New Delhi, April 11 -- A tightening global sanctions and tariff regime, led by the US, is pushing Indian firms to step up background checks before finalising commercial transactions such as mergers and acquisitions, supply contracts, and trade deals.

According to legal experts that Mint spoke with, companies are increasingly hiring law firms and investigative agencies before closing deals to ensure that none of the parties involved, including subsidiaries, parents or suppliers, feature on sanctions lists.

Clients are now required to sign sanctions standard operating procedures (SOPs) before finalising deals, which mandate disclosures such as ultimate beneficiaries, end-use certificates, and verification of licensed vendors.

The purpose...