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A Due Diligence Policy sets out the steps an organization takes to assess and manage risks before entering business relationships or transactions. In Qatar, these policies help companies comply with Law No. 20 of 2019 on Anti-Money Laundering and key QFC regulations by establishing clear procedures for verifying business partners, investments, and transactions.

The policy typically outlines specific checks required for different risk levels, documentation standards, and reporting processes. It guides staff through crucial verification steps like confirming ownership structures, checking sanctions lists, and validating source of funds - helping Qatari businesses protect themselves from legal, financial, and reputational risks while meeting their regulatory obligations.

A Due Diligence Policy becomes essential when your organization starts new business relationships in Qatar, particularly with high-value transactions or international partners. Companies operating under QFC regulations need this policy before onboarding clients, entering joint ventures, or making significant investments - especially in sectors like real estate, financial services, or construction.

The policy proves vital during mergers and acquisitions, when vetting potential suppliers, or establishing partnerships with foreign entities. Qatar's strict anti-money laundering requirements make this policy particularly important for financial institutions and designated non-financial businesses when taking on new customers or engaging in cross-border transactions.

• Basic Compliance Due Diligence: Focuses on fundamental regulatory checks required by Qatar's AML laws, typically used by smaller businesses and standard transactions
• Enhanced Due Diligence Policy: More rigorous verification procedures for high-risk relationships, required by QFC-regulated entities and financial institutions
• Industry-Specific DD Policy: Tailored for sectors like real estate or construction, incorporating sector-specific risk factors and compliance requirements
• Transaction-Based Policy: Designed for specific deal types like mergers or joint ventures, with detailed verification steps for complex business arrangements
• Integrated Corporate DD Policy: Combines multiple risk assessment areas, including financial, legal, and operational due diligence in one comprehensive framework

• Compliance Officers: Lead the development and implementation of Due Diligence Policies, ensuring alignment with Qatar's AML regulations and QFC requirements
• Board Members: Review and approve policies, ensuring they meet corporate governance standards and risk management objectives
• Legal Teams: Draft and update policy content, incorporating regulatory changes and specific Qatari legal requirements
• Department Managers: Execute due diligence procedures and maintain required documentation for their business units
• External Auditors: Review policy implementation and compliance during regular audits, particularly for QFC-regulated entities
• Business Development Teams: Apply policy requirements when vetting new partners and opportunities

• Risk Assessment: Map your organization's specific risk areas under Qatar's AML laws and QFC regulations
• Industry Requirements: Gather sector-specific compliance obligations and standard verification procedures
• Internal Processes: Document existing verification workflows and identify gaps in current due diligence practices
• Stakeholder Input: Collect feedback from compliance, legal, and business teams on practical implementation needs
• Documentation Standards: Define required records, storage methods, and retention periods
• Review Procedures: Establish clear escalation paths and approval processes for different risk levels
• Technology Integration: Consider available screening tools and compliance software capabilities

• Purpose Statement: Clear objectives aligned with Qatar's AML laws and regulatory framework
• Scope Definition: Specific business activities and transactions requiring due diligence checks
• Risk Categories: Detailed classification of low, medium, and high-risk relationships under QFC guidelines
• Verification Procedures: Step-by-step processes for identity verification and background checks
• Documentation Requirements: Mandatory records and retention periods per local regulations
• Reporting Mechanisms: Clear procedures for suspicious activity reporting to Qatar authorities
• Review Process: Regular policy update requirements and compliance monitoring procedures
• Responsibility Matrix: Defined roles and accountability for due diligence tasks

While both documents support regulatory compliance, a Due Diligence Policy differs significantly from a Compliance Policy. Understanding these differences helps organizations maintain proper risk management and regulatory adherence in Qatar.

• Scope and Focus: Due Diligence Policies specifically outline procedures for investigating business relationships and transactions, while Compliance Policies cover broader regulatory obligations across all operations
• Implementation Timing: Due diligence procedures typically occur before entering new relationships or transactions, whereas compliance requirements apply continuously
• Risk Assessment Approach: Due Diligence Policies emphasize investigative procedures and verification steps, while Compliance Policies focus on ongoing monitoring and adherence to regulations
• Documentation Requirements: Due Diligence Policies mandate specific verification records and findings, while Compliance Policies track broader regulatory adherence and internal controls
• Regulatory Context: Due Diligence Policies align closely with Qatar's AML laws, while Compliance Policies address multiple regulatory frameworks simultaneously