Which activities are part of Document Due Diligence?

• A. UCC searches, name verification, invoices, OFAC check, KYC process
• B. Tax filings, payroll, internal audits, and client onboarding
• C. Equipment maintenance, shipping, installation
• D. Credit scoring, loan approval

Answer: (A)

Document Due Diligence focuses on verifying the accuracy and authenticity of documents and identifying information before a transaction or relationship is pursued. The listed activities fit this goal: UCC searches check public filings to understand the legal status and any security interests surrounding a party; name verification ensures the entity or individual matches official records, reducing the risk of mistaken identity or fraud; reviewing invoices helps confirm that a billed transaction is legitimate and properly documented; an OFAC check screens against sanctions lists to avoid dealing with prohibited parties; and the KYC process systematically collects and assesses information about the customer to gauge risk and verify identity. Together, these steps are all about handling documentation and identifiers to validate who you’re dealing with and whether it’s safe to proceed. The other options involve operational tasks, internal controls, or lending decisions, which aren’t focused on validating documents and identities in the same way.