Why Compliance Due Diligence Matters
In the commodities trading industry, your trading partner's compliance standards directly impact your own regulatory exposure. A single transaction with a non-compliant counterparty can result in regulatory penalties, frozen assets, reputational damage, and loss of banking relationships.
This checklist provides a framework for evaluating potential commodities trading partners before establishing a business relationship.
The Compliance Checklist
1. KYC/AML Framework
Does the firm have a documented KYC/AML policy?
Is KYC verification mandatory for ALL clients regardless of size?
Do they have a named compliance officer or team?
How often are existing clients re-screened?
What happens when a client fails KYC verification?
2. Sanctions Screening
Do they screen against OFAC, EU, UN, and other relevant sanctions lists?
Is screening done manually or with automated technology?
How frequently are screenings updated?
Do they screen beneficial owners, not just entity names?
What technology do they use? (e.g., ComplyAdvantage, Refinitiv, Dow Jones)
3. Source Verification
Can they document the origin of every commodity they trade?
Do they source from certified mines/producers?
Are their sources conflict-free?
Do they comply with OECD Due Diligence Guidance?
Do they adhere to LBMA Responsible Sourcing standards (for precious metals)?
4. Chain of Custody
Do they provide chain-of-custody documentation with every shipment?
Can they trace material from mine/source to delivery?
Are logistics providers vetted and documented?
Is inventory tracked through bonded/insured facilities?
5. Documentation Standards
Do they provide assay certificates for every batch?
Are material safety data sheets (MSDS) included?
Do they maintain audit-ready records?
How long are transaction records retained?
Can they provide documentation on demand for regulatory inquiries?
6. Regulatory Compliance
Are they registered in a well-regulated jurisdiction?
Do they comply with applicable anti-money laundering laws?
Have they ever been subject to regulatory action?
Do they file Suspicious Activity Reports when required?
Are their employees trained on compliance procedures?
7. Technology & Infrastructure
Do they use AI-powered compliance tools?
Is their screening process automated or manual?
Do they have secure data handling and storage?
Can they integrate with your compliance systems?
How Integrity Global Trade Scores
At Integrity Global Trade & Commodities Corp, we check every box on this list:
KYC/AML: Mandatory for every client, no exceptions
Sanctions Screening: ComplyAdvantage AI, real-time, all major lists
Source Verification: 100% from UN Certified, Environmental Impact Certified mines
Chain of Custody: Complete documentation, mine to delivery
Documentation: Full assay certificates, MSDS, compliance records
Regulatory: Registered in Wyoming, USA; full AML compliance
Technology: ComplyAdvantage AI-powered screening
Use this checklist to evaluate your commodities trading partners. Contact Integrity Global Trade for a compliance-first trading relationship backed by $3 billion in closed contract volume.