Which failures should stop the deposit regardless of score?
Use these seven mandatory checks before applying any approval threshold. An unresolved check means hold, not an assumption that the supplier is unsuitable. A confirmed, unremedied failure means reject the current proposal.
- Compliance boundary:
| Mandatory check | What must be established | Who should resolve it? |
|---|---|---|
| 1. Counterparty and authority | Legal contracting parties, yacht identity and authority to offer the charter; applicable identity and sanctions checks completed | Broker, central agent and office compliance/legal adviser |
| 2. Lawful operation and capacity | Permission for this yacht, guest group, itinerary and operating arrangement; applicable certificates and insurance evidence | Yacht manager, captain and qualified maritime adviser |
| 3. Non-negotiable family fit | Every guest has an acceptable berth and workable access; essential dietary, supervision and assistance requirements are accepted | Organiser, captain, chef and relevant specialist |
| 4. Dates and delivery | Exact embarkation/disembarkation times and ports; current availability, option status and reservation mechanism understood | Central agent and retail broker |
| 5. Budget authorisation | Expected expenditure, a plausible higher-spend scenario and cash requirements are approved; material tax assumptions are resolved | Organiser, finance approver and tax adviser |
| 6. Contract and exposure | Actual agreement and special conditions reviewed; material promises addressed; cancellation and disruption exposure accepted | Principal and appropriately qualified legal/insurance advisers |
| 7. Payment control | Recipient and account instructions authenticated independently; authority to receive funds and release conditions understood | Finance team and authorised recipient |
These checks have concrete foundations. The UK Maritime and Coastguard Agency’s REG Part A guidance covers qualifying commercial yachts carrying no more than 12 passengers; Part B addresses a separate passenger-yacht regime. Neither a berth count nor a yacht’s length establishes permission for a particular charter. (gov.uk)
For US operations, the Coast Guard’s August 31, 2026 warning urges paying passengers to verify captain credentials and vessel inspection documentation before paying or boarding. Apply the requirements relevant to the actual vessel and operating model rather than importing a foreign charter assumption. (news.uscg.mil)
For payments, the FBI recommends independently obtaining a company’s telephone number and verifying payment requests and changes in account details. An apparently genuine email thread is not sufficient authentication. (fbi.gov)
Compliance boundary: do not turn a name search into a legal clearance. OFAC explicitly states that its sanctions-search tool is not a substitute for appropriate due diligence. (sanctionssearch.ofac.treas.gov)
Sources cited
- gov.uk https://www.gov.uk/government/publications/msn-1895-m-the-red-ensign-group-reg-yacht-code-part-a/msn-1895-m-the-red-ensign-group-reg-yacht-code-part-a?utm_source=openai
- news.uscg.mil https://www.news.uscg.mil/Press-Releases/Article/4587007/coast-guard-warns-public-of-risks-consequences-associated-with-illegal-charter/?utm_source=openai
- fbi.gov https://www.fbi.gov/how-we-can-help-you/common-frauds-and-scams/business-email-compromise?utm_source=openai
- sanctionssearch.ofac.treas.gov https://sanctionssearch.ofac.treas.gov/Details.aspx?utm_source=openai