Conflict of interest: how to prevent risks using Globas
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Conflict of interest is an important and often overlooked issue that many businesses face. Conflict occurs when an employee's personal interests conflict with the company's interests, which can lead to unethical practices and corruption. Understanding how to identify and manage such conflicts is a key to maintaining a healthy work environment and business stability.

Checking whether an employee has a business: direct and indirect ownership

The first step in avoiding conflict of interest is to verify that a potential employee has their own business. This may include both direct and indirect ownership. Direct ownership means that the employee formally owns the business, while indirect ownership can be through beneficial ownership in other companies, or through trustees and relatives.
If there is direct or indirect participation in a legal entity, it is necessary to check the status of such organizations, whether they are in the process of liquidation, reorganization, bankruptcy or termination of activity. You should also check the person for being a shareholder or a manager in multiple entities. However, it is important to take into account that the Federal Tax Service does not currently maintain a register of companies that have a “manager in multiple entities” or a “shareholder in multiple entities” attribute. According to the Federal Tax Service, participation of a person in several legal entities in itself does not indicate a violation of legal requirements. In this case, it is recommended to study them separately to assess the risks when choosing counterparties.
You can check direct and indirect ownership, as well as establish connections between different persons using Globas. The Individual Profile provides detailed information about the requested person participating as a manager or a shareholder of legal entities as well as data on indirect beneficial ownership. And with the help of Links, Globas will help to clearly establish a chain of relationships between the requested person, his or her relatives and related parties.

Checking tax number (INN), debts and fines

When checking data on a person’s tax number (INN), you must perform the following steps:
1. Make sure INN is correct and up to date
Invalid or incorrect INN can lead to negative consequences for the company and its counterparties, especially if a potential employee is being considered for a management position.
2. Check if a person is registered as self-employed
Regular monitoring of employees’ self-employed status is necessary to avoid additional assessments of contributions and personal income tax. Self-employed employees may be unscrupulous, for example, they often do not provide checks. In such cases, you can contact the Federal Tax Service directly. In other controversial situations, you should apply to a Court of General Jurisdiction, since the Arbitration Court does not consider disputes with self-employed people.
3. Check whether there are interim measures of the Federal Tax Service regarding movable and immovable property
These measures are taken to preserve the taxpayer's property, which can be used to pay off tax debt. If a potential employee has such restrictions, it may indicate financial problems or significant tax debts, which in turn may affect his or her reliability and business reputation.
4. Check the suspension of account transactions, tax debts, court debts, fines and state duties
This checking is necessary to obtain a complete picture of the financial condition and legal status of a potential employee. This data allows you to assess the possible risks associated with hiring and to understand how reliable and conscientious the candidate is. For example, significant debts or fines may indicate candidate's financial difficulties, which could negatively impact their performance and ability to make responsible decisions, while legal debts may indicate legal problems that could affect the company's reputation or create additional risks.
Globas allows you to check the tax number (INN) for invalidity, determine the status of a self-employed person, and also receive statements about the presence of interim measures, suspension of account transactions, tax and court debts, fines and state duties.

Checking arbitration cases, enforcement proceedings and cases in Courts of General Jurisdiction

Checking arbitration cases, enforcement proceedings and cases in Courts of General Jurisdiction when hiring personnel is critical for the following reasons:
1. Identification of legal problems: Checking legal cases reveals whether a candidate is involved in legal disputes. These may include civil suits, commercial disputes and other legal proceedings that affect its work and reputation.
2. Financial reliability: Arbitration cases and enforcement proceedings often involve financial obligations, such as debts and outstanding loans, which may indicate financial instability of a candidate and potential risks for the company.
3. Ethics and integrity: Litigation, especially involving fraud, breach of contract, or other unethical practices, may indicate a candidate's lack of integrity.
4. Potential Conflicts of Interest: Candidate's participation in litigation may create conflict of interest, especially if the cases involve current or potential partners of the company. This situation may affect employee's impartial decision-making.
5. Reputational risks: Candidate's participation in legal disputes can negatively affect the company's reputation, especially if he or she holds a management position or is associated with key projects. Check allows you to avoid hiring employees who could damage the business reputation of the company.
In Globas you can order extracts of a person for the purpose of being wanted for enforcement proceedings or suspicion of committing crimes, check the existence of any enforcement proceedings, as well as study arbitration cases and general jurisdiction cases with the possibility of obtaining detailed information about each case and relevant court decisions.
Conducting such checks allows the company to make informed hiring decisions, reduce legal and financial risks, and maintain a high level of trust and transparency in the team.

Searching for information about an employee in official registers

Searching for information about an employee in official registers is also an important step in preventing conflicts of interest. Check is necessary to comply with a number of legal norms, primarily 115-FZ, to ensure security and reduce the company’s risks. Main lists and registers that are important to consider when conducting a check:
  • lists of terrorists and extremists;
  • lists of foreign agents;
  • sanctions lists;
  • persons dismissed due to loss of confidence;
  • disqualified persons;
  • unfair suppliers.
With Globas you can conduct a thorough check for the presence of the requested person in such lists, taking into account both the exact and possible matches of the person’s full name with the list.

Monitoring and surveillance

One of the main tasks is to minimize the risks associated with conflict of interest when hiring new employees. To achieve this, it is important not only to carefully select and check candidates, but also to introduce systematic monitoring of existing employees.
Regular employee monitoring using Globas helps maintain transparency and quickly respond to changes that may indicate a conflict of interest. Creating lists to monitor key employees and setting up automatic alerts allows the employer to promptly identify potential risks and take the necessary measures.
Globas provides unique opportunities for searching and analyzing information about potential and current employees. Access to official registers and databases allows you to obtain reliable data on the business activities of individuals and legal entities, which makes the verification process more accurate and efficient. Globas allows you not only to identify direct connections between an employee and a business, but also to detect hidden interests that may pose a threat to the company.


Quick check of a business partner, contractor or applicant from reliable sources

Check is carried out in accordance with the law. Official information sources are used. An extensive list of parameters is examined: validity of passport and TIN; judicial and extra-judicial bankruptcy; prohibitions and restrictions on business activities; self-employed status; pledges; tax and judicial debts, fines; participation in arbitration processes; check in the records of courts of general jurisdiction; bringing to subsidiary liability; criminal investigation and much more.

Checking counterparties from the UAE. Globas solutions
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The Russian economy is actively reoriented to the East; this direction is becoming increasingly strategically significant and important.
Many entrepreneurs see the United Arab Emirates as an area of new opportunities for business expansion and investment. However, before deciding to cooperate with a company from the UAE, it is necessary to conduct a thorough check to ensure the reliability and legality of the partner’s activities.
The UAE is actively developing cooperation with Russia, including not only economic ties, but also interaction in strategically important areas such as high technology and energy.
In 2023, trade turnover between Russia and the UAE reached $10.2 billion in comparison to $9 billion in 2022. Russian export increased by 12.7% and reached $9.8 billion, import increased by 50.8% and reached $400 million.
On January 1, 2024, the UAE officially became a member of BRICS, which further strengthens economic cooperation between our countries.

Due diligence when checking a UAE company

Cooperation with an unfair counterparty can lead not only to financial losses, but also to damage to the reputation of your company. This is especially dangerous in conditions of active entry into new international markets.
When checking a counterparty from the United Arab Emirates, it is important to carefully study all aspects and comply with the requirements of the legislation of the Russian Federation. Let's take a look at the key ones:
1. Collection of general information
Registration data and licenses: obtaining information about the legal status of the company, UAE tax registration number (when registering an organization, a unique 15-digit code is issued) and registration date. It is also necessary to check the availability of a license. Companies in the UAE cannot conduct any activity without a license.
Contact details: checking the relevance of the address, telephone and email.
There are more than 40 free economic zones (FEZ) in the UAE, offering attractive conditions for investors, including low taxes, no customs duties and a high level of confidentiality. To conduct business, companies are required to obtain an appropriate license, which may be related to trade, production, services or e-commerce. As a rule, the license period is 12 months with the possibility of annual renewal.
Each FEZ maintains its own register of residents, access to which may be limited. Companies are not required to disclose their financial statements, which creates additional difficulties when checking counterparties.
Common forms of organizations include:
  • FZE (Free Zone Entity or Free Zone Establishment) – legal entity with one shareholder;
  • FZC or FZCO (Free Zone Company) – legal entity with the number of founders from one to fifty.
2. Financial condition
The financial stability of the company lies in the absence of debt to the budget and other counterparties. When checking, it is necessary to determine the presence of lawsuits and claims, cases of administrative, subsidiary or criminal liability, arrest of property and tax debts.
To reduce the risks linked to cooperation with an unreliable counterparty, it is worth requiring your partner for constituent documents, which indicate the details of the company’s shareholders, as well as a certified list of shareholders.
3. Assessing information about beneficiaries
It is not possible to verify this data through publicly available online sources. To clarify the data of shareholders and management companies, it is necessary to contact the official UAE government authorities or relevant agencies.
4. Goodwill and history
To obtain the maximum amount of information, it is recommended to turn to feedbacks from real partners of the company and study the recommendations of clients and counterparties. This will help you get a complete picture of its goodwill and reliability.
If a company has had litigation or been involved in negative activities, this information will highly likely be found in local news and information sources. Studying these sources will help you learn about problems or incidents related to that company.

Minimizing the risks of cooperation with UAE companies with Globas

Conducting an independent audit of a UAE counterparty is a complex procedure that requires attention, time and a good understanding of the law. To achieve maximum results, it is recommended to involve specialists with relevant skills and experience.
The Information agency Credinform and the Information and Analytical system Globas will help solve the problems of due diligence when checking international business partners, including those from the UAE. Credinform is a leading provider of economic information on companies from around the world.
In Globas you can obtain online information about companies in Belarus, Kazakhstan, Kyrgyzstan, Latvia, Moldova, Tajikistan, as well as generate a report on over 489 million companies from Europe, America, Africa and the Asia-Pacific region. This report will include information on registration, financial statements, shareholders, beneficiaries and all the basic information necessary to make an informed decision.
For a more detailed and thorough check, you can order an offline report. Your request will be processed by a team of skilled experts with extensive experience and specialization in the field. You will receive comprehensive information, including registration data, financial statements, ownership structure taking into account international connections, expert assessment, as well as check of links and affiliations with Russian companies.


Credit reports on 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.