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3 Suspicious Things to Check before Entering into a Contract with Your Russian Counterparty
October 28, 2020 12:26

(Source: https://cryptoconsulting.info/ru/tag/investment/page/4)

Unlike government agencies, entrepreneurs have a limited set of sources for analyzing contractors. But in most cases, they are sufficient to prevent risks.

1. Lack of personal contacts between the management of the supplier company and the buyer when discussing the terms of delivery and signing contracts.


Lack of contact can be suspicious. Let's say a representative of a company comes to you from Samara. How can you be sure that he is really a representative? To make sure of this, call Samara, check the company, communicate directly with the director, find out if a power of attorney has been issued.

2. Lack of confirmation of the authority of the representative of the counterparty, documents proving his identity.

The head of the counterparty firm has the right to conclude transactions. But his status in the company must be indicated in the documents (order). If the person is not the CEO, then he / she acts by the power of attorney. To verify his authority, copies of identity documents will be required. You can find out the actual place of work by checking his passport through the tax office. You can also use the FMS service to check the validity of his passport.



3. Lack of information about the actual location of the counterparty, as well as about its warehouse, production, retail space, etc.

If a counterparty declares its location and conducts some kind of activity, this does not mean that everything is in order with it. Check Google Maps and find if there is a building of a counterparty’s company there. In order to  confirm your doubts, call the landlord and ask if he knows about the existence of the company.

Sometimes in practice you come across with paradoxical situations when a company is registered in a private apartment and at the same time, according to reports, takes part in large government contracts. It is easy to guess that in the overwhelming majority of such cases, the   scheme of money laundering works.

When working with contractors, you need to keep in mind several nuances. For example, remember that at the time of registration the company, in principle, is not verified by the tax authorities and that there are “windows” during the year when the company may not submit financial statements and work  for some time - until tax authorities pay attention to it. However, the easiest way to check the counterparty's bad faith is to make sure that the legal address is true, and the person who concludes the transaction has full authority to do so.

Russia-IC has developed mechanisms for checking the conscientiousness of counterparties, including inquiries and analysis of the necessary documentation, as well as a study of the Internet environment. We guarantee the reliability and accuracy of the information collected.
 




Author: Anna Dorozhkina

Tags: Check Your Russian Counterparty Russian laws    

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