Due Diligence
Verification before commitment.
MIPEC applies a structured verification process to every transaction chain. The objective is simple: no party commits capital or documents against unverified claims.
0 Stages
Verification before any commitment
0 Checks
Counterparty screening dimensions
0%
Steps evidenced in writing
The process
Four verification stages
Each stage produces documentary evidence retained in the transaction file. A stage that cannot be evidenced is treated as failed, not pending.
Product availability verification
Confirmation that the offered quantity physically exists, is unencumbered and sits in a tank the seller can actually move product out of.
Seller title holder verification
Review of ownership documents establishing that the seller — not an intermediary in the chain — holds title to the product being offered.
Tank storage agreement confirmation
Validation of the storage agreement, its validity period, injection rights and the tank reference held with the operator.
Inspection coordination
Appointment of an independent inspector — SGS, Intertek or equivalent — for quantity and quality determination at load and discharge.
Know your counterparty
Screening dimensions
Product verification is only half the picture. The entity behind the offer or the order is screened with the same rigour before any commercial document circulates.
Corporate identity
Registry extract, incorporation date, registered address and trading history.
Beneficial ownership
UBO identification down to natural persons, with ID verification.
Sanctions screening
EU, UN, OFAC and UK list screening on the entity, its UBOs and its bank.
Banking capacity
Confirmation the buyer's bank can issue an operative MT760 or MT700.
Signatory authority
Verification that the signing party is authorised to bind the company.
Adverse media
Open-source review of litigation, enforcement actions and reputational flags.
Warning signs
When we stop a chain
Any one of these signals halts the process until it is resolved. Most failed deals in this market show at least one of them early.
- Offers priced far below the prevailing ARA market with no explanation
- Requests for advance fees before any document verification
- Tank references that the named terminal cannot confirm
- Chains with multiple undisclosed intermediaries between seller and title holder
- Refusal to allow an independent inspector or a dip test
- Pressure to sign an SPA before storage and title are verified
Outcomes
Three possible results
Cleared
The chain is verified and the transaction proceeds to FCO and SPA under the published procedure.
Conditional
The counterparty proceeds only after specific documents or confirmations are supplied.
Declined
Verification fails or cannot be completed; MIPEC withdraws from the chain and notifies the client.
Protection for both sides
Buyers avoid issuing financial instruments against non-existent allocations. Sellers avoid releasing sensitive terminal information to unqualified counterparties. The verification sequence is completed before either exposure occurs.
Documentary standard
Every verification step is evidenced in writing — storage confirmations, title declarations, inspection nominations and terminal correspondence are retained as part of the transaction file.
Have a chain you want verified?
Send the offer, terminal and counterparty details and we will tell you what can be confirmed — and what cannot.