Counterparty Verification
Every counterparty is screened before any introduction, any pricing, or any name exchange. This is the gate that keeps the market's worst actors out of your deal — on both sides.
The Problem
Petroleum trading attracts operators who look like real counterparties but aren't. We see the same patterns over and over:
Intermediaries with no product, no buyer and no mandate — they pass introductions and collect fees for nothing.
Allocation letters, refinery contracts and terminal access claims that were never issued by anyone.
Bank comfort letters and statements no bank ever issued, used to look ready to pay.
Upfront "registration", "compliance" or "due diligence" fees that take your money and vanish.
Company numbers, VAT IDs and domains that look legitimate and check out nowhere.
Layer upon layer of intermediaries, each hiding the real counterparty and adding nothing.
In this market, an unverified introduction isn't a shortcut — it is the scam. That is why we never make one.
The Difference
Our Standard
This is the full pre-deal checklist applied to every buyer and seller, without exception. Any single red flag pauses the process; certain flags end it permanently.
A Non-Circumvention & Non-Disclosure Agreement is signed first — no counterparty name is shared with anyone until this is signed and on record.
Every individual and entity is checked against the OFAC SDN list plus EU, UK and UN consolidated lists. Any hit stops the process.
Product origin and route are reviewed for any Russian-origin exposure. That is a hard red line for us, not a negotiable term.
If any government official or state-linked entity is involved, an anti-bribery review happens before anything advances.
Company registration, directors and UBOs are verified against official registries (Companies House, KVK, ACRA, state SOS and equivalents) — never through contact details the counterparty supplied.
The Buyer Information & Requirement Form captures role, product, volume, delivery and financial capability in one structured intake.
US-based payees complete a W-9 so commission payments are reported properly.
Only after both sides pass do we move to commercial documents (CIS, LOI, CI, POP) and the deal procedure.
The Screen
Built from a documented track record of vettings and kills, these are the patterns that separate real counterparties from props.
How to read this: flags marked AUTO-KILL close a counterparty permanently on confirmed evidence — no further requests, no document exchange. All others pause the deal pending review. A single red flag overrides any positive score.
"Urgent", "final notice", "only N spots left" in the first contact. Pressure tactics are how fraud gets past your guard.
A Gmail, Proton or Yahoo address for a corporate entity. Real companies use their own domain; a consumer inbox means no verifiable company.
Domain registered within the last six months, or a claimed corporate domain that still serves a registrar parking page. New domains plus big claims equal a credibility prop.
No verifiable company registration, or a registration that fails an official registry check. Core identity cannot be established.
Sellers must meet the principal on camera; buyers should be able to put the decision-maker on a call. Refusal hides identity.
A reversed sequence that harvests KYC or hides the lack of product. Documents are confidential, not brochures.
Claims of a direct allocation from a major national oil company with no verifiable proof. A signature 419 / allocation-fraud claim.
The same email text arriving from different names. That is an organized fraud ring running multiple personas.
Iranian, North Korean, Syrian, Crimean, Russian-linked or other sanctioned involvement. Zero tolerance — it kills the deal and the business.
"Registration costs", "due diligence deposits", "compliance fees". Advance-fee fraud, classic. We never pay or charge them.
Tank-to-tank delivery insisted on with no verified terminal access and no alternative procedure (FOB/CIF/DAP). No real product, no real tank.
A LinkedIn mutual connection with a confirmed fraud node. Multiple kills on record from this single check.
A company or VAT number that fails the official registry or VIES check. Fabricated corporate credentials are an auto-kill.
Requesting SCO / FCO / ICPO before providing any KYC. SCOs are confidential, not brochures.
Claiming 10 to 19 years of operating history while the domain or entity is months old. A direct contradiction means fabricated history.
Three or more intermediary layers where each layer adds no value and hides the real counterparty.
The Checklists
Seven points for buyers, seven for sellers. "Verified" always means confirmed against an official registry or institution via its published channels — never through contact details the counterparty supplied.
Company registration
Certificate of incorporation and current registry extract, matched exactly against the official registry.
Director & UBO identification
Passports and proof of address for all directors and owners above 25%, matched to registry filings.
Bank reference / proof of funds
BCL, RWA or bank statement from a named, regulated bank — confirmed with the bank on its published switchboard.
Mandate authorization
Intermediaries must name the end buyer and hold a verifiable mandate; chains are capped at two links.
Past transaction history
At least one completed deal with an independently reachable reference that confirms it.
Company footprint
Domain age, corporate email, a site with substance, and a credible LinkedIn history. No footprint, no intro.
Sanctions & AML screen
Zero hits on OFAC, EU, UK and UN lists, with no sanctioned-jurisdiction involvement and PEP screening.
Company registration
Certificate of incorporation and current registry extract, verified in the official registry of the country of incorporation.
Director & UBO identification
IDs matched to registry filings and to the actual person on the video call.
Proof of product allocation or title
Allocation letter from a named refinery, producer or NOC, confirmed with that principal via its published channels.
Past transaction history
At least one completed physical deal with an independently verified reference.
Tank / storage verification
Any TTT claim requires terminal operator confirmation, Q88 or storage agreement — verified directly with the terminal.
Sanctions & AML screen
Zero hits on all sanctions lists, plus EU VAT verification via VIES. Invalid VAT or registration numbers are an auto-kill.
Video call with the principal
Mandatory, non-negotiable: a live camera-on call with the named principal, face matched to passport, documents shown on screen.
Non-negotiable: no video call with the principal, no deal. No exceptions.
The Result
Counterparty names never cross until the NCNDA is signed and vetting is complete on both sides. Your identity and your deal stay protected.
Buyers with a completed intake package get an initial price view within 24 hours of review.
EN590 10ppm and Jet A1 backed by a T1 refiner programme — FOB multi-port (Rotterdam, Houston, Jurong, Fujairah and others), Platts-linked pricing, dip & pay, at major independent terminals (Vopak, VTTI, Royale).
LOI + CIS to CI to POP to dip & pay. A typical timeline of around three weeks from LOI to transfer, on a programme scale with trial lifts available as a lead-in.
55 verified supplier companies identified across crude oil, EN 590, Jet A1 and D1/D2 gasoil — from T1 refiners to multi-product trading desks.
Typically 0.5% to 2% of transaction value from the seller side, collected when the cargo changes hands. Current programme: EN590 $5.00/MT, Jet A1 $1.00/bbl. No upfront fees, ever.
FAQ
The BIRF is the Buyer Information & Requirement Form. It captures who you are (company, role, jurisdiction), what you want to buy (product, specification, volume, delivery port) and how you intend to fund the purchase, in one structured document. Every buyer completes it before any supply-side details are shared.
CIS stands for Commercial Information Sheet — a company summary that establishes who the trading entity is. LOI stands for Letter of Intent — a non-binding document confirming a buyer's intent to purchase under stated terms. Both are standard, non-binding opening documents; binding documents come later in the sequence.
The buyer inspects the product in the tank (a dip test confirms quantity and quality) and pays against the inspected product. Payment happens after independent inspection, never before.
Buyers with a completed intake package (NCNDA, KYC, BIRF) get an initial price view within 24 hours of their package being reviewed.
No upfront fees to anyone, ever. Our fee is a commission on closed deals only — typically 0.5% to 2% of the transaction value, collected when the cargo changes hands. On the current EN 590 and Jet A1 supply programme it is a fixed fee per tonne and per barrel.
Commission per closed deal, typically 0.5% to 2% of transaction value from the seller side, payable when the cargo changes hands. The current programme structure is EN590 $5.00 per metric tonne and Jet A1 $1.00 per barrel. No upfront fees, no charges for introductions.
The price is benchmarked to published Platts assessments at the time of loading, plus or minus an agreed differential — so both sides can see the market reference the deal is priced against.
No. BarrelDirect is a brokerage, not a bank. We do not provide escrow, guarantees or financing, and we do not guarantee that any deal closes. We verify, match and coordinate; the deal itself is between the buyer and the seller.
Get Verified
Every counterparty starts with our NCNDA, then the relevant intake form. Expect a review within 24 hours of a complete package. No upfront fees at any stage.
Prefer email? Write to joey.roberts@barreldirectllc.net and we'll send the right forms.