Fraudulent schemes in public procurement
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How to protect yourself from unfair customers and suppliers

Any company of any field of activity and size can face the fraud in public procurement. Despite the detailed regulation of procurement, as well as criminal liability under the article on fraud, there is still a wide variety of schemes both among customers and suppliers.
Commercial due diligence must be exercised to avoid fraudulent procurement. The Information and Analytical System Globas helps to identify signs of shell companies and unreliable organizations, as well as to analyze a bulk of public procurement and commercial tenders, and to conduct detailed study of the documentation for each submitted procurement.
Let's consider five popular fraudulent schemes, and Globas tools that will help protect against them.

1. Fake auctions

A fictitious company registers on an electronic platform and organizes a bidding procedure in the form of an auction. To apply for participation in the selection of a supplier or become a potential supplier in the procurement under the Federal Law 223-FZ, it is necessary to make a contract security. The amount of security should not exceed 5% (the Decree of the Government of the Russian Federation of December 11, 2014 No. 1352 “On the specifics of the participation of small and medium-sized businesses in the procurement of goods, works, services by certain types of legal entities”). Fraudsters can directly contact the procurement participants and request security in the amount of more than 5% of the lot value. Once security funds are received, the auction is cancelled.

How to identify fake auctions

Globas contains a large number of public procurement and commercial tenders. Searching by tender number, you can check its existence, status, and security amount. If the amounts of the security do not match, then any contacts with the person demanding money must be stopped. In addition, before making a security, it is necessary to check the potential customer: the duration of the company, the accuracy of information, legal proceedings, etc. If a risk is identified, Globas will display it in the form of special factors.

2. Fake tenders on behalf of a large company

Fraudsters send out invitations to participate in the tender, for example, on behalf of JSC GAZPROM or Russian Railways. The tender itself on the website of the Unified Information System (EIS) or on the electronic trading platform may not exist. In the invitation, fraudsters offer to participate in the tender, while indicating that in case of payment for participation or making a commission for concluding a contract, participation as a supplier is guaranteed. After receiving the money, the scammers disappear. This scheme is the most popular and is constantly being improved. Now fictitious customers invite to participate in real tenders created on behalf of large companies. However, dummy details (bank accounts, phones, e-mail) are given.

How to identify fake tenders

In Globas, in addition to information on procurement, accompanying documents are also added: contracts and all procurement documentation. In order not to fall into a fraudulent scheme, it is enough to verify the registration data from the customer with the data in Globas. In case of difference in contact details, registration data, subject of procurement, cooperation with a potential customer must be terminated.

3. Transfer of security to a "transit" current account

Fraudsters conduct a commercial tender, which provides for the security of the bid. However, the money is offered to be transferred not to an account on the electronic trading platform, but to the customer's settlement account. After the due date for submitting bids is expired, the customer disappears and no longer gets in touch. And the supplier loses money.

How to avoid a transfer to a "transit" account

Thanks to the documents for the tender or procurement, which are available in Globas, it is possible to determine where the customer wants to receive the security. If the information card contains the settlement account and not the account of the electronic trading platform, then most likely the customer will collect security from all participants, cancel the purchase and disappear.

4. Fake supplier

The supplier offers the goods at a low price, the customer, wanting to save money, makes a deal and pays for the goods, or transfers an advance, and the supplier disappears with the money.

5. Buying an additional certificate

A potential supplier is invited by e-mail to participate in the tender or procurement. In case of interest, in a response letter, the supplier will be asked to send a commercial offer. After 2-3 days, the scammers contact the supplier and inform that one's offer was the most profitable and ask for a set of documents necessary to participate in the tender or procurement. However, among the well-known list of documents, a certificate is mentioned, without which it is impossible to conclude an agreement. After the potential customer finds out that the certificate is missing, they offer to make it for an additional fee. After receiving the money, the scammers disappear or send a document that does not meet the standards of the official certificate.

How to identify fake suppliers and customers

Globas will help to check the reliability of a counterparty: assess risks according to more than 350 criteria and prepare compliance reports; receive official extracts (EGRUL, EGRIP, GIR BFO, RSMP, etc.). Do not neglect public comments that Globas users leave on unreliable counterparties, as well as feedbacks on the Internet. A potential supplier or customer can always be checked for negative feedbacks.


Check of counterparties in Russia and around the globe

Globas helps to analyze business partners, minimize commercial, tax, and sanctions risks, relieve the experts conducting inspections from routine, 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.

What does 2023 hold for business?
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In 2023, the amendments to the legislation, significantly affecting the Russian business, will come into force. First of all, these amendments are caused by the sanctions pressure and the desire of regulators to ensure stability in all sectors of the economy. The measures, in particular, will affect the taxation, procurement, control and supervision activities, and licensing.
Sanctions compliance is also firmly established in the activities of Russian companies: corporate rules and regulations are being introduced into business processes to help reduce the risk of violating sanctions restrictions. Large-scale sanctions, the recognition of states as "unfriendly", the complication of the structure of settlements with foreign partners - all these force business owners to explore new markets. There is a global reorientation towards the East and the Near Abroad. At the same time, there is a growing need for check of foreign partners before concluding international contracts.
Understanding the needs of the business, Credinform experts have developed a unified assessment of cooperation risks for reports on foreign companies, which takes into account such important facts as status, field of activity, financial condition, inclusion in the sanctions lists and more. You can check a foreign partner for possible risks by sending a request on office@credinform.ru or order a report in Globas.

Moratorium on inspections continues

The mode of canceling scheduled business inspections will be extended to 2023 (Government of the Russian Federation of October 1, 2022 No. 1743). The exemption applies to organizations the facilities of which are classified as of moderate, medium and significant risk, however, this moratorium does not apply to tax audits: they will be carried out in accordance with the approved plan.
In addition, if there is a threat to the life or health of citizens, they can be unscheduled inspected, and, at the request of the business owner, be the subject to a preventive visit. The main difference between a visit and an inspection is that for visit there are no fines or punishments based on the results of such a measure. The main purpose of such measures is to prevent the commission of offenses.
Information on the results of inspections can show how the company meets certain requirements in the course of business activities. You can analyze the results of scheduled and unscheduled inspections, as well as preventive measures in Globas, where the relevant information will be displayed, if violations were detected or warnings were announced.

Restriction on disclosure of "sensitive" information

The Government of the Russian Federation has extended for six months the effect of the regulation on protecting companies from sanctions pressure: companies will still have a right not to disclose annual and interim consolidated financial statements, as well as audit reports and explanatory notes (Decree of the Government of the Russian Federation dated December 8, 2022 No. 2249). Previously, the rule was limited to December 31, 2022.
Also, until July 1, 2023, the right of banks not to disclose corporate information that is sensitive to sanctions risk is extended. (Decision of the Board of Directors of the Bank of Russia dated December 23, 2022). Such information includes: reorganization of the company, shareholding structure, management, controlling persons, significant facts affecting financial and economic activities.
All information containing in Globas fully corresponds to the information that is open for publication by official resources. The publication of hidden data is a direct violation of the legislation of the Russian Federation and entails the imposition of an administrative fine.

Conflict of interest is not of interest

Conflict of interest in procurement arises when self-interest prevents a tender from being conducted in good faith and transparency.
From January 1, 2023, the requirements for procurement participants in terms of conflicts of interest are expanding (Federal Law dated June 11, 2022 No. 160-FZ). The amendments specify that the representatives of the customer, as well as their relatives, are prohibited from being:
  • tender participants, including as an individual entrepreneur or self-employed person;
  • shareholders or executives of the supplier;
  • beneficiaries of the procurement participant owning more than 10% of the shares or stakes of the company.
To assess the possibility of a conflict of interest at the initial stage of the procurement, you can use Globas, the possibilities of which make it possible to compile a dossier on each of the applicants, including information on the composition of the shareholders and executives.
The functionality of Globas User Lists allows to identify direct and indirect connections with employees, and the Links tool allows to build a chain of affiliation to the ultimate beneficiary.

New terms for the publication of open data by the Federal Tax Service

The Tax Service has adjusted the procedure for posting public data on companies on its official website (Order of the Federal Tax Service of Russia dated September 13, 2022 No. ED-7-14/830@).
Starting April 1, 2023, no later than the 25th of every month, data on the amounts of debts in payment of taxes, fees and insurance premiums as of the first day of the month of placement will be published. Information on special tax regimes will also be posted at the same time. Previously, information on arrears and debts on penalties and fines was published once on December 1 of each year, and tax regimes - on August 1.
Data on the average number of employees of the company for the calendar year will be published on April 1, 2023, then every month, on the 25th. A set of open data on the amounts of income and expenses for the year will be prepared by May 1, but in the future it will also be published monthly, the publication date is the 25th.
The terms for publishing information about participation in a consolidated group of taxpayers and about tax offenses will remain the same. They will also be placed on August 1 and December 1, respectively.
As the Federal Tax Service publishes open data, they will be added to Globas, so that you do not miss essential information and always know whether the counterparty is meeting its tax obligations.


Check of counterparties in Russia and around the globe

Globas helps to analyze business partners, removes routine work from specialists conducting checks, and uses only reliable and official sources of information.