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A Due Diligence Policy sets out the steps an organization takes to assess risks and verify information before making important business decisions. In Belgian companies, these policies help ensure compliance with anti-money laundering laws, the Code of Companies and Associations, and EU regulations on corporate responsibility.

The policy typically outlines specific checks for different situations - from reviewing financial records when acquiring a business to screening potential partners and suppliers. It protects organizations by creating a clear framework for investigation and documentation, while demonstrating to regulators that the company takes its compliance obligations seriously. Belgian firms often update these policies to align with evolving EU sustainability and corporate governance standards.

Your organization needs a Due Diligence Policy when entering high-stakes business situations that require thorough investigation. This includes mergers and acquisitions, forming partnerships with new suppliers, or expanding into new markets. Belgian companies particularly need these policies when dealing with cross-border transactions within the EU or engaging with sectors subject to heightened regulatory scrutiny.

The policy becomes essential before major investment decisions, when onboarding significant clients, or during corporate restructuring. It's particularly valuable for Belgian firms navigating EU sustainable finance requirements, anti-money laundering regulations, or when working with partners in high-risk jurisdictions. Having this policy ready before these situations arise helps prevent rushed, inadequate investigations.

• Basic Corporate Due Diligence Policy: Covers fundamental checks for business transactions, focusing on financial health, legal compliance, and corporate structure verification.
• Anti-Money Laundering Due Diligence Policy: Specifically addresses Belgian AML regulations and EU directives, with detailed procedures for customer screening and risk assessment.
• ESG Due Diligence Policy: Aligns with EU sustainability requirements, examining environmental impact, social responsibility, and governance practices.
• M&A Due Diligence Policy: Details comprehensive investigation procedures for mergers, acquisitions, and corporate restructuring under Belgian law.
• Supply Chain Due Diligence Policy: Focuses on vendor verification, third-party risk assessment, and compliance with EU supply chain regulations.

• Corporate Legal Teams: Draft and regularly update the Due Diligence Policy, ensuring it meets Belgian and EU regulatory requirements
• Board of Directors: Approve the policy and oversee its implementation across the organization
• Compliance Officers: Manage day-to-day implementation and monitor adherence to policy guidelines
• M&A Teams: Apply the policy during transactions, coordinating with external advisors and stakeholders
• External Auditors: Review policy implementation and provide independent verification of compliance
• Department Managers: Execute policy requirements within their areas and report findings to compliance teams

• Industry Assessment: Identify specific regulatory requirements for your sector under Belgian and EU law
• Risk Mapping: Document key business risks and compliance obligations that your policy needs to address
• Scope Definition: Outline which business activities and transactions will require due diligence procedures
• Process Documentation: Detail step-by-step procedures for conducting investigations and maintaining records
• Stakeholder Input: Gather feedback from department heads on practical implementation challenges
• Review Mechanisms: Establish clear procedures for policy updates and compliance monitoring
• Platform Generation: Use our platform to create a legally sound, customized policy that includes all required elements

• Purpose Statement: Clear objectives and scope of the policy, aligned with Belgian corporate governance requirements
• Risk Assessment Framework: Detailed methodology for evaluating business risks and compliance obligations
• Investigation Procedures: Step-by-step protocols for conducting due diligence investigations
• Documentation Requirements: Specific records to maintain under Belgian corporate and AML laws
• Data Protection Measures: GDPR-compliant procedures for handling sensitive information
• Reporting Mechanisms: Clear processes for internal reporting and escalation procedures
• Review and Update Provisions: Schedule and process for policy maintenance and updates
• Compliance Statement: Declaration of adherence to Belgian and EU regulatory requirements

A Due Diligence Policy differs significantly from a Due Diligence Checklist in both scope and function. While they work together, each serves a distinct purpose in Belgian corporate governance.

• Strategic vs. Tactical: The Policy establishes overarching principles and procedures for conducting investigations, while the Checklist provides specific items to verify during each due diligence process.
• Permanence: The Policy is a standing document that guides all due diligence activities, whereas the Checklist is typically transaction-specific and customized for each investigation.
• Legal Weight: The Policy carries more formal authority within the organization and demonstrates compliance with Belgian regulatory requirements, while the Checklist serves as a practical tool for implementation.
• Audience Focus: The Policy targets management and compliance teams with broad guidelines, while the Checklist helps operational staff execute specific due diligence tasks.