Fraud Prevention & Risk Mitigation Directive
Guidelines for identifying non-viable supply structures and protecting principal commodity transactions.
⚠ 1. Unverified Advance Fee Demands
Legitimate commodity sellers or refineries never request upfront payment for administrative, logistics, passport verification, or cargo release before bank instrument issuance. Any advance fee request indicates fraudulent intent.
⚠ 2. Unrealistic Off-Market Fixed Discounts
Bulk elemental sulphur trades track international benchmark pricing (Platts / ICIS). Fixed prices substantially lower than market indexes reflect fictitious supply claims.
⚠ 3. Non-Bank Proof of Product (POP) Transmission
Documents supplied as “Proof of Product” via email, PDF, or non-banking channels without SWIFT MT799/MT760 confirmation carry zero commercial validity in international trade.
⚠ 4. Multilayered Unverified Broker Chains
All buyers must submit verified Client Information Sheets (CIS) and Letters of Intent (LOI) through direct corporate channels to avoid unauthorized intermediary markups.
Counterparty Due-Diligence Checklist
- Confirm corporate registration and operational history.
- Require correspondence from authenticated corporate email domains.
- Match product, logistics and financial capacity to the stated transaction.
- Use bank-to-bank verification for sensitive financial information.
- Reject unclear advance-fee or third-party payment demands.
Need a transaction reviewed before proceeding?
Commercial and compliance inquiries are handled by Chelet Ltd. through its corporate trade desk.