---
title: Counterparty Due Diligence Engine | TradingSmart
url: https://cyanwaybusiness.com/due-diligence.html
description: Document-based counterparty due diligence: ICAO 9303 passport MRZ, China USCC, Brazil CNPJ and IBAN checks, red flags and a bank-shareable report.
updated: 2026-09-23
publisher: Cyanway Business
---

# Counterparty Due Diligence Engine

TradingSmart reads a counterparty's document package and confronts what it declares with what official registries show — before a contract is signed.

## From document package to verdict in seven steps.

TradingSmart reads a counterparty's full package and confronts what it **declares** with what official registries **show**.

1. **Upload** — The analyst uploads the counterparty's document package — PDFs and images, in any order.
2. **Read** — TradingSmart reads native text directly and runs vision OCR on scanned pages.
3. **Classify** — Each document is typed and marked Official, Declared or Ignore. An analyst overrides any side in one click.
4. **Validate** — Deterministic code checks every identifier against its published standard.
5. **Cross-check** — Declared data is confronted with official registries, passports in the package and screening results.
6. **Score** — Findings resolve into three deterministic buckets on an executive scorecard.
7. **Report** — A styled or sober bank-grade HTML/PDF report is frozen with SHA-256 and shared by secure link.

> “AI reads. Deterministic code decides. Humans stay accountable.”

Language models (Anthropic, OpenAI) only transcribe fields verbatim. Any value that does not literally appear in the source text is discarded.

All risk verdicts come from deterministic code. “Not verifiable” is an honest answer — the system never invents an OK.

Analysts review, override or dismiss findings. Every action records who, when and why.

## Standards, named.

Deterministic validators are the source of truth. Each one implements a published standard or official format.

| Standard | Documents | What TradingSmart checks |
| --- | --- | --- |
| ICAO 9303 | Passports | MRZ with all check digits; printed name vs MRZ. A cut or illegible MRZ can be entered manually and is always labeled not machine-verified. |
| China USCC | Business licenses, GSXT extracts | 18-character unified social credit code and its check digit. |
| Brazil CNPJ | CNPJ card | Company registration number and verification digits. |
| ISO 13616 | CIS, bank letters, contracts | IBAN mod-97 and per-country length. |
| EGN / EIK | Bulgarian registry extracts and IDs | Bulgarian personal and company identifiers. |
| Cross-document | Whole package | Conflicts between documents, such as two different IBANs for the same account. |

## Never compared across writing systems.

English is compared with English, Chinese with Chinese — on separate lines, so a human sees equality or divergence. No fake matches.

Name · Legal representative · Address · Establishment date · Registered capital · Company age · Abnormal-operations lists

## People, screening, roles — and a human in charge.

### Identity triangulation

TradingSmart matches every person named in the commercial documents against the passports in the package.

| Signatory without passport | TO VERIFY |
| --- | --- |
| Orphan passport | NOTE |
| Western alias vs legal name | TO VERIFY |
| Signatory ≠ legal representative | RED FLAG |

### Screening with a human verdict

Each entity is checked on Google, court records (CourtListener) and sanctions lists (OpenSanctions). When results are ambiguous, an analyst records a verdict with a mandatory reason.

NORMAL · ATTENTION · RED FLAG

“Namesake in court record, different city and birth date.” — reason required

### Analysis standard by role

Analyses run As Seller, As Buyer or As Intermediary, and the scorecard adapts. For an intermediary, financial capacity is assessed on the final buyer at SPA stage.

### Human controls with audit trail

Analysts dismiss false positives, correct fields, record screening verdicts and confirm intermediary mandates. Dismissed findings stay visible, struck through.

## Classification in one click. A report a bank can read.

## A deal that looked complete — until the IBAN didn't add up.

1. ReceivedA full package: FCO, Client Information Sheet, business license and bank certificate. Every page looked right.
2. CheckedTradingSmart ran the ISO 13616 mod-97 check on every IBAN in the package and compared them with each other.
3. FoundThe IBAN on the CIS was invalid and did not match the bank certificate.
4. OutcomeThe contract was never signed.

Generic account. Client details withheld.

Values on a supplied registry extract differed from the official registry.

A tampered registration number failed its check digit.

## Evidence that cannot change after you send it.

Each analysis is saved as an immutable case version — files and report hashed with SHA-256, with case codes, aliases to other systems and links to companies and deals.

## Commodity-trading terms, defined.

The documents and registries TradingSmart reads, in plain language.

- **ICPO** (Irrevocable Corporate Purchase Order): A buyer's formal commitment to purchase a commodity under stated terms.
- **FCO** (Full Corporate Offer): A seller's complete offer with price, quantity, specifications and terms.
- **LOI** (Letter of Intent): A preliminary letter stating a party's intention to buy or sell.
- **CIS** (Client Information Sheet): A KYC form with company, signatory and bank details.
- **GSXT** (National Enterprise Credit Information Publicity System): China's official public company registry.
- **USCC** (Unified Social Credit Code): China's 18-character company registration number with a check digit.
- **MRZ** (Machine Readable Zone): The coded lines on a passport, defined by ICAO 9303.
- **IMFPA** (Irrevocable Master Fee Protection Agreement): An agreement that secures intermediaries' commissions in a deal.
- **SPA** (Sales and Purchase Agreement): The binding contract between buyer and seller.

## See your next counterparty through TradingSmart.

We walk you through the trading platform and a sample Due Diligence report.

- Deals, pipeline, sourcing and shipments
- Document classification and deterministic validators
- Executive scorecard and bank-grade report
- Secure read-only share link