As global sanctions tighten, particularly from the US, Indian firms are ramping up their due diligence processes to avoid dealing with sanctioned entities. Legal experts indicate that companies are increasingly engaging law firms and investigative agencies to conduct thorough background checks before finalizing any commercial transactions, including mergers, acquisitions, and supply contracts. Clients are now required to adhere to sanctions standard operating procedures (SOPs), which necessitate disclosures about ultimate beneficiaries and verification of licensed vendors. This heightened scrutiny aims to prevent complications such as frozen assets and blocked payments, especially amid geopolitical tensions like the Russia-Ukraine war. Tarun Bhatia, managing director at Kroll, notes that companies are now conducting sanctions checks on major vendors pre-transaction and implementing third-party diligence programs post-transaction. Law firms like Khaitan & Co and Lakshmikumaran & Sridharan are reporting increased demand for their services as businesses seek to navigate complex sanctions environments. Industries such as chemicals, petrochemicals, and finance are notably impacted, with firms establishing systems to enhance procurement processes and mitigate risks associated with sanctioned entities.