Confirm the legal entity
Obtain the exact registered name, number, jurisdiction and registered address. Compare official registry information with the contract, website, email domain and documents received. Note recent incorporations, changes of directors, overdue filings or inconsistencies that require explanation.
Verify the people involved
Confirm each person’s role and authority using independent contact information. A professional profile or business card is not proof of employment or mandate. Where appropriate, arrange a video meeting, contact the company through a separately sourced channel and request a board resolution, power of attorney or mandate that can be authenticated.
Examine digital identity
Check whether the email domain matches the company, when the domain was created and whether messages suddenly move to free email accounts. Look for copied websites, altered contact details and domain spellings designed to resemble a legitimate business. Do not use contact information from the questioned document as the only verification route.
Understand the mandate chain
Map every intermediary and identify the principal able to make the commercial commitment. Ask what each party is authorised to do, how authority was granted and whether the principal recognises the chain. Excessive layers increase the possibility of miscommunication and unauthorised promises.
Screen the transaction context
Sanctions, politically exposed persons, adverse media, beneficial ownership, product origin, vessel history and jurisdictional risk may all matter. Screening should reflect the actual transaction, not only the company name. Similar names and incomplete identifiers require human review.
Match contract, bank and performance
The contracting party, invoice issuer, beneficiary account and performer should form a coherent structure. Investigate third-party payment instructions and last-minute changes. Verify bank details independently and ensure the proposed procedure makes commercial and operational sense.
Keep verification ongoing
Counterparty risk does not end when the contract is signed. Recheck material changes, maintain an evidence trail and pause when new people, accounts, documents or procedures appear. Verification is strongest when it is treated as a continuing control rather than a one-time formality.
Simlar Energy performs initial opportunity and authority checks as part of facilitation. Principals should commission independent legal, compliance, financial and operational due diligence appropriate to their transaction.