Corporate Identity
Verify registration, directors, corporate domain, physical contact details and the authority of the person presenting the offer.
Risk mitigation
Fraud Prevention & Transaction Red Flags
Institutional guidance for identifying non-viable petroleum coke offers, fictitious allocations and unauthorized intermediary structures.
1. Advance Fee & Allocation Charges
Requests for upfront payment described as allocation reservation, port storage, vessel insurance or administrative release before proper banking and contractual verification are a major red flag.
2. Unrealistic Off-Market Fixed Pricing
Petroleum coke transactions are influenced by recognized market assessments, product quality and logistics. Fixed pricing materially disconnected from prevailing market conditions should trigger enhanced due diligence.
3. Unverified Proof of Product
Unsolicited POP files shared by email or social channels should not be treated as sufficient evidence of title or availability. Product and transaction claims should be verified through appropriate contractual, terminal, inspection and banking channels.
4. Unverified Intermediary Chains
Long broker chains create pricing distortion and counterparty risk. Qualified buyers should submit LOI, CIS and corporate documentation through identifiable corporate channels.
Verification discipline
Practical Due-Diligence Checks
Do not rely on a single document or contact point when validating a physical commodity transaction.
Commercial Plausibility
Check whether grade, origin, volume, pricing basis, logistics and payment structure are commercially coherent.
Independent Verification
Use recognized inspection, banking and terminal channels where applicable rather than relying solely on PDFs supplied by intermediaries.
Have an offer that needs compliance review?
Submit the commercial structure and counterparty documentation to the Chelet trade desk for review.