ScreenVeritAI
    Target:EuroTech Solutions GmbH
    Transaction:€45M Acquisition
    Status:Screening in Progress
    Risk:Assessing

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    Deal #2024-DEU-047 — Due Diligence Dashboard

    Entity

    Acquisition target

    NameEuroTech Solutions GmbH
    CountryGermany (DE)
    IndustryTechnology
    Employees~340

    Transaction

    Deal parameters

    TypeFull Acquisition
    Value€45,000,000
    TimelineQ2 2026
    Ref#2024-DEU-047

    Due Diligence

    Completion status

    40%
    Financial DD
    Legal review
    Sanctions screen
    UBO / PEP check
    Adverse media

    Risk Assessment

    Current status

    PENDING

    Assessment running

    Compliance screen in progress

    Compliance Check — Layer 1

    Direct entity sanctions screen

    PASSED
    🇺🇸

    OFAC SDN

    PASS
    🇪🇺

    EU Consolidated

    PASS
    🇺🇳

    UN Security Council

    PASS
    🇬🇧

    UK HM Treasury

    PASS
    🇦🇺

    Australia DFAT

    PASS
    🇨🇭

    Switzerland SECO

    PASS

    6 of 6 lists clear. No direct sanctions matches on entity name.

    Note: Surface-level check only. Ownership layer analysis pending.

    Ownership Analysis — Layer 2

    Deep UBO tracing — 4 corporate layers

    FLAGGED
    🇩🇪

    EuroTech Solutions GmbH

    Germany

    Acquisition Target
    🇨🇭

    TechHold AG

    Switzerland

    80% owner
    🇨🇾

    Meridian Investments Ltd

    Cyprus

    100% owner
    🇻🇬

    Eastern Capital BVI

    British Virgin Islands

    100% owner

    V. Sorokin

    FLAGGED

    UBO — PEP + connected to sanctioned entity

    100% beneficial owner

    PEP designation + indirect link to OFAC-designated entity

    Ownership Graph — Interactive View

    Ownership: EuroTech Solutions GmbH — M&A deep-divePEP + Sanctions
    OWNS 60%OWNS 40%DIRECTORSUBSIDIARYUBO 100%EuroTech Solutions GmbHHolding A (Cyprus)Holding B (BVI)H. BeckerCEOMeridian Capital LtdFLAGGEDV. SorokinUBO · PEP + Sanctions linkCompanyPersonPEP / Sanctioned

    Key Finding

    The beneficial owner, V. Sorokin, is identified as a Politically Exposed Person (PEP) and has an indirect connection to an entity designated under OFAC SDN. This finding does not appear in the surface-level entity check.

    ALERT — LAYER 4Ownership chain — BVI entity

    PEP connection identified in ownership chain — V. Sorokin, Layer 4, BVI entity. Indirect exposure to OFAC SDN designated counterparty.

    Risk classification: Enhanced Due Diligence required before transaction proceeds.

    Comparable Enforcement Actions

    Research — M&A compliance failures

    Ericsson AB

    DOJ / FCPA · 2022

    $1.06B

    penalty

    Third-party due diligence failure

    Bribery through intermediaries with sanctioned-linked entities in Iraq. Compliance failures traceable to inadequate UBO screening of third-party agents.

    Airbus SE

    DOJ / SFO / PNF · 2020

    €3.6B

    penalty

    Intermediary screening failure

    Systematic use of business partners and intermediaries without adequate screening across multiple jurisdictions including Middle East and Asia.

    Ericsson

    $1.06B

    2022

    Failed to conduct adequate due diligence on third-party agents used in M&A-adjacent supply chain acquisitions. FCPA violations traced to partners in Djibouti, China, and Vietnam.

    Inadequate partner due diligence

    Airbus

    $4B

    2020

    Paid bribes through business partners and third-party consultants across 20 countries. Due diligence on intermediaries was either absent or deliberately circumvented during deal execution.

    Inadequate partner due diligence

    Risk Assessment — RAG Matrix

    HIGH RISK
    G

    Direct Sanctions Exposure

    Entity not on any active list

    No direct matches
    R

    PEP Exposure

    V. Sorokin — Layer 4 beneficial owner

    UBO is PEP
    R

    Indirect Sanctions Linkage

    UBO linked to SDN-designated entity

    OFAC connection
    A

    Corporate Structure Opacity

    BVI/Cyprus holding structure

    4 offshore layers
    A

    Adverse Media

    UBO association findings

    3 relevant hits
    R

    Overall Deal Risk

    Enhanced Due Diligence required

    HIGH RISK

    Deal Recommendation

    PROCEED WITH ENHANCED DUE DILIGENCE

    Transaction must not proceed without resolving the following conditions

    Risk analysis identified PEP exposure and indirect sanctions linkage at the UBO level. Financial and legal DD are complete. Compliance DD requires escalation.

    1.

    Obtain full disclosure on V. Sorokin's current PEP status and designations

    2.

    Conduct enhanced background on the BVI holding entity Eastern Capital

    3.

    Verify the nature of the connection to the OFAC-designated counterparty

    4.

    Consider restructuring deal to exclude or ring-fence problematic ownership layers

    5.

    Obtain legal opinion on regulatory implications for acquiring jurisdiction

    Full report generated in 6 min 12 sec · Sources cited · Deal-room ready

    Process

    From term sheet to risk clearance

    Most screenings complete in under ten minutes.

    1

    Partnership proposal received

    Enter the entity name, jurisdiction, and any known principals — the platform accepts names in any script.

    2

    Deep research screening

    The AI checks sanctions lists, PEP databases, adverse media in 50+ languages, and corporate registries while tracing ownership chains automatically.

    3

    UBO graph review

    Review the ownership map — every entity and individual screened, with hidden connections and indirect exposures highlighted.

    4

    Risk committee presentation

    Export a board-ready evidence package with findings, source citations, ownership graphs, and a recommended risk tier.

    5

    Ongoing monitoring

    Post-closing, continuous monitoring alerts your team when the partner's sanctions status, PEP connections, or ownership structure changes.

    10+

    Sanctions regimes screened per partner

    ScreenVeritAI coverage

    50+

    Languages covered by AI adverse media research

    ScreenVeritAI multi-language engine

    <10min

    Average time to full partner risk profile with UBO graph

    ScreenVeritAI benchmarks

    Reference

    Partner due diligence FAQ

    When should we run partner due diligence screening?
    Before signing any binding agreement. Post-closing discovery of sanctions exposure triggers investigations and unwinding obligations that pre-deal screening prevents.
    What information do we need to screen an M&A target or JV partner?
    At minimum, the entity's registered name and jurisdiction. Adding known principals, board members, or registration numbers improves accuracy.
    How does ScreenVeritAI trace ownership through complex corporate structures?
    The AI maps ownership through holding companies, nominees, trusts, and cross-border structures — screening every entity and individual in the chain against sanctions, PEP, and adverse media databases.
    Does the screening cover subsidiaries and affiliated entities?
    Yes. The screening covers the parent, subsidiaries, affiliates, and entities sharing common beneficial owners.
    How is the evidence package formatted for deal rooms and boards?
    Timestamped report with risk findings, confidence scores, source citations, UBO graph, PEP details, adverse media summaries, and recommended risk tier — ready for deal rooms and regulatory filings.
    What happens after the deal closes?
    Ongoing monitoring tracks changes in sanctions status, PEP connections, adverse media, and ownership structure. Your team gets automated alerts when the risk profile changes.
    Can we screen multiple M&A targets or partners at once?
    Yes. Upload a CSV and the platform screens all targets in a single batch run with individual reports or a consolidated summary.
    How does this relate to FCPA and UK Bribery Act compliance?
    Both laws hold you liable for your business partners' corrupt conduct. ScreenVeritAI identifies PEP exposure, bribery-related adverse media, and jurisdictional risk — the signals these compliance programs exist to detect.

    Key terms

    M&A Due Diligence
    The investigation and risk assessment conducted before completing a merger or acquisition, including sanctions, PEP, adverse media, and beneficial ownership checks.
    Joint Venture Compliance
    The obligation to screen JV partners for sanctions exposure, political connections, and reputational risk — JV partners can create direct sanctions liability for your organization.
    Third-Party Risk
    Compliance, financial, and reputational risk arising from business relationships with external parties — regulators increasingly hold you responsible for your partners' conduct.
    Beneficial Ownership
    Identifying the natural persons who ultimately own or control a legal entity, typically holding 25%+ of shares or voting rights.
    PEP (Politically Exposed Person)
    An individual holding a prominent public function — extends to family members and close associates, triggering enhanced scrutiny under anti-bribery regulations.
    Sanctions Exposure
    The risk that a business relationship creates a direct or indirect connection to a sanctioned person, entity, or jurisdiction — even when the immediate partner is not designated.

    Regulatory and industry sources

    1. [1]
    2. [2]
    3. [3]
    4. [4]
    5. [5]
      EU Anti-Money Laundering Regulation (AMLR) 2024/1624

      Official Journal of the European Union

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