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When dealing with a foreign business partner: preliminary investigation is essential to avoid fraud, non-payment, or compliance risks. Components include: Commercial Register check (does the company exist?), credit report (financial health), sanctions list screening (UN/EU), UBO check (who are the owners?), identity verification, and optionally a reference check. Costs: €50–€500 per check. For B2B agreements exceeding €25,000: almost always advisable. Below are what to check and which tools to use.
The short answer
- Commercial Register: does the company exist, who are the directors?
- Credit report: financial health and payment behavior.
- Sanctions list: UN, EU, NL — no business with sanctioning parties.
- UBO check: who are the ultimate owners?
- Costs: €50-€500 per check depending on depth.
What to check?
1. Trade Register
- Does the company officially exist?
- Who are the directors and authorized signatories?
- How old is the company?
- Any changes or liquidation?
Different commercial registers per country. EU commercial registers free of charge via the BRIS portal (e-justice.europa.eu).
2. Credit report
- Financial health (annual accounts analysis).
- Payment behavior (overdue payments, bankruptcies).
- Score from credit reference agencies.
- Trend (improving or worsening).
Providers: Dun & Bradstreet, Experian, Creditsafe — costs €50-€500 per report.
3. Sanctions list screening
- UN sanctions (Iran, North Korea, etc.).
- EU sanctions (Russia since 2022).
- Dutch national sanctions.
- US OFAC list (under US aspects).
Sanction hit: do not do business, otherwise Wwft violation and criminal risk.
4. UBO check
- Who are the natural owners?
- No hidden shareholders.
- Connection with sanctioned persons?
- PEP check (politically prominent persons).
5. Identity verification
- Copy of directors' passports with apostille (for non-EU).
- Personal meeting (video or in-person).
- Company visit (for major deals).
6. References
- Existing customers or suppliers.
- Bank references.
- Online reputation (LinkedIn, Glassdoor, Google reviews).
Tools for foreign check
- BRIS portal: EU trade registers, free.
- Dun & Bradstreet: global credit reports.
- Experian / Creditsafe: credit registration.
- WorldCheck: sanctions list + PEP screening (business).
- OFAC portal: free US sanctions check.
- OpenCorporates: corporate data worldwide.
Tune depth
Check level dependent on risk:
- Small contract (€ < 5,000): basic check (commercial register + Google).
- Medium (€5,000-€25,000): + credit report + sanctions screening.
- Large (€ 25,000+): + UBO check + references.
- Strategic partner: + company visit + on-site audit.
What if it were a hit?
- Sanctions list hit: no cases, notification to AML supervision.
- Bad credit: prepayment, L/C, or broader negotiation.
- Unclear UBO: ask further questions, possibly refuse.
- Bad reviews: extra care, smaller initial deals.
Wim's UK check
Wim wants to accept a new UK client (expected turnover € 80,000/year):
- UK Companies House: company has existed for 5 years, 2 directors.
- Creditsafe report: score 78/100, no defaults.
- UK sanctions list (HM Treasury): no hits.
- OFAC check: no hits.
- LinkedIn check directors: legitimate profile.
- Bank reference: positive.
Total cost check: €250. Wim accepts client with standard payment term of 30 days.
Honest recommendation
For international business: preliminary investigation is non-negotiable. An investment of €50–€500 often prevents thousands of euros in non-payment or compliance fines. For recurring international clients: annual repetition. For major deals: extensive due diligence process. Combine with sound payment strategies (prepayment, L/C, credit insurance) for optimal risk management.
For other topics: start exporting, start importing and business translations.
Frequently Asked Questions
Trade Register (does the company exist?), credit report (financial health), sanctions list screening (UN/EU), UBO check (owners), identity verification, and references. Level depends on deal size.
€50-€500 per check. Trade Register often free (EU via BRIS). Credit report €50-€500 (Dun & Bradstreet, Experian, Creditsafe). Sanctions screening and UBO check included in business subscriptions.
Small contract (< € 5,000): basic check. Medium (€ 5,000-€ 25,000): + credit + sanction. Large (€ 25,000+): + UBO + references. Strategic partner: + company visit + on-site audit. Scale with risk.
BRIS portal (EU trade registers, free), Dun & Bradstreet or Creditsafe (credit), WorldCheck (sanctions + PEP), OFAC portal (US, free), OpenCorporates (corporate data worldwide).
Do not do business — AML violation if proceeding. Notification to the supervisory authority. In case of suspicion: additional investigation by a compliance officer or legal counsel. Be careful with indirect links (UBO of partner potentially a sanction hit).
Do not automatically refuse — discuss payment terms: prepayment (strongest), Letter of Credit (bank guarantee), shorter installments, or smaller initial deals. Credit insurance for large amounts.
For every new partner. For existing partners: annual review (sanction situations change, financial position fluctuates). In the event of a change in the board or UBO: new check.
