Avoid Known Criminals when working with Foreign Investors

Yes, it needs to be said. But when there are large sums of money under discussion, many people begin to look for rationalizations.

If your foreign investor is a known criminal, you are likely to have problems with your attorney and your bank. Attorneys are prohibited from assisting a client to commit a crime or fraud. Similarly, bankers have due diligence requirements that are likely to discover if your investor is a known criminal. You can avoid these problems with ordinary business practice.

While it is not always clear who is a "known criminal" when working with foreign investors, a starting point in due diligence is the U.S. Department of the Treasury on its Specially Designated Nationals List (“SDN List”).

Avoid the easy problems.

Good luck out there!