In today’s critical compliance requirements, information appears more accessible than ever before, yet in practice it is often more restricted, fragmented, and difficult to interpret in a tangible way. Across Europe in particular, evolving data protection frameworks such as the GDPR, and increasingly stringent privacy regulations have fundamentally changed how personal and corporate information is stored, shared, and accessed. While these developments play a vital role in safeguarding individual rights, they have also introduced new challenges for organisations seeking to conduct thorough, defensible, and commercially relevant due diligence.
It is now increasingly common for key information to be anonymised, redacted, or simply unavailable through traditional channels, leaving gaps that cannot be filled through database searches or desktop research alone. As a result, one of the most valuable and reliable sources of insight: Human Interaction is returning to the forefront of modern due diligence: character references (Industry Insights).
At a time when due diligence is automated by AI, here are 6 reasons why character references still matter:
1. The Shift: From Data Availability to Data Limitation
Due diligence processes rely heavily on documented evidence such as corporate filings, litigation records, regulatory disclosures, and media reporting, all of which are cross referenced through established databases and screening tools. While these sources remain an important foundation, they may no longer provide a sufficiently nuanced picture of risk, particularly in jurisdictions where transparency is limited or where privacy laws restrict access to sensitive information.
We are increasingly faced with redacted records, reduced access to legal and regulatory data, and limited visibility into an individual’s professional conduct or reputation. This creates a critical gap between what is formally recorded and what is actually experienced in practice, particularly when assessing how individuals behave in real world business environments. References play a crucial role in bridging this gap, providing insight that extends beyond documentation into lived experience.
2. What Can Character References in Due Diligence Reveal That Data Cannot
Effective due diligence is not solely about verifying facts but about understanding behaviour, intent, and consistency over time. Character references offer a unique window into how individuals operate professionally, providing context that cannot be captured through structured data or automated analysis.
Through direct, human led engagement, it becomes possible to explore
- how an individual makes decisions under pressure,
- how they interact with colleagues and partners, and
- whether their professional reputation aligns with their documented history.
These conversations often uncover real behaviours around integrity, reliability, and ethical judgement, as well as early warning signs of reputational or operational risk that may not yet be reflected in public records.
These are the factors that frequently determine the long term success or failure of a business relationship, yet they remain largely invisible within traditional due diligence frameworks.
3. Why Multiple Sources Matter During Reference Checks
The value of a character reference lies not only in the insight it provides, but in how that insight is validated and contextualised. A single reference can offer perspective, but it is only through multiple, independent viewpoints that a truly reliable and balanced assessment can be formed.
At TenIntelligence, we typically seek to obtain between three to five independent character references, ensuring that feedback is gathered from individuals who have interacted with the subject across different roles, environments, and time periods. This approach allows for the identification of consistent behavioural patterns, the validation of key themes, and the mitigation of individual bias.
By speaking with a range of sources, whether they are former colleagues, business partners, clients, or even competitors, we are able to build a more complete and credible picture of an individual’s professional conduct, one that reflects not just isolated experiences but sustained behaviour over time.
4. Human Intelligence in Practice
Character references are, by their very nature, dependent on human intelligence. They cannot be automated, standardised, or meaningfully replicated through artificial intelligence alone.
While AI driven tools can efficiently surface data points and identify potential red flags, they lack the ability to build rapport, ask instinctive follow up questions, or interpret the subtleties of tone, hesitation, and emphasis that often define the most revealing industry insights interviews. The most valuable intelligence frequently emerges not from what is explicitly said, but from how it is said and what is left unsaid.
Our experienced investigators understand how to navigate these conversations with discretion and precision, identifying the right sources, approaching them in a manner that encourages openness, and probing beyond surface level responses to uncover deeper context. They are also able to cross reference these insights with other intelligence, ensuring that findings are both robust and defensible. This is what transforms raw information into meaningful, decision ready intelligence.
5. Character References in High Risk and Cross Border Contexts
The importance of character references becomes even more relevant in high risk and cross border scenarios, where formal information may be incomplete, unreliable, or intentionally obscured. In such environments, reputation is often understood locally but not formally documented, making it difficult to assess credibility through conventional means. This is why it requires more than just investigative methodology. Cultural intelligence plays a crucial role in completing a comprehensive background check to interpret what is said, what is withheld, and what is considered significant within a specific cultural and professional context.
Whether assessing individuals in high risk jurisdictions, evaluating complex corporate structures, or conducting senior level vetting for investors and executives, character references provide critical insight into factors that are otherwise difficult to access. This is particularly relevant in cases involving politically exposed persons or markets where regulatory oversight and public reporting may be limited.
Without this layer of human source intelligence, organisations risk making significant decisions based on partial or misleading information.
6. From Compliance Exercise to Strategic Insight
Character references are too often viewed as a supplementary step within the due diligence process, something to be completed as a formality rather than leveraged as a strategic tool. In reality, they should be considered a core component of due diligence, particularly in higher risk scenarios where understanding behaviour and reputation is just as important as verifying facts.
When approached properly, character references provide validation of documented information, enable the early identification of reputational concerns, and support more confident decision making in high value and high stakes situations. They also offer a level of insight that strengthens long term partnerships by ensuring alignment not just on paper, but in practice.
Working With TenIntelligence
In an environment where access to information is increasingly constrained and risk is greater than ever, organisations need more than surface-level checks, they need insight that is grounded in experience, context, and human judgement.
At TenIntelligence, our Due Diligence approach combines traditional intelligence sources with human-led enquiries, including carefully sourced character references that provide a deeper, more accurate understanding of the individuals behind business decisions. By engaging multiple, independent sources across different stages of a subject’s career, we deliver balanced, defensible intelligence that goes beyond what is available on record.
Whether you are assessing a potential partner, investor, or senior hire, or navigating a high risk or cross border transaction, our team works discreetly and globally to provide the clarity and confidence required to make informed decisions.
If you would like to discuss how character-led intelligence can strengthen your due diligence approach, we would be happy to arrange a conversation.
In an increasingly anonymised world, trusted human insight remains one of the most powerful tools available for making informed, confident, and responsible business decisions.
Written by
Tim Minchin | Operations Manager
FAQs on Character References in Due Diligence
What are the best practices for obtaining character references in high-risk jurisdictions?
In high-risk or cross-border jurisdictions, including parts of the GCC, MENA, and emerging markets reputation is often understood locally but not formally documented. Best practice involves identifying sources with direct professional exposure to the subject across different roles and time periods, approaching them with discretion, conducting conversations through investigators who understand local context and communication norms, and triangulating multiple independent viewpoints to distinguish consistent patterns from individual opinion.
How do character references fit into an enhanced due diligence framework?
In an enhanced due diligence framework, character references serve as an important layer of intelligence that goes beyond standard screening.. They are deployed when the stakes are high, the subject is complex, formal records are limited, or initial screening has returned ambiguous results. They validate or challenge what is on record, provide behavioural context that data cannot, and enable more confident decision-making in high-value or high-risk scenarios.
How many character references should be obtained in due diligence?
Best practice is to obtain between three and five independent character references for any significant due diligence subject. These should span different roles and time periods in the subject’s career to identify consistent behavioural patterns rather than isolated experiences, and to mitigate individual bias from any single source.