Strengthening Counterparty Due Diligence for a Cross-Border Gold Trading Business
How a UAE-based gold trading firm brought consistency to its counterparty checks as it expanded into new markets.
The situation
A UAE-based gold trading firm was expanding its supplier and buyer network across several jurisdictions, including Turkey, Switzerland and parts of Africa. As transaction volumes grew, so did the number of counterparties involved in its trades.
The company had basic onboarding procedures, but counterparty due diligence was handled largely by hand, by different members of the operations team. Over time, this led to inconsistencies in how new suppliers and buyers were screened and approved.
Management recognized that international expansion would need a more structured approach to counterparty due diligence, to manage regulatory, reputational and banking risk.
The compliance challenge
Several operational gaps had started to emerge:
- Inconsistent onboarding procedures across teams
- Limited screening for sanctions exposure, politically exposed persons (PEPs) and adverse media
- Difficulty verifying complex ownership structures
- No formal escalation process for higher-risk counterparties
- Fragmented documentation for compliance reviews
These gaps created uncertainty as the company continued to scale its international trading network.
Our approach
Avenox Global worked with the firm to introduce a structured due diligence framework designed specifically for precious metals trading operations.
The outcome
The company established a consistent, structured onboarding process for all trading partners. Counterparty screening became standardized across teams, and higher-risk relationships were identified earlier in onboarding.
The firm continued to expand its international trading operations while maintaining stronger compliance controls and clearer documentation for banking and regulatory reviews.
