
3. Declaration of any Previous or Pending Legal Processes or Investigations
4. Declaration of recognition and Support of/for any United Nations compliance activity (ies)
5. Declaration of recognition that provision of false information or statement, will automatically lead to disqualification from any UN contracting, procurement or employment process.
The attached document outlines the Common Minimum Standards for Due Diligence. While these are not designed to replace existing due diligence processes which may be quite robust, they may be used as a check list to strengthen and support due diligence activities.