Educational tool only. No data stored or transmitted. Not legal or financial advice. Always verify independently before making payments.
Before You Wire the Money — Know Who You're Dealing With
Free supplier due diligence risk checker for SME owners, importers, and freelancers. Answer 8 questions, get an instant risk score and official verification links.
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🔎 Supplier Due Diligence Risk Checker
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1. Who are you dealing with?
Select the type of entity you are about to pay or enter a contract with.
2. Where are they based?
Select the country of registration or primary operations of your counterparty.
3. What industry are they in?
Some sectors carry inherently higher money laundering and fraud risk.
4. How do they want to be paid?
Payment method is one of the strongest fraud indicators. Legitimate suppliers accept standard bank transfers.
5. Can you identify who owns the business?
Beneficial ownership transparency is a core KYC requirement. Hidden ownership is a major red flag.
6. What is their online presence like?
Legitimate businesses leave verifiable digital footprints. A complete absence is a serious warning sign.
7. What documentation have they provided?
Professional suppliers provide proper contracts and invoices. Reluctance to document is a red flag.
8. Any behavioural red flags?
Select all that apply. These are the patterns most commonly seen in supplier fraud cases.
Risk Assessment Result
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Score Breakdown
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What is supplier due diligence and why does it matter? ▼
Supplier due diligence is the process of verifying a supplier's identity, legal status, financial health, and reputation before entering a business relationship or making a payment. For SMEs and importers, it is the single most effective way to avoid advance fee fraud, invoice fraud, and sanctions violations. Banks perform these checks automatically — this tool helps you do the same.
How do I check if a supplier is legitimate? ▼
Start with the official company registry in their country (Companies House for UK, SEC EDGAR for US public companies, GSXT for China). Verify the company name, registration number, registered address, and directors. Then search for them on LinkedIn, Google, and independent review platforms. Finally, check OFAC and EU sanctions lists. Our tool provides direct links to all these sources based on the country you select.
What are the biggest red flags in supplier fraud? ▼
The most reliable red flags are: requests to pay to a personal bank account, requests to pay via cryptocurrency or Western Union, prices significantly below market rate, urgency pressure to pay before you can do checks, refusal to provide a formal contract, no verifiable online presence, and inconsistent details between communications. See our case studies for real-world examples.
What countries are on the FATF grey list in 2026? ▼
As of the June 2026 FATF plenary, the grey list (Jurisdictions under Increased Monitoring) comprises 22 jurisdictions: Angola, Bolivia, Bosnia & Herzegovina, Bulgaria, Cameroon, Côte d'Ivoire, DR Congo, Haiti, Iraq, Kenya, Kuwait, Laos, Lebanon, Monaco, Nepal, Papua New Guinea, South Sudan, Syria, Venezuela, Vietnam, British Virgin Islands, and Yemen. The black list (Call for Action) remains North Korea, Iran, and Myanmar. Always verify at fatf-gafi.org as lists are updated at the February, June, and October plenaries.
Is this tool a substitute for professional due diligence? ▼
No. This tool is for educational and awareness purposes only. It does not constitute legal, financial, or compliance advice. For high-value transactions, regulated industries, or complex ownership structures, always consult a qualified solicitor, compliance professional, or use a commercial due diligence service such as Creditsafe, Dun & Bradstreet, or Bureau van Dijk.
Does this tool store my data? ▼
Your answers never leave your browser. All scoring and logic runs entirely in JavaScript on your device — nothing is transmitted to any server, stored in any database, or shared with any third party. If you have enabled advertising (Google AdSense) or analytics (Google Analytics) on this site, those third-party scripts operate under their own privacy policies and do not receive your questionnaire responses.
How to Check if a Supplier is Legitimate: A Practical Guide for SME Owners
Every year, thousands of small businesses lose money to supplier fraud. The mechanics are almost always the same: a supplier is found online or through a broker, initial contact is professional and reassuring, a deal is agreed, a deposit or full payment is wired — and then the supplier disappears, delivers nothing, or delivers counterfeit goods. Business payment fraud is one of the most frequently reported categories of fraud affecting SMEs; always verify independently and report suspected fraud to your national authority.
The frustrating truth is that most of these losses are preventable. Banks perform Know Your Customer (KYC) checks on every business they onboard. These checks are not secret — they follow a publicly documented methodology. This tool applies the same logic so that any SME owner or importer can assess a new supplier in under two minutes, before any money changes hands.