Question 1

What due diligence is expected on a target company?

Accepted Answer

Beyond commercial and legal DD: identification and screening of all UBOs and key personnel against sanctions, PEP and adverse-media data; review of the target's own sanctions / AML compliance history; analysis of customer and supplier exposure to sanctioned jurisdictions; export-control classific...

Question 2

What is "successor liability" and why does it matter to acquirers?

Accepted Answer

Successor liability is the doctrine under which an acquirer can inherit the legal liabilities of the target — including AML, sanctions, and FCPA violations — even when committed pre-acquisition. OFAC has explicitly applied this in enforcement actions. The defensive measure is rigorous pre-acquisi...

Question 3

Are PE / VC firms themselves AML-regulated?

Accepted Answer

In the UK and EU — yes; fund managers and certain advisers are obliged entities under the MLRs / AMLR. In the United States — investment advisers were not historically obliged entities under the BSA, but the FinCEN Investment Adviser Rule (finalised August 2024, effective 1 January 2026) brings S...

Question 4

What is FCPA / UK Bribery Act exposure in M&A?

Accepted Answer

Acquiring a target with a history of bribery or corrupt payments creates direct successor exposure under the US FCPA and UK Bribery Act 2010. Diligence should include third-party agent screening, gift / entertainment policies, government-touchpoint mapping, and red-flag review of any unusual comm...

M&A, private equity & corporate advisory