Red Flags in Supply Chain Payments
The supply-chain payment red flags compliance teams look for.
The list
- Vendor name fuzzy-matching an SDN entry
- Vendor ownership triggering the 50% rule
- Vendor bank/invoice jurisdiction in an embargoed region
- Fresh vendor entity with a large first invoice
- Routing through sanctioned-adjacent intermediaries
- Invoice/beneficiary mismatches
Why vendor payments matter
Procurement is a payment path: compensation to a blocked vendor is prohibited. The Ripple and BitPay settlements both trace to counterparty surfaces in the vendor/payment shape.
The control
Screen the vendor name, its owners, and its jurisdiction before onboarding and before each payment; flag the patterns above; fail closed. The audit trail is the evidence.