See the regulatory risk before it becomes deal risk.

Clearhaven helps investors, acquirers and financial institutions understand the regulatory and financial crime exposure inside fintech and crypto businesses.

We identify the issues that could affect valuation, regulatory approval, integration or future growth, then explain what they mean for the transaction.

Regulatory due diligence that follows the business

A regulated status does not tell you how well a firm is run.

Permissions may not cover the full business model. Compliance controls may have fallen behind growth. Safeguarding records may be unreliable. Regulator correspondence may contain unresolved issues that have yet to reach the board.

Our review follows the product, customer journey, funds flow, governance, technology and control evidence. The scope is shaped around the transaction and the decisions that need to be made.

Fintech and payments due diligence

We conduct regulatory due diligence on payment institutions, electronic money institutions, embedded finance providers, digital wallets, remittance businesses, open banking firms and other regulated fintechs.

Our review can cover:

• Regulatory permissions and business activities

• Payment institution and EMI authorisation status

• Regulatory perimeter and unregulated services

• Safeguarding arrangements and reconciliations

• Capital, liquidity and prudential requirements

• AML, sanctions, fraud and transaction monitoring

• Customer onboarding and risk classification

• Consumer outcomes, complaints and disclosures

• Governance and management responsibilities

• Agents, distributors and commercial partners

• Outsourcing and operational resilience

• Regulatory reporting and notification history

• Open regulatory findings and remediation

• Change in control requirements

We focus on the areas most likely to create financial exposure, regulatory delay or operational disruption after completion.

Crypto and digital asset due diligence

Crypto businesses require a different level of scrutiny.

The regulatory position can depend on the assets, services, customers, legal entities and countries involved. A group may hold a registration in one jurisdiction while providing wider services through entities with a less certain regulatory status.

We support due diligence on crypto exchanges, custodians, brokers, wallet providers, trading platforms, stablecoin businesses, token issuers and blockchain-based financial services.

Our crypto regulatory due diligence can cover:

• MiCA and CASP authorisation status

• UK cryptoasset registration and regulatory readiness

• Services provided in each jurisdiction

• Cross-border activity and market access

• Token and cryptoasset classification

• Custody and protection of client assets

• Wallet governance and key management

• AML, sanctions and blockchain analytics

• Source of funds and source of wealth controls

• Crypto transaction monitoring

• Travel Rule compliance

• Market abuse and conflicts of interest

• ICT risk, DORA and operational resilience

• Banking and payment partner dependencies

• Outsourcing and critical service providers

• Regulatory enquiries, investigations and enforcement history

The review gives the transaction team a clear view of where the business stands today and what may need to change under new ownership.

Financial crime due diligence

Weak financial crime controls can create substantial exposure for an investor or acquirer.

We assess whether the firm’s AML and sanctions framework reflects its customers, products, transaction flows and geographic reach. We also test whether the controls described in policies are supported by operational evidence.

This can include:

• Business-wide financial crime risk assessment

• Customer due diligence and enhanced due diligence

• Customer risk-rating methodology

• PEP and sanctions screening

• Transaction monitoring rules and alert handling

• Blockchain analytics and wallet screening

• Fraud controls and account restrictions

• Suspicious activity reporting

• Management information and board oversight

• Quality assurance and independent testing

• Backlogs, control failures and remediation programmes

Where weaknesses are identified, we assess their scale, likely cause and potential effect on the transaction.

Due diligence for investments, acquisitions and partnerships

Clearhaven supports:

• Private equity and venture capital investors

• Strategic acquirers

• Banks and financial institutions

• Fintech and crypto businesses making acquisitions

• Firms entering embedded finance partnerships

• Boards assessing new products or markets

• Legal and transaction advisory teams

Our work can support an initial investment, full acquisition, minority stake, joint venture, commercial partnership or entry into a regulated market.

What you receive

Red-flag review

A focused assessment of the most material regulatory and financial crime risks, completed around the transaction timetable.

Full regulatory due diligence

A detailed review of the target’s regulatory position, governance, compliance framework, control environment and regulatory history.

Clear transaction implications

Each finding is linked to its potential effect on regulatory approval, deal timing, operating costs, integration or future growth.

Management questions

Targeted questions for management, compliance leaders and advisers based on the issues identified during the review.

Remediation assessment

A practical view of the work required, including priorities, dependencies and the resources likely to be needed.

Post-deal plan

A structured compliance and regulatory plan for the first phase of ownership, focused on the risks that need early attention.

How we work

Define the real scope

We identify the products, entities, jurisdictions and regulatory questions that matter to the transaction.

Review the evidence

We examine policies, governance records, regulatory correspondence, management information, customer journeys and control outputs. Interviews with management and key control owners help establish how the business operates in practice.

Explain the impact

Findings are written for decision-makers. The report sets out the issue, supporting evidence, potential exposure and the action required.

Senior practitioners throughout

Our regulatory due diligence is led by senior practitioners with more than 20 years of experience across regulation, industry and consulting.

The team includes former leaders of regulatory units, Heads of Compliance, MLROs, COOs, CEOs and Big Four partners. Our experience includes regulatory supervision, fintech and crypto authorisation, financial crime investigations, complex remediation and large-scale operational transformation.

This allows us to assess the control issue itself and understand what it would take to fix it after the transaction.

Understand the risk before you commit

Tell us about the transaction, the target and the decisions you need to make. We will define a focused regulatory due diligence scope around your timetable.