Unveiling a Corrupt Distribution Network through ABC Risk Assessments

A long-time Kroll client, headquartered in Europe, acquired a well-known commercial goods company. As a result, Kroll’s client inherited a new distribution network, quickly expanding their established product distribution channel into numerous new markets, including Latin America, and integrated new individuals and companies into their organization.

Kroll's task was to provide anti-bribery and corruption (ABC) risk assessments and determine the focal points for post-deal reputational due diligence. We then developed market entry reports for the numerous Latin American countries included in the acquisition. These reports were vital for Kroll's client as they would be used to risk-rank their newly acquired distributors.

By exposing this illegal network, Kroll minimized significant reputational and financial harm for their client's well-established brand, safeguarding the people, assets and reputational value. The Kroll team went on to support their client in disclosures to U.S. regulators such as OFAC, ensuring compliance and preventing the facilitation of economic crime.

Kroll’s proven expertise proved indispensable in navigating and resolving the intricate challenges that emerged during the investigation. Kroll adeptly executed cost-effective and scalable reputational due diligence across multiple countries, many presenting substantial opacity challenges for international businesses. This success was achieved through the effective utilization of a diverse set of internal capabilities, including open-source research, document retrieval, relationship mapping and the collection of human intelligence.