What is Due Diligence? Definition & Guide
Background checks conducted on applicants by governments and authorized agents to verify identity, source of funds and criminal history.
Due diligence in investment migration refers to the background checks conducted on applicants before their application is approved. These checks verify the applicant's identity, the lawful source of their investment funds, their criminal record, and any potential security risks.
Due diligence is conducted at multiple levels. The host country's government performs its own checks. Many programs also contract with international due diligence firms such as Exiger, Thomson Reuters World-Check, or Refinitiv. In the Caribbean, the Joint Regional Communications Centre (JRCC) coordinates cross-program checks.
The checks typically include: criminal record searches across multiple jurisdictions, adverse media screening, sanctions list checks (OFAC, EU, UN), source of funds verification through bank statements and tax returns, and verification of identity documents.
Due diligence fees vary by program. Caribbean CBI programs charge $7,500 to $10,000 per adult applicant. European Golden Visa programs often include due diligence within the government application fee, though some law firms charge an additional €2,000 to €4,000 for pre-submission checks.
Applications can be denied based on due diligence findings. Common reasons include undisclosed criminal convictions, associations with sanctioned individuals or entities, inability to verify the source of funds, and adverse media coverage related to fraud or corruption.
Why It Matters for Golden Visa Applicants
Every Golden Visa applicant undergoes due diligence. The process can take two to six months depending on the program and the complexity of the applicant's financial profile. Applicants with income from multiple countries, business ownership in several jurisdictions, or wealth derived from cryptocurrency or business sales should expect additional requests for documentation. Preparing a complete source-of-funds file before submitting the application reduces processing time. Applicants with any adverse media, even if resolved, should disclose it proactively with supporting documentation.
Example
"The due diligence review flagged a 2019 lawsuit that had been settled, requiring the applicant to provide court documents showing the case was dismissed."