Checking companies with limited information disclosed using Globas
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The best way to avoid debts, litigation and reputation problems is to enter into agreements with reliable counterparties.
Before signing an agreement with a business partner, you must carefully check all available information on it and assess risks.
The main steps are:
  • request registration information
  • analyze financial statements
  • check management and shareholders
  • confirm the fact of carrying out financial and economic activities
  • verify business reputation
Compliance with the requirements of the Federal Tax Service in the matter of commercial prudence allows for a high-quality audit of the counterparty.
Registration information will show that the company is officially registered in the Unified State Register of Legal Entities. Analysis of financial statements will reveal the financial condition of the company. Checking management and shareholders can reveal disqualification, false records data, legal proceedings and debts. Confirmation of the fact of carrying out financial and economic activities and verification of business reputation will protect against additional charges, on-site tax audits and close attention from the Federal Tax Service.
However, during verification, difficulties may arise due to circumstances such as:
  • period of activity of the company
  • information with limited access for third parties, according to the law

Main challenges during verification

Challenges in verification may arise due to lack of information. In some cases, the first reporting period for newly incorporated companies may occur only after 1 tax period. That is, the first information about the financial condition begins to appear only 1.5 years after the start of activity.
In addition, there is little information on business reputation for newly incorporated companies. There can be no reviews in the public domain, the company may not participate in arbitration proceedings, in public procurement and commercial tenders . It is difficult to determine the nature of economic relationships and the business policy of a company. When independently checking such companies, it is necessary to turn to a large number of sources, since there is no consolidation of data in a single space.
Information disclosed to a limited extent also causes inconvenience. Due to sanctions pressure, companies are actively hiding information about managers, shareholders and current financial statements.
In accordance with Decree No. 1624 of the Government of the Russian Federation dated September 16, 2022 and Decree No. 903 of the President of the Russian Federation dated November 27, 2023, companies can completely close access to financial data or independently determine the amount of disclosed information. And based on Subpara. 3, Para. 1, Art. 6 of the Federal Law dated 08.08.2001 No. 129-FZ “On state registration of legal entities and individual entrepreneurs” information from the Unified State Register of Legal Entities may be disclosed to a limited extent.
It turns out that for such categories of companies most of the basic verification steps cannot be carried out. This gives rise to threats to miss important information about risks.

Globas solutions

The Information and Analytical System Globas will help overcome above mentioned challenges. Globas allows you to conduct an in-depth check of any counterparties using an extensive number of sources and analytical sections.
1. Assessment of newly incorporated companies through the method of formation and analysis of the business environment
Globas allows you to determine how the company was formed and automatically checks affiliated entities and individuals. You can evaluate the company’s immediate environment through the Link map, the list of Affiliated and Subsidiary companies, by management and ultimate owners.
If the company is associated with unscrupulous and unreliable persons, it is undesirable to cooperate with such counterparties. There is a high risk of attracting the attention of the Federal Tax Service, damaging your reputation, or receiving fines and legal proceedings due to a lack of commercial diligence.
2. Checking newly incorporated companies in negative registers, among participants in arbitration cases and enforcement proceedings
The Information and Analytical System Globas automatically checks organizations and persons against 55 negative lists. If a person is on the negative list, Globas will display this information in the appropriate section and on the Summary page.
In addition, the analysis of arbitration cases in a company profile provides statistics of the company’s participation in arbitration cases as a defendant or plaintiff over the entire history of the company, check the nature of the disputes, and also assess the claim burden. And enforcement proceedings will show the level of non-execution of decisions on a voluntary basis.
If a newly incorporated company is on the Register of Unfair Suppliers, tax debtors, does not fulfill obligations to partners or neglects the decisions of authorized bodies, it is worth refraining from cooperation.
3. Checking companies with limited information disclosed
Globas contains a deep archive of information. In cases where a company limits access to its current data, the information presented in Globas is marked as archived and continues to be available for users.
Sanctions compliance using Globas: Top 5 questions about counterparty check
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Modern business is constantly exposed to global financial and political risks, which can have a serious impact on its operating activities. In a dynamic geopolitical environment, sanctions are becoming an integral part of international relations. The practice of their use continues to develop, countries are introducing counter-sanction measures, creating a complex network of restrictive measures. For businesses, this means the need of sanctions compliance and regular monitoring of counterparties.
To fully understand the situation, it is necessary to study many documents, the regulatory measures of different countries and organizations, and also understand the importance of sanctions checks and potential threats.
Information Agency Credinform answers Top 5 questions about the sanctions screening.

1. Who should check their counterparties for sanctions?

The question of who should be responsible for sanctions screening is relevant for all companies, especially for those engaged in the international trade, foreign economic activity and financial transactions. These are banks, financial institutions, exporting and importing companies, participants in global supply chains, as well as branches of foreign companies.

2. Why it is necessary to screen counterparties for sanctions?

Such check is not only a legal requirement, but also a necessity to reduce risks. Violation of sanctions can lead to serious consequences, including fines, loss of reputation, and sometimes criminal liability.
The need to comply with sanctions measures of the UN Security Council and special economic measures (SEM) of Russia is enshrined at the legislative level in the Russian Federation. The Federal Law No. 422-FZ dated August 4, 2023 created a set of tools for sanctions regulation, established liability measures for legal entities, introduced the concept of a “blocked person,” etc.

3. Where to find a unified database of sanctions lists from all over the world?

Unfortunately, there is no single database containing information about sanctions lists from all over the world. Sanctions data is distributed across various sources. Within the same country, restrictions may be set by different authorities, and information about them may be presented in different formats. Information and Analytical system Globas is a resource that brings together various sources of information on global sanctions and tracks list updates in real time. Sanctions Compliance, a module of Globas, provides opportunities for comprehensive check of counterparties for sanctions and risk assessment, including reconciliation with the consolidated register of restrictive measures adopted by various countries and organizations.

4. What are the consequences of refusing to check counterparties for sanctions?

Failure to undergo a sanctions check can lead to serious consequences for the company. Firstly, this threatens financial losses in the form of fines, secondary sanctions and other restrictions. Secondly, this can negatively affect the company’s reputation and lead to loss of trust from clients and partners. Moreover, violation of sanctions may cause a risk of criminal liability for company management.

5. How to facilitate the process of checking counterparties for sanctions risks?

Automation of sanctions check of counterparties can significantly simplify and speed up this process. The use of specialized software solutions, such as Sanctions Compliance in Globas, makes it possible to automate the monitoring of sanctions lists, receive notifications of new sanctions and adapt risk strategies to the specific needs of the company.
Sanctions Compliance in Globas contains detailed information on sanctions and restrictions, including the 50 Percent Rule, as well as additional sources and more in-depth analysis of companies, persons and objects that are subject to restrictions.
Compliance with sanctions is not only a legal requirement, but also a strategic necessity for business in today's globalized world. Proper verification of counterparties for sanctions helps reduce risks and ensure the stability of the company’s operations. With specialized instruments such as Sanctions Compliance in Globas, this process becomes more efficient and transparent.


Sanctions Compliance

Sanctions Compliance provides an opportunity to check Russian and foreign companies, persons, water and air transport. Persons associated with companies are also checked: beneficiaries, owners, managers, affiliates and subsidiaries. The module contains extensive information about the imposed sanctions and restrictions, including the 50 Percent Rule, additional sources and deeper analytics on companies, persons and objects that have fallen under restrictions and in various risk registries.