risks of doing business with bad companies

[mrhertman]

Hey guys,
lets say you doing business with some company for long term. And then suddenly its flagged for shady activity.

Is there risk for your company being flagged as well? Simply because you worked with them long term and received payments. Obviously they would have payments to other companies as well, not only to you.
What are the risks and what is wise to be done in order to protect yourself?

 

[Martin Everson]

mrhertman said:
Is there risk for your company being flagged as well?
Click to expand...

Yes.

mrhertman said:
What are the risks and what is wise to be done in order to protect yourself?
Click to expand...

If your not a Microsoft or Amazon level company then the risk is your company could end up guilty by association and put into WorldCheck database alongside offending company. This would end your relationship with any financial institution that uses that system....which is an awful lot. So do appropriate KYC and due diligence for any business partner. Understand their business model, source of money and activity and have it documented somewhere at the very least. This won't stop you from being blacklisted in WorldCheck but it could stop you from getting into personal trouble especially if U.S gets involved.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JohnnyDoe]

Until WorldCheck is banned as every corrupt organization should (which will never happen), it is better you prevent the issue by using disposable persons and companies.
The real risk in business is not encountering a bad actor but being listed on WorldCheck.

Toggle signature

@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[EliasIT]

mrhertman said:
Is there risk for your company being flagged as well?
Click to expand...

they will investigate your company and if they find the slightest evidence that you didn't play by the rules they will take your company down.

Toggle signature
If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.