TOOLS · buyer-supplier-risk

Buyer Verification Self-Audit

Step-by-step verification checks → readiness score.

Answers (JSON)

What this tool does

This self-audit measures how thoroughly your organization verifies new buyers before extending credit or shipping goods. You answer 12 yes-or-no questions covering corporate identity, beneficial ownership, sanctions screening, adverse media, creditworthiness, and ongoing monitoring. The tool returns a percentage score and flags specific gaps that increase your exposure to fraud, non-payment, or regulatory penalties.

The output is a remediation plan ranked by risk severity. Items tied to sanctions compliance appear first because violations carry strict liability in most jurisdictions. Credit and reputational checks follow. You can use the results to prioritize process improvements, justify budget requests for screening tools, or document due-diligence procedures for auditors and insurers.

Who should use it

Trade-finance leads, AR managers, credit controllers, and compliance officers at exporting companies should run this audit quarterly or whenever onboarding procedures change. It is equally relevant for trading houses that buy and resell commodities, because a defaulting buyer can strand cargo and create working-capital gaps. Freight forwarders and customs brokers extending payment terms to shippers will also find the checklist useful for benchmarking their own KYB controls.

Inputs

Corporate registry verification: Indicate whether you confirm the buyer's legal existence through an official registry (e.g., Companies House, SEC EDGAR, local chamber of commerce) before first shipment.
UBO identification to 25% threshold: Indicate whether you identify all natural persons holding 25% or more ownership, directly or indirectly, and record their names and nationalities.
OFAC SDN screening: Indicate whether you screen the buyer entity and each identified UBO against the U.S. Treasury OFAC Specially Designated Nationals list at onboarding.
EU CFSP and UK OFSI screening: Indicate whether you also screen against the EU Consolidated Financial Sanctions List and the UK Office of Financial Sanctions Implementation list.
Adverse media search: Indicate whether you run a structured search for negative news coverage (fraud allegations, insolvency filings, executive indictments) using a commercial database or defined keyword protocol.
Credit report or trade-credit score: Indicate whether you obtain a third-party credit report or trade-credit score (Dun & Bradstreet, Creditsafe, Coface, or equivalent) before setting a credit limit.
Bank reference or payment-history check: Indicate whether you request a bank reference letter or verify payment history with at least one existing supplier.
Address and contact validation: Indicate whether you verify the buyer's physical address and primary contact through independent means (utility bill, site visit, or video call with geolocation).
Sanctions re-screening frequency: Indicate whether you re-screen existing buyers against sanctions lists at least once per quarter or upon list updates.
Credit-limit review cadence: Indicate whether you review and, if necessary, adjust credit limits at least annually based on updated financials or payment performance.
Adverse-event trigger policy: Indicate whether you have a documented procedure to freeze shipments or credit when a buyer is added to a sanctions list, files for insolvency, or accumulates significant overdues.
Record retention for five years: Indicate whether you retain onboarding documentation (registry extracts, screening results, credit reports) for at least five years to satisfy audit and regulatory requirements.

Assumptions

The audit assumes that a "yes" answer means you have a documented, repeatable process, not a one-time or ad-hoc check. If your team screens sanctions lists manually by copying names into the OFAC search portal, that still counts, but the tool cannot measure accuracy or completeness. Automated screening platforms reduce human error and are strongly recommended for high-volume operations.

The 25% UBO threshold aligns with FATF guidance and the EU Anti-Money Laundering Directives. Some jurisdictions impose a 10% threshold for certain industries. If your regulator requires a lower threshold, treat a "yes" as meeting the stricter standard.

Limitations

This tool does not verify whether your answers are accurate. It cannot audit your actual files or test whether your sanctions-screening provider is current. The score is only as reliable as your self-reported inputs.

The checklist does not cover export-control classification (EAR, ITAR, EU Dual-Use Regulation) or end-use verification. If you ship controlled goods, you need a separate compliance workflow. The tool also does not address supplier or sub-contractor due diligence, which involves distinct risk factors.

How results are calculated

Each of the 12 questions carries equal weight. A "yes" adds one point; a "no" adds zero. Your score is the sum divided by 12, expressed as a percentage. A score of 100% means you answered "yes" to all items. A score below 50% indicates significant gaps.

The remediation plan sorts unanswered items into three tiers. Tier 1 (critical) includes sanctions-screening questions because OFAC, EU, and UK regulators impose strict liability, and penalties can exceed the value of the underlying transaction. Tier 2 (high) includes UBO identification and adverse-event trigger policies, which affect both compliance posture and credit risk. Tier 3 (moderate) includes credit reports, address validation, and record retention, which are important but less likely to result in regulatory enforcement.

The tool does not assign dollar-value risk estimates because exposure depends on transaction size, buyer geography, and your existing insurance coverage. Use the tier ranking to sequence remediation efforts.

Sources and data freshness

Last data refresh: 2026-05-05.

Disclaimer

This self-audit generates an indicative score based on your inputs. It does not constitute legal, compliance, or financial advice. Sanctions regulations change frequently, and enforcement varies by jurisdiction. Before relying on any screening result or credit decision, verify current list versions with the issuing authority and consult qualified legal counsel if your buyer operates in a high-risk jurisdiction or industry.