Checking foreign partners in Globas
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In today's business, the verification of counterparties is an integral component of safe cooperation. It plays a key role in ensuring risk minimization and protecting the interests of the company. It is especially important to check counterparties in situations where new business cooperations are being considered abroad, international transactions are planned, or entry into new markets with the construction of alternative supply chains.
Unscrupulous counterparties can pose a serious threat to business and entail financial losses and reputational damage. Preliminary verification helps to avoid undesirable consequences and reduce the risks of cooperation with unreliable partners.

New markets and partners

The current geopolitical situation and sanctions pressure from the United States, the European Union, the United Kingdom and their political allies against Russia have had a significant impact on business in the country. Companies have faced restrictions not only at the individual level, but also in entire sectors of the economy. This forced Russian business to rethink its foreign economic strategy, rebuild supply chains and actively develop parallel import mechanisms.
Many Russian companies are actively developing their ties with new markets, such as China, India and the UAE. These countries have become attractive partners, offering new opportunities for cooperation and business expansion.
In addition, Russian business is actively strengthening its ties with the markets of the CIS countries, such as Belarus, Kazakhstan, Kyrgyzstan, etc. These countries play an important role in partnership with Russian companies, and strengthening business relations with them is an integral part of establishing strong cross-border trade ties.
The conclusion of an international agreement opens up not only the prospects of obtaining profitable deals, but also involves a number of threats and risks:
  • increased attention of tax, customs and regulatory authorities;
  • possible delays and violations of the terms of delivery of goods;
  • difficulties in bringing an unreliable partner to responsibility for non-fulfillment of obligations;
  • a more costly arbitration process, especially in the case of a dispute in a foreign court;
  • differences in legislation if the law of another country was chosen;
  • differences in business customs and practices;
  • additional risks associated with the application of sanctions.
Sanctions undoubtedly create challenges and restrictions for Russian business, but at the same time, they stimulate it to innovate, diversify and search for new opportunities. Business in Russia is actively adapting to the new reality and striving for sustainability, developing links with diverse markets around the world. However, it should be borne in mind that international cooperation, from the point of view of verifying reliability and compliance procedures, poses even greater risks than local cooperation. Therefore, the verification of foreign partners is an integral and extremely important stage in the process of building relationships for future cooperation.

Features of checking foreign partners

When checking foreign partners, the same basic principles of compliance are applied as when checking Russian companies. An important aspect is access to information about the company. In a number of countries, business information is publicly available and can be obtained from government registries or commercial databases. However, in some countries, access to this information may be restricted or requires certain procedures. In addition, when checking foreign counterparties, attention should be paid to the peculiarities of international law and possible sanctions restrictions.
When checking foreign partners, it is necessary to pay attention to the following aspects:
  • verify the actual existence of the counterparty, as well as check its legal status and official registration in the relevant foreign registry;
  • check executives, shareholders and officials with a sign right;
  • conduct a study on the number of employees. This information will help to assess the size of the company and its resources, as well as confirm the possibility of fulfilling obligations under the proposed transactions;
  • to study information about the financial condition. This will allow us to assess financial stability and the ability to fulfill obligations, as well as identify potential risks;
  • check for fines and participation in legal proceedings;
  • to analyze judicial practice and other mechanisms for resolving disputes that may arise in the process of cooperation. This will help to anticipate possible risks and identify effective dispute resolution strategies;
  • check the company and its associated persons for entry into the sanctions and negative lists.
The main aspects described above are important components of checking the reliability of foreign partners. They help to minimize financial risks and create a basis for successful cooperation. However, it is worth noting that conducting such a check by yourself may present certain difficulties and require specialized knowledge.
Credinform and the Globas Information and Analytical System will help you solve these problems.
In Globas, you can get online information about companies from Belarus, Kazakhstan, Kyrgyzstan, Latvia, Moldova, Tajikistan, as well as get online report for 450 million companies from Europe, America, Africa and the Asia-Pacific region. The online report will include financial statements, archival information, shareholders and beneficiaries.
You can also order an offline report as part of a thorough check of a foreign partner. The offline report will be compiled by a team of professional experts with extensive experience and specializing in this field. You will receive comprehensive information, including registration data, financial statements, ownership structure, risk assessment, as well as verification of links and affiliations with Russian companies.


Credit reports for foreign companies

Thanks to a wide network of partners, Credinform provides information about legal entities and entrepreneurs around the world on all continents: from multinational corporations to offshore companies and individual entrepreneurs. To verify the solvency of the company, to identify the owners or to check the fact of registration in an offshore zone – our experts will provide comprehensive information and a competent resume.

Bankruptcy Fraud: types, liability
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The bankruptcy process is the only legal way to liquidate a company in a difficult financial situation. It allows to fully or partially pay off debts to creditors. Bankruptcy of a company is a complicated and uneasy process during which not only the debtor suffers, but, first of all, the company's creditors. The risk of non-repayment of funds increases many times over.
As a rule, insolvency may occur as a result of circumstances or unsuccessful business activities. In this case, the circumstances may be different: financial or global crisis, sanctions, natural disasters, pandemic, etc. But sometimes, such circumstances are created intentionally in order to avoid the legitimate satisfaction of creditors' claims. For example, fictitious transactions are concluded, property is alienated, documents are forged, or a number of deliberate actions or omissions are carried out on key issues that negatively affect the company's solvency. The main goal is to illegally obtain the company's assets, avoid tax payments and defraud creditors.
According to the signs, there are two types of bankruptcy fraud: fictitious bankruptcy and premeditated bankruptcy. Official receivers are responsible for identification of the fraud signs. They analyze decisions made by the company's management, as well as determine the nature of transactions and assess performed actions. The results of investigations are recorded in the reports of official receiver.
Fictitious bankruptcy is a deliberately false announcement by the CEO or shareholder of the insolvency of the company. In truth, the company has assets level necessary to fulfill the obligations.
Premeditated bankruptcy is a deliberate commission by the CEO or shareholder of actions, as a result of which the company cannot fulfill the payment obligations and satisfy the claims of creditors.


According to the Russian laws, the following consequences occur in case of detecting the signs of fictitious or premeditated bankruptcy:
  • administrative liability in the form of fine;
  • disqualification of management for the period from 6 months up to 3 years (Art. 14.12 of the Code of the Russian Federation on Administrative Offenses)
  • initiation of a criminal case with a fine in the amount of 100 thousand to 300 thousand rubles;
  • imprisonment for up to 6 years (Art. 196 of the Criminal Code of the Russian Federation “Deliberate bankruptcy”, Art. 197 of the Criminal Code of the Russian Federation “Fictitious bankruptcy”).
If the debtor-legal entity is unable to meet its obligations to creditors, the controlling persons will have to pay within the framework of subsidiary liability or indemnification.
In addition, counterparties may also be subject to disciplinary measures. For example, recognition of completed transactions as invalid, prosecution in the form of fines, disqualification, exclusion from the Unified State Register of Legal Entities and criminal liability. Also, it is essential to recall that the main risk for counterparties of a company declared insolvent, is the loss of funds.
It is important to provide Customer Due Diligence check to avoid negative consequences. Information and Analytical system Globas helps to detect signs of shell and unreliable companies.
Let's examine the cases when Globas will help to identify a future bankrupt, detect signs of premeditated or fictitious bankruptcy, as well as determine the personal liability of the company, CEO, shareholder in a bankruptcy case.

Identification of facts of violations of the legislation of the Russian Federation

Availability of facts of violation of the legislation may change the opinion on a counterparty and the strategy of interaction in contractual liabilities. There is a risk of repeated breaching the law by a person previously brought to liability for violation. Corporate regulations of many companies contains a clause on inadmissibility of cooperation with companies associated with violations of the laws of the Russian Federation.
When analyzing a business partner in Globas, information on bringing to administrative or criminal liability and participation in legal proceedings is automatically displayed on the main page or in the sections in the single-window mode.

Background for future bankruptcies

Combination of the following factors may point at the problems with solvency of a legal entity. After a while they can become a catalyst for bankruptcy.
  • decrease in the company's liquidity;
  • worsening the financial conditions based on the analysis of ratios;
  • increase of the number of arbitration cases on disputes related to the fulfillment of obligations;
  • emergence of active writs of execution on overdue debts, taxes and payroll;
  • reduction of tax burden;
  • liabilities exceeding assets;
  • losses of previous years;
  • increase in debt load.
Globas check a counterparty for availability of these factors in an automated mode. Globas indexes allow to determine the current liquidity level and general financial condition of a company. "Signs of a shell company" index helps to reveal the degree of proximity of the analyzed company to an unreliable one. Counterparties having problems with the payment discipline can be identified using the Arbitration and Enforcement proceedings section. Cases with the category of improper performance of obligations will help to identify the overdue accounts payable. The Analytical Financial Report will show the results of financial and economic analysis and inform on the presence of losses of previous years, decrease in solvency and increase in the company's debt load.

Bankruptcy and damage to creditors

Irrational decisions and unreasonable contracts can lead to premature liquidation of the company due to insolvency. However, after the commencement of bankruptcy proceedings, an inspection will be carried out in relation to the management, all persons controlling the debtor and counterparties with whom contracts were concluded. The official receiver will check for signs of premeditated or fictitious bankruptcy and determine the persons responsible for causing damage to the company. If the fault is proved, the persons controlling the debtor will be brought to subsidiary liability or compensation for damages. Moreover, in case of detection of unreasonable transactions, part of the liability may pass to counterparties.
Globas contains the entire information on entrepreneural activities of a person and involvement in business. In addition, information from related sources is analyzed and compared. Globas will show a warning marker about bringing a person to liability in a bankruptcy case, calculate the amount of joint liability, show notifications from the Unified Federal Bankruptcy Register and the arbitration case related to this event.
Also, if signs of premeditated or fictitious bankruptcy are detected, Globas will show information in the form of factors requiring attention and a report of the official receiver in the form of a notification from the Unified Federal Bankruptcy Register.


Check of counterparties in Russia and around the globe

Globas helps to analyze business partners, minimize commercial, tax, sanctions risks, removes routine work from specialists conducting verification, and uses only reliable information from official sources. If you are not yet Globas subscriber, apply for trial access and check if there are unreliable counterparties in your portfolio who are not going to fulfill their obligations.