Legal identity
Confirm legal name, registration, jurisdiction, address, corporate status and activity. A website, email account or letterhead is not a substitute for an official registry.
Commodity Knowledge Centre
Counterparty & Authority
Identify each legal party, who controls it and who genuinely has authority to sell, buy, represent or bind the transaction.
Core verification controls
Treat each control as a separate evidential question. A credible transaction should remain coherent when the documents, parties and physical sequence are tested together.
Ownership and control
Identify the UBO and control structure where material. Compare corporate records with KYC/KYB, sanctions, PEP screening and unexplained opacity.
Signatory authority
Test office, powers of attorney, board resolutions, delegations or signing rules. A visible signature does not itself establish authority to bind the company.
Mandate and representation
Define exactly what the mandate authorises, who issued it, its term, product, territory and powers. A seller mandate does not prove title, product or delivery capability.
Chain to title holder or buyer
Map every intermediary and remove links that add no verifiable authority. The chain should reach the party controlling the commodity or the funds.
Operational capability
Compare track record, infrastructure, finance, people, licences and commercial footprint with the scale and complexity of the proposed transaction.
Evidence that should exist
- Current official company registry evidence.
- Ownership/control information and relevant screening.
- Power, resolution or other signatory-authority evidence.
- A verifiable mandate with precise scope and authenticable issuer.
- A documentary chain connecting counterparty to title/product or buyer/funds.
Red flags requiring escalation
- Multiple contacts who will not identify the principal.
- Generic mandates with no term, scope or issuer-verification route.
- Free email accounts or newly created domains used for critical transaction roles.
- Directors, UBOs or signatories that change or cannot be reconciled with official records.
- Pressure for passports or sensitive KYC before reciprocal authority has been established.
Verification sequence
- Resolve legal identity and jurisdiction.
- Identify ownership, control and signatories.
- Authenticate powers and mandates with the issuer.
- Trace representation to product or funds.
- Assess capability and issue a counterparty/authority risk conclusion.
Decision output
Record what is confirmed, what remains unverified, the residual risk, the conditions precedent and one explicit decision state.
GO
Evidence supports proceeding.
CONDITIONAL GO
Proceed only after stated conditions are satisfied.
HOLD
Pause until material evidence is obtained.
NO-GO / STOP
Risk or missing evidence makes continuation indefensible.
Frequently asked questions
Does a seller mandate prove the seller has product?
No. At most it may evidence a representation relationship if authentic. Title and product availability require separate evidence.
Can a transaction involve several intermediaries?
Yes, but every link adds risk and should have a defined function, authority and audit trail. If the chain prevents access to the principal, verifiability deteriorates.
Why does the UBO matter?
It helps establish control, conflicts, sanctions exposure, reputation and who ultimately stands behind the entity. For material transactions it is part of KYB and risk analysis.
Continue the verification
Use this module together with the other Commodity Knowledge Centre controls and the MGS DD1/DD2/DD3 methodology. If a real transaction requires review, start with a preliminary assessment before committing to a full mandate.