The business world is filled with stories and accounts of those committing fraud, swindling either investors or other businesses out of millions of dollars.  The valid question to pose is why did someone in the company not practice and follow the procedures of due diligence.  Due diligence is the term used to describe the steps in which one takes, or should take, when conduction business transactions with new clients or new business partners.  Everyday citizens practice due diligence.  If one is looking to purchase a used vehicle, the due diligence to practice is to check the condition of the exterior and the interior of the vehicle, to look for signs of the quality of care.  One should check under the hood to ensure that the parts of the engine are in working order.  One checks the tires and the gauges on the dashboard.  In this way, the reduce the risk factor of becoming involved in the unknown, the new.  It is the act, or set of acts, that serve to set the mind at ease, that involve becoming thoroughly knowledge about any situation in which one is about to become involved.

For international corporations, financial institutions and governments throughout the world, this is one of the most important aspects to consider and to enforce.  These are times of political corruption, of bribery and money laundering for criminal purposes including that of the financing of terrorist cells.  Should an otherwise respectable business or individual become unknowingly involved with a second party that is later discovered to have funded a terrorist cell at some point, that company or individual not only risks the loss of financial resources and reputation, but they become held legally liable as well.  Ignorance of the situation is not an acceptable defense anymore.  Although the practices may seem time consuming or unnecessary, those inconveniences are over shadowed by the consequences of not being fully aware of those whit whom one is about to become involved.

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