• TRADE FINANCE COMPLIANCE

    April 2024

    Dow Jones unveils AI-powered research platform for due diligence

    Dow Jones Risk & Compliance has unveiled a new AI-powered research platform that aims to enable organisations to build an investigative due diligence report covering multiple sources in as little as five minutes.

    The risk and compliance subsidiary of global news and business information provider Dow Jones claims the new offering is set to reshape compliance workflows, creating an additional layer of investigation that can be deployed at scale.


    Read More

  • TRADE FINANCE COMPLIANCE

    April 2024

    European Parliament adopts new EU rules to combat money-laundering

    The European Parliament has adopted a package of laws strengthening the EU’s toolkit to fight money-laundering and terrorist financing.

    The package requires banks and other so-called obliged entities to provide enhanced due diligence measures and checks on customers’ identity while people with a legitimate interest, including journalists and some non-profit organisations, will have access to beneficial ownership registries. Financial intelligence units (FIUs) will be given greater powers.


    Read More

  • Trade Finance Compliance

    April 2024

    Crossword

    Test you knowledge on Trade Finance Compliance.

    Start Crossword

  • TRADE FINANCE

    April 2024

    BCR Introduces AI4RF seminar to RFIx24 agenda

    Responding to popular demand, BCR has announced the addition of an Artificial Intelligence for Receivables Finance (AI4RF) seminar to its highly anticipated RFIx24 agenda.

    Scheduled for May 23rd at Clifford Chance in London, the AI4RF seminar comes as a timely exploration into the potential impact of AI on receivables finance. This event follows the second day of RFIx 2024, providing attendees with an invaluable opportunity to delve into the evolving landscape of receivables finance.


    Read More

  • Sustainability

    April 2024

    Palm Oil

    Your bank has a position statement on palm oil that states

    The bank will only support transactions involving RSPO certified palm oil and only where the supplier employs RSPO approved supply chain certification mechanisms

    What does RSPO certified mean?

    Established in 2004, the Roundtable on Sustainable Palm Oil (RSPO) promotes the production and use of sustainable palm oil.

    The RSPO has developed a set of environmental and social criteria which companies must comply with in order to produce Certified Sustainable Palm Oil (CSPO). When they are properly applied, these criteria can help to minimize the negative impact of palm oil cultivation on the environment and communities in palm oil-producing regions.

    Find out more

  • TRADE FINANCE

    April 2024

    IFC and DBS launch US$500 million facility to support L/Cs and promote trade flows in emerging markets

    The International Finance Corporation (IFC) and Singapore-based DBS have signed a US$500 million facility under the IFC's Global Trade Liquidity Programme (GTLP).

    The facility can support letters of credit (L/Cs) and aims to promote capital and trade flows in emerging markets across Asia, Africa, the Middle East and Latin America.


    Read More

  • TRADE FINANCE

    April 2024

    New sustainability approaches in shipping: Strategies for decarbonising the industry

    In an era where environmental concerns are at the forefront of global discussions, the maritime industry, often seen as a major contributor to pollution, is under increasing pressure to adopt sustainable practices.

    With approximately 90% of global trade relying on maritime transport, finding ways to mitigate the environmental impact of shipping has become imperative. Fortunately, innovative approaches are emerging, offering hope for a more sustainable future in the shipping industry.


    Read More
  • Trade Finance

    April 2024

    Guess the word

    Hint: One who represents a principal or who buys or sells for another. A person who is authorised by another to act on his behalf in transactions with third parties.

  • TRADE FINANCE

    March 2024

    Latest Technical Advisory Briefing

    Just published - Technical Advisory Briefing from the ICC Banking Commission.

    Latest Technical Advisory Briefing #9 - "Direct presentation of documents to an Issuing Bank under a documentary credit subject to UCP 600" is now available under the Digital Library.


    Read More

  • Incoterms® 2020

    March 2024

    Incoterms® and Commercial Contracts

    The Incoterms® rules explain a set of eleven of the most commonly-used three-letter trade terms, e.g. CIF, DAP, etc., reflecting business-to-business practice in contracts for the sale and purchase of goods.


    Read More

  • Trade Finance

    March 2024

    Crossword

    Test you knowledge on ISP98 - Trade Finance.

    Start Crossword

  • SUSTAINABILITY

    March 2024

    UN Sustainable Development Goals (UN SDGs)

    In 2015, heads of government adopted the UN Sustainable Development Goals (SDGs) which came into effect in 2016. The SDGs are presented in the UN report "Transforming our World: The 2030 Agenda for Sustainable Development".

  • TRADE FINANCE COMPLIANCE

    March 2024

    Wolfsberg updates guidance on countering the financing of terrorism

    Collective responsibility shared between financial institutions (FIs) and law enforcement agencies amongst other public and private sector actors is central to countering terrorist financing according to the Wolfsberg Group’s newly revised and updated statement on the suppression of the financing of terrorism.

    The statement, which replaces one published in 2002, reflects changes in counter financing of terrorism (CFT) measures, the evolving nature of public-private cooperation, and the importance of global cooperation.


    Read More

  • Trade Finance Compliance

    March 2024

    Guess the word

    Hint: The essential characteristic of a demand guarantee is that it is ____________ of the underlying transaction that prompted its issuance.

  • Sustainability

    March 2024

    GMAP

    Tool for assessing agro-commodity risk.


    The Global Map of Environmental & Social Risk in Agro-commodity Production (GMAP) is an online service, aligned to the IFC Performance Standards, which collects information on E&S risks for about 250 country commodity combinations and assigns a colour coded risk score (green/red).

    The risk score provides a basis for more systematic E&S due diligence and decision-making on financing (go/no go), under the conditions that the applicable standard or certificate is produced.

    The GMAP helps users conduct systematic, high-level E&S due diligence associated with trade finance and short-term finance.

    Find out more

  • Trade Finance Compliance

    February 2024

    Guess the word

    Hint: The seller/exporter in a letter of credit.

  • TRADE FINANCE

    February 2024

    Generative AI and LLMs in trade finance: Believe the hype (well, most of it)

    If its advocates are to be believed, the technology known as Generative Artificial Intelligence (GenAI) will in due course transform nearly everything we do in the modern world today. And to an extent, since the advent of ChatGPT by OpenAI in November 2022 it already has: entire industries are now managed differently including education, coding and research.

    There are as many, if not more examples of where the hype has exceeded the reality of the (lack of) value added. And of course, there have been dangers released in the latest technical revolution, such as breaches of personal privacy, generation of misinformation and malign use by bad actors and autocratic governments (not to mention the threat of the robot apocalypse).


    Read More
  • TRADE FINANCE

    February 2024

    World Supply Chain Finance Report 2024

    The World Supply Chain Finance Report 2024 aims to offer an insight and review of the global supply chain finance market, through both regional and specialist articles contributed by industry experts.

    For the purposes of this Report, the term ‘supply chain finance’ has been predominantly used to signify an arrangement whereby a supplier’s invoices are approved by a large buyer for financing by a bank or other financer; also known as reverse factoring, and approved payables finance.


       Free download

  • TRADE FINANCE

    February 2024

    UCP 600 - Exclusions and Modifications

    Applicants and issuing banks should be warned that often an article or sub-article contains more than one rule and excluding the article or sub-article removes all the conditions where it may have been the case that only part of the rule was to be excluded.

     


    SUB-ARTICLE 6 (A) AVAILABILITY

    A credit must state the bank with which it is available or whether it is available with any bank. A credit available with a nominated bank is also available with the issuing bank.

    Sub-article 6 (a) reflects a fundamental and necessary condition in any credit i.e., that every credit must state the bank with which it is available or whether it is available with any bank.

    If the issuing bank is seeking to restrict a credit or limit the availability of a credit, the exclusion of the rule does not achieve this. By stating that the credit is restricted to Bank X, the issuing bank excludes the possibility for the credit to be freely available and allows the beneficiary to present documents only to the nominated bank or the issuing bank.

    Find out more

  • TRADE FINANCE

    February 2024

    L/C confirmation market set for growth says new research

    The global letter of credit (L/C) confirmation market generated US$3.91 billion in 2020. It is projected to generate US$5.09 billion by 2031, and grow at an annual rate of 2.7 per cent between 2021 and 2030, according to a new report published by Allied Market Research.

    The report takes a look at the impact of the Covid-19 pandemic on the L/C confirmation market, and analyses leading market players, including Bank of America, Citigroup, DBS Bank, JPMorgan Chase, MUFG Bank, Mizuho Bank, Scotiabank and Standard Chartered.


    Read More

  • TRADE FINANCE COMPLIANCE

    February 2024

    Professional money launderers turning to TBML and shell companies to enable illicit financial flows

    Professional money launders are on the increase and are using trade-based money laundering (TBML) in their efforts to legitimise illicit financial flows, notably those associated with drug trafficking according to the US treasury department’s 2024 National Money Laundering Risk Assessment (NMLRA).

    It outlines a typical case involving a clothing wholesaler based in Paramount in the US state of California, that was ordered to pay nearly US$10.4 million for violating drug trafficking sanctions and for customs fraud.


    Read More

  • TRADE FINANCE COMPLIANCE

    February 2024

    Wolfsberg Group publishes revised guidance on Swift RMA due diligence

    The Wolfsberg Group has published updated guidance for Swift Relationship Management Application (RMA) due diligence.

    The association of 12 global banks which aims to develop frameworks and guidance for the management of financial crime risks says the changes have been made to keep pace with technical changes occurring as the industry moves to the ISO20022 standard.


    Read More

  • TRADE FINANCE COMPLIANCE

    January 2024

    Egmont Group accepts ‘substantial donation’ from FATF grey-listed UAE

    The Egmont Group of Financial Intelligence Units (FIU) has accepted a “substantial donation” from the UAE, which is currently on the Financial Action Task Force (FATF) ‘grey list’ of jurisdictions under increased monitoring.

    The donation from the UAEFIU for an undisclosed amount is to help support the Egmont Centre of FIU Excellence and Leadership (ECOFEL) programme.


    Read More

  • TRADE FINANCE

    January 2024

    What is a Clean Collection?


    If only financial documents, such as bills of exchange are used in a collection, it is known as a 'Clean Collection' i.e. in a clean collection there are no commercial documents attached to the collection instruction that the exporter delivers to their bank.

     

    Find out more

  • Trade Finance Compliance

    January 2024

    Guess the word

    Hint: The term means the offering or acceptance of an undue advantage in exchange for the improper performance of a function or activity.

  • TRADE FINANCE

    January 2024

    2024 predictions: What’s in stock for tech for trade, treasury and payments in the year ahead?

    Following on from our first predictions article, the incremental gains for credit insurance, trade and supply chain finance, TFG surveyed 9 more industry experts looking at what we might expect for technology for trade, treasury and payments in 2024.

    As we ring in the new year, the trade, treasury, and payments is indeed poised for another year of significant evolution.

    At Trade Finance Global (TFG), we have gathered insights from industry experts to forecast the developments and challenges these sectors will face in the coming year. Their collective wisdom sheds light on the overarching trends and expected transformations across several key areas.


    Read More
  • TRADE FINANCE

    January 2024

    Egypt's L/C shortage prompts firms to sell parts of their businesses

    Egypt's struggles to obtain sufficient foreign currency liquidity to establish and maintain a sustainable flow of import letters of credit (L/Cs) has prompted several private and state-owned Egyptian companies to sell parts of their businesses to foreign buyers to access US dollars.

    The shortage of foreign currency, exacerbated by commodity price hikes since the Russia-Ukraine war, prompted the authorities working through the central bank to use a range of controls over L/Cs with the aim of shoring up Egypt's foreign reserves.


    Read More

  • SUSTAINABILITY

    January 2024

    EBRD, EU and UniCredit support green SMEs in Bosnia and Herzegovina

    The European Bank for Reconstruction and Development (EBRD) is providing a €7m loan to UniCredit Bank d.d. Mostar in Bosnia and Herzegovina. Funds will be lent through the EBRD’s small and medium-sized enterprise (SME) Go Green programme that is supported by the European Union (EU).

    The proceeds will enable UniCredit to continue supporting local SMEs’ investments in green and sustainable technologies. Enhanced access to green finance will support the competitiveness and export potential of local businesses, providing them with opportunities to improve their products and services in line with the highest EU climate, environmental protection and other standards.


    Read More

  • TRADE FINANCE

    January 2024

    More African banks sign up for L/C support from development institutions

    Two more African banks have signed up for facilities provided by development institutions that guarantee trade finance instruments, including letters of credit (L/Cs).

    Agreements with Ecobank Malawi and Bank of Africa Tanzania Limited (BOAT) follow hot on the heels of the African Development Bank's (AfDB's) approval of a US$7 million trade finance transaction guarantee facility for NBS Bank in Malawi (DC World News, 20 December 2023).


    Read More

  • TRADE FINANCE

    December 2023

    BAFT publishes new guidelines to stem correspondent banking decline

    The Bankers Association for Finance and Trade (BAFT) has released an updated version of its guidelines to help respondents establish and maintain correspondent banking relationships necessary for letter of credit (L/C) amongst other international financial transactions and banking services for other financial institutions.

    The BAFT Respondent's Playbook 2.0: A Correspondent Banking Relationship Guide is intended as a roadmap for respondent banks on international anti-money laundering and counter financing of terrorism (AML/CFT) standards.


    Read More

  • Trade Finance Compliance

    December 2023

    Crossword

    Test you knowledge on Trade Finance Compliance.

    Start Crossword

  • Supply Chain Finance

    December 2023

    Crossword

    Test you knowledge on Supply Chain Finance.

    Start Crossword

  • TRADE FINANCE COMPLIANCE

    December 2023

    Transparency International calls for a harmonised EU approach on beneficial ownership access

    One year after an EU court ruling on beneficial ownership registers left civil society and journalists in 13 countries encountering obstacles or completely unable to access information regarding companies’ real owners, Transparency International (TI) has published analysis of how different European states have responded by introducing disparate approaches to beneficial ownership access.

    The need for a harmonised approach across the EU is clear, according to the NGO that focuses on combating global corruption.


    Read More

  • TRADE FINANCE

    December 2023

    Lawyers analyse banks' victory in fraud exception to resist L/C payment case

    Lawyers at Singaporean law firm Shook Lin & Bok have published a summary and commentary on the recent decision in the case of Winson Oil Trading versus Oversea-Chinese Banking Corporation (OCBC) and Standard Chartered Bank (Singapore).

    The Singapore High Court allowed the banks' defences to non-payment on letters of credit (L/Cs) on grounds of fraud. The claim against Standard Chartered was for around US$30.4 million.


    Read More

  • Trade Finance Compliance

    December 2023

    Guess the word

    Hint: In Financial Crime, this term describes fraudulent activity relating to an alleged trade transaction in which no goods are shipped.

  • TRADE FINANCE

    December 2023

    WFY'23: 'Factoring volume has been growing over the last few years' in Egypt

    BNP Paribas announces the granting of three Inclusive & Sustainability-Linked Financing, which include environmental, social and just transition objectives, to microfinance institutions in Europe and Brazil:

    L’Adie in France: Since its creation in 1989, over 180,000 entrepreneurs in France have received financing. As part of its Inclusive & Sustainability-Linked Financing (ISLF), several objectives are monitored: Number of professional loans to women, number of loans to entrepreneurs from priority neighborhoods of the city and welfare recipients; share of microloans that finance the environmental transition of its clients; reduction of the carbon footprint of its activities. PerMicro in Italy: Founded in 2007, PerMicro grants microloans to entrepreneurs and households throughout Italy. As part of its Inclusive & Sustainability-Linked Financing (ISLF), several objectives are monitored: Volume of microloans to microenterprises run by young people and women; value of the portfolio dedicated to financing green technologies and practices, including sustainable mobility, energy efficiency and renewable energies; volume of loans with environmental impact and climate vulnerability assessment.


    Read More

  • TRADE FINANCE COMPLIANCE

    November 2023

    NCA issues globally relevant red alert on abuse of gold to evade sanctions on Russia

    The UK’s National Crime Agency (NCA) has issued a Red Alert to financial institutions and other members of the regulated sector warning that Russia is using gold as a means to undermine the impact of the UK sanctions regime.

    The Red Alert is relevant in a global context because of London’s key role in accrediting gold refineries and setting standards worldwide.


    Read More

  • TRADE FINANCE COMPLIANCE

    November 2023

    Effectiveness of financial crime systems dropping says Basel AML Index 2023

    Anti-money laundering and counter financing of terrorism (AML/CFT) systems are becoming less effective, according to analysis of Financial Action Task Force (FATF) data in the 2023 Public Edition of the Basel AML Index.

    Global money laundering and terrorist financing risks meanwhile just keep on rising, according to the annual dataset produced by the Basel Institute on Governance.


    Read More

  • Trade Finance Compliance

    November 2023

    Guess the word

    Hint: A document accompanying goods indicating the country where the goods were produced.

  • Trade Finance

    November 2023

    Crossword

    Test you knowledge on Trade Finance.

    Start Crossword

  • TRADE FINANCE

    November 2023

    What is a "Red Clause Credit"?


    Advance payment credits were traditionally known as "Red Clause Credits".

    This was due to the fact that the clause referring to the advance payment was typed in red on the letter of credit.

    Find out more

  • TRADE FINANCE

    November 2023

    Red flags related to L/Cs included in new US guidance on export control evasion

    Purchases under letters of credit (L/Cs) that are consigned to the issuing bank are amongst several red flags listed in new suspicious activity reporting (SAR) guidance to support US financial institutions in reporting potential efforts to evade US export controls.

    The guidance issued jointly by the US Bureau of Industry and Security and the Financial Crimes Enforcement Network (FinCEN) also introduces a new SAR key term, 'FIN-2023-GLOBALEXPORT', which US financial institutions should reference when reporting suspicious activity to FinCEN.


    Read More

  • TRADE FINANCE COMPLIANCE

    November 2023

    Mis-invoicing ‘pervasive’ in trade in illicitly sourced timber, gemstones and abalone

    The subjective nature of the value of illicitly sourced timber, gemstones and abalone facilitates mis-invoicing, trade-based money laundering and evasion of customs duties, according to a new report by the Global Initiative Against Transnational Organised Crime (GI-TOC).

    Formal financial systems meanwhile play a key role by the time these illicitly garnered goods reach their destination markets, where they are co-mingled with legally sourced products and sold on the open market.


    Read More

  • Sustainability

    November 2023

    Megatrend - Population Growth

    According to the United Nations the world's population is expected to increase by more than 30 percent to upwards of 9 billion between now and 2050.

     

    A large proportion of this population increase will occur in the world's less developed regions, including those in Africa, Asia and Latin America.

    Key factors behind the continuing population growth in less developed regions are lower rates of infant mortality and greater life expectancy thanks to improved standards of living. Future populations will therefore be larger and older.

    Find out more

  • TRADE FINANCE

    November 2023

    ICC reports increase in import L/C risks, but post pandemic trade credit remains low risk

    Global exposure-weighted default rates for import L/Cs almost doubled from 2021 to 2022, according to the International Chamber of Commerce's (ICC's) latest market forecasts for global trade and trade finance in the emerging macroeconomic climate.

    Yet the ICC Trade Register Report 2023, led by the ICC's banking commission in collaboration with Boston Consulting Group and Global Credit Data, reports just a small increase in default rates across documentary trade and open account offerings and demonstrates the low risk nature of the transactions that enable global trade.


    Read More

  • TRADE FINANCE

    November 2023

    BNP Paribas grants Inclusive & Sustainability-Linked Financing to three microfinance institutions in Europe and Brazil

    BNP Paribas announces the granting of three Inclusive & Sustainability-Linked Financing, which include environmental, social and just transition objectives, to microfinance institutions in Europe and Brazil:

    L’Adie in France: Since its creation in 1989, over 180,000 entrepreneurs in France have received financing. As part of its Inclusive & Sustainability-Linked Financing (ISLF), several objectives are monitored: Number of professional loans to women, number of loans to entrepreneurs from priority neighborhoods of the city and welfare recipients; share of microloans that finance the environmental transition of its clients; reduction of the carbon footprint of its activities. PerMicro in Italy: Founded in 2007, PerMicro grants microloans to entrepreneurs and households throughout Italy. As part of its Inclusive & Sustainability-Linked Financing (ISLF), several objectives are monitored: Volume of microloans to microenterprises run by young people and women; value of the portfolio dedicated to financing green technologies and practices, including sustainable mobility, energy efficiency and renewable energies; volume of loans with environmental impact and climate vulnerability assessment.


    Read More

  • TRADE FINANCE COMPLIANCE

    October 2023

    Germany approves draft law to fundamentally reorganise its fight against financial crime

    The German federal government has approved a draft law that it claims will fundamentally reorganise the country’s fight against financial crime.

    Anti-money laundering (AML) will be prioritised, a money laundering investigation centre (MIC) will be established, and the country’s hitherto fragmented approach to combatting financial crime will be ended.


    Read More

  • Trade Finance

    October 2023

    Guess the word

    Hint: An asset pledged by a borrower to a lender making a secured loan.

  • SUSTAINABILITY

    October 2023

    Report: Greenwashing incidents up 70% globally in 2023

    A RepRisk report released on Tuesday revealed a 70% increase in greenwashing incidents by banks and financial services companies globally over the past 12 months, compared to the previous year.

    The bulk of these incidents were attributed to European financial institutions, with a significant number of the greenwashing claims focusing on fossil fuels.

    RepRisk, a data firm specialising in Environmental, Social, and Governance (ESG) metrics, reported 148 greenwashing cases in the global banking and financial services sector for the year ending September 2023, up from 86 in the prior year.


    Read More
  • TRADE FINANCE

    October 2023

    ADB provides $300m loan to boost Filipino financial inclusion

    The Asian Development Bank (ADB) has greenlit a $300 million policy-driven loan. This endeavour assists the Philippine government in establishing a resilient institutional and policy backdrop, aiming to augment Filipinos’ access to financial services.

    The primary focus is on the nation’s vulnerable demographic, ultimately fostering economic expansion.

    ADB’s Inclusive Finance Development Program, Subprogram 3, champions reforms that amplify financial inclusivity in the Philippines. This encompasses refining the nation’s financial infrastructure, broadening the scope of digital financing, and bolstering the potential of various financial service providers.


    Read More
  • TRADE FINANCE COMPLIANCE

    October 2023

    Massive TBML scheme revealed in Pakistan’s solar power sector

    Investigators in Pakistan have uncovered a massive trade-based money laundering (TBML) scheme involving the mis-invoicing of solar power equipment in one of the country’s largest financial scandals.

    The TBML scheme was revealed after customs officials audited hundreds of goods declarations submitted by two companies, Bright Star Business Solutions and Moonlight Traders.


    Read More

  • TRADE FINANCE

    October 2023

    Africa’s total exports expected to hit close to US$1tn by 2035, Standard Chartered report reveal

    Standard Chartered has today published its Future of Trade: Africa report, highlighting the outlook for African trade and providing a view of the African Continental Free Trade Area (AfCFTA) as a key proponent of optimising intra-African trade.

    The report finds that Africa’s total exports will reach US$952bn by 2035 and the AfCFTA, once fully implemented, has the potential to increase this figure by a further 29 per cent. This represents an annual growth rate of 3 per cent from now until 2035.


    Read More

  • TRADE FINANCE

    October 2023

    ADB approves US300m finance to increase access to financial services in Philippine

    The Asian Development Bank (ADB) has approved a US$300m policy-based loan to support the Philippine government in creating a stronger institutional and policy environment to help expand Filipinos’ access to financial services, particularly the vulnerable segment of the population, and to promote economic growth.

    ADB’s Inclusive Finance Development Program, Subprogram 3, is supporting reforms to expand financial inclusion in the country by improving the country’s financial infrastructure, including widening the digital financing ecosystem. It also supports efforts to increase the capacity of financial service providers, including rural banks and nonbank financial institutions, to offer quality products and services accessible through various delivery channels.


    Read More

  • TRADE FINANCE

    October 2023

    L/C shortages bringing shipping services to a halt at Bangladesh's primary port

    Letter of credit (L/C) shortages are bringing shipping services to a halt at Bangladesh's primary port of Chattogram.

    Jetties designated for handling container vessels are remaining empty as fewer vessels arrive at Chittagong while the port's ambitious expansion programme is being thwarted by the government's austerity measures.


    Read More

  • TRADE FINANCE

    September 2023

    Lloyds Bank completes first digital trade transaction under new UK legislation

    Lloyds Bank has completed what it believes to be the first transaction under the UK’s new Electronic Trade Documents Act (ETDA) which came into force today [20 September 2023].

    The ETDA gives electronic Bills of Exchange, Bills of Lading and other commercial documents the same legal footing as paper documents. The legislation is designed to give UK businesses and participants in the 60-80% of trade transactions worldwide that are subject to English law, more flexibility in how they trade. The Act will also significantly reduce the environmental impact that paper documentation has, while reducing the cost and time taken to conclude international trade transactions.


    Read More
  • Sustainability in Trade and Trade Finance

    September 2023

    Greenwashing

  • Trade Finance

    September 2023

    Guess the word

    Hint: Draft payable on demand and drawn by or on behalf of the bank itself.

  • TRADE FINANCE COMPLIANCE

    September 2023

    AML/CFT regulations, compliance and geopolitical volatility widen trade finance gap to record size

    The global trade finance gap widened to a record US$2.5 trillion in 2022 from US$1.7 trillion two years earlier according to the latest edition of the Asian Development Bank’s (ADB’s) flagship Trade Finance Gaps, Growth and Jobs Survey.

    Financial crime compliance, anti-money laundering and counter financing of terrorism (AML/CFT) regulations, as well as customer and counterparty due diligence requirements continue to be reported as obstacles to the provision of trade financing


    Read More

  • TRADE FINANCE COMPLIANCE

    September 2023

    LEI could be leveraged by FATF in its review of information on payment originators and beneficiaries

    As the only established universal entity identifier globally, the legal entity identifier (LEI) is uniquely positioned to play a foundational role in the fight against financial crime according to Clare Rowley, head of business operations at the Global Legal Entity Identifier Foundation (GLEIF).

    She suggests the LEI could also be leveraged by the Financial Action Task Force (FATF) in an upcoming review of its ‘recommendation 16’, which specifically aims to ensure that basic information on the originator and beneficiary of payments are immediately available.


    Read More

  • TRADE FINANCE

    September 2023

    ETDA comes into force

    The Electronic Trade Documents Act (ETDA) has come into force today.

    The new law represents a huge step forward into digitalisation of trade flows by eliminating paper flow documents and increase efficiency and transparency. This new act is not imposing the use of electronic documents and is allowing paper ones to circulate as well. In case of the use of electronic documents, they should be stored on a ‘reliable system’ that will permit verification of the authenticity, integrity and singularity of the documents.


    Read More

  • Trade Finance

    August 2023

    Guess the word

    Hint: A bank authorised by the issuing bank to make settlement against receipt of a complying presentation.

  • TRADE FINANCE COMPLIANCE

    August 2023

    Hong Kong launches bank-to-bank information sharing platform

    The Hong Kong Association of Banks (HKAB), Hong Kong Monetary Authority (HKMA), and Hong Kong Police Force (HKPF) have launched the Financial Intelligence Evaluation Sharing Tool (FINEST), a bank-to-bank information sharing platform.

    The initiative aims to help increase banks’ ability to share information for detecting and disrupting fraud and mule account networks more effectively, thereby giving the public greater protection from fraud and financial crimes and enhancing the integrity of the banking system.


    Read More

  • TRADE FINANCE

    August 2023

    L/Cs ensured that Pakistan's Covid support financing was not misdirected

    State Bank of Pakistan (SBP) governor, Jameel Ahmad, has told a senate committee that letters of credit (L/Cs) ensured that loans made under the concessionary Temporary Economic Refinance Facility (TERF) to some businesses during the Covid pandemic were not used for any purpose other than for purchasing plant and machinery.

    The senate's standing committee on finance and revenue had raised questions over the transparency of over US$3 billion of loans approved under the TERF. Members suspected that some funds had been misdirected and expressed concerns over the central bank's weak oversight of the funds.


    Read More

  • TRADE FINANCE COMPLIANCE

    August 2023

    What is a boycott?


    A boycott is a voluntary abstention from social or economic dealings with a person, entity, or country, designed to force them to alter objectionable behaviour.

    The term ‘boycott’ is also used to refer to actions mandated by governments against other countries or private entities.

    IN PRACTICAL TERMS

    In practical terms, a boycott imposed by law is an embargo, often described as a sanction.

    What does it mean then when we talk about ‘Anti-Boycotts?

    Find out more

  • TRADE FINANCE

    August 2023

    Thumbs up for trade: the influence of an emoji

    A judge in a Canadian court case has ruled that a thumbs-up emoji constituted a legally binding acceptance of a contract, ordering the defendant, who failed to fulfil their end of the deal, to pay more than $82,000 in damages.

    In November 2021, buyer South West Terminal Ltd (SWT) sought to purchase 87 metric tonnes of flax from seller Achter Land & Cattle Ltd at a price of $669.17 per tonne.


    Read More
  • SUSTAINABILITY

    August 2023

    From deserts to forests: Mongolia’s path towards a sustainable economy

    Nestled in East Asia, Mongolia, known as the ‘land of the blue sky,’ boasts unique ecosystems and a rich cultural heritage. However, the country’s geographic location, extreme weather conditions, and delicate ecosystems render its economy highly susceptible to the pervasive risks of climate change.


    Read More
  • SUSTAINABILITY

    August 2023

    From deserts to forests: Mongolia’s path towards a sustainable economy

    Nestled in East Asia, Mongolia, known as the ‘land of the blue sky,’ boasts unique ecosystems and a rich cultural heritage. However, the country’s geographic location, extreme weather conditions, and delicate ecosystems render its economy highly susceptible to the pervasive risks of climate change.


    Read More
  • Trade Finance

    July 2023

    Guess the word

    Hint: A "_________" confirmation added by a bank, at the request of the beneficiary, without any specific request or authorisation of the issuing bank.

  • Trade Finance

    July 2023

    What is a Clean Standby LC?


    A clean standby is an undertaking to pay on presentation of a simple demand or draft without any reference to the occasion for drawing it.

    Due to the simplicity of its requirements - merely a demand or a draft - a clean standby is sometimes known colloquially as a “suicide standby”.

    Find out more

  • SUSTAINABILITY

    July 2023

    8 shipping technologies to help decarbonise the industry

    Almost every traded good in existence has sailed the high seas. The constant flow of products across oceans is necessary for meeting growing consumer demand. However, global shipping is also a significant driver of climate change, emitting more greenhouse gases than most countries. Here is how shipping and logistics companies can use technology to reduce the industry’s carbon footprint.


    Read More
  • TRADE FINANCE

    July 2023

    Pakistan’s SMEs heavily underfinanced, CCP study reveals

    The Competition Commission of Pakistan (CCP) has concluded an extensive study titled “Enhancing Economic Efficiency of SMEs in Pakistan”, identifying barriers to competition, and providing recommendations for improving the economic efficiency of small and medium enterprises (SMEs).

    The study is based on data from 50 Financial Institutions (FIs), 18 focused group discussions, and 362 SMEs across 11 cities and a seminar conducted by CCP on women entrepreneurs.


    Read More

  • TRADE FINANCE COMPLIANCE

    July 2023

    Hong Kong bankers urged to curb dual-use and advanced technology exports to Russia

    Bankers in Hong Kong are amongst those in the Asian financial hub to have been asked by US treasury department officials to help identify American-made high-tech items being shipped to Russia according to the Nikkei

    The US diplomatic effort reflects Washington’s aim to prevent circumvention of sanctions intended to ensure that dual-use and advanced technology items made in the US are not sent to Russia via third countries.


    Read More

  • TRADE FINANCE

    July 2023

    Non-existent standby L/C helped fraudsters obtain US$1 million up-front fee

    A court in the US state of New Jersey has sentenced two men to prison for their parts in a US$1 million up-front fee fraud that centred on a purported standby letter of credit (L/C) that the fraudsters said would help their victims import gold.

    Roy Gillar was sentenced to six years in prison while Harold Mignott faces three years in jail. A co-defendant, Jerrid Douglas is scheduled to be sentenced later this month.


    Read More

  • Trade Finance compliance

    July 2023

    Indicators of Trade Based Financial Crimes

    There are widely accepted Indicators of financial crime that suggest the possibility of various types of financial crime.


    Typical Indicators include:

    • Unusual Transaction
    • Significant Deviations in Business Patterns
    • Collusion
    • Apparent Front or Shell Company in Transaction
    • Geographical or Jurisdictional Concerns
    • Transactions in High Risk or High Value Goods
    • Problematic Parties
    • Dual Use Goods
    • Apparent Inconsistencies in Proposed Transaction
    • Trade Structure Concerns
    • Letter of Credit Related Concerns
    • Suspicious Actions

    Find out more

  • Sustainability in Trade and Trade Finance

    July 2023

    Why do environmental and social issues matter for banks?

  • Trade Finance

    June 2023

    Guess the word

    Hint: A method of resolving commercial disputes where both parties are required to submit the documents relevant to the case to an outside agency for an independent judgement and to accept that judgement.

  • TRADE FINANCE COMPLIANCE

    June 2023

    What is Money Laundering?


    Money laundering is the criminal practice of processing illegally obtained money by placing it into legitimate finance in order to make it appear as though it were derived from legitimate activities.

    FATF defines trade based money laundering as “the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimise their illicit origin.”

    Often, trade based money laundering schemes rely on the complexity of global trade as a means of obscuring the true origin of the funds.

    There is no “one size fits all” approach to prevent and stop trade based money laundering (Anti Money laundering)



    Find out more
  • Incoterms® 2020

    June 2023

    About Incoterms

  • TRADE FINANCE

    June 2023

    Types of Supply Chain Finance

    At a high-level, supply chain financing can be categorised and defined as:

    • Receivables Purchase
    • Advanced Payables and
    • Loans …

    with various established and evolving SCF techniques offered under each category.

    Read More

  • Sustainability

    June 2023

    Quiz

    What do you know about Sustainability?

    Take our short sustainability quiz

    Start quiz

  • TRADE FINANCE COMPLIANCE

    June 2023

    When does Commercial Fraud Occur?


    Commercial Fraud occurs where legitimate commercial activities are misused for improper and illegitimate ends.



    Find out more
  • TRADE FINANCE

    June 2023

    L/Cs and shell companies used in one of India's largest fraud cases to date

    A businessman has been accused by India's enforcement directorate (ED) of using fraudulent letters of credit (L/Cs) and a network of shell companies to cheat banks out of the equivalent of around US$6.8 billion.

    The accusations follow the arrest last week of promoter and former managing director of Bhushan Steel, Neeraj Singhal. He has been remanded in custody until 20 June.


    Read More

  • TRADE FINANCE COMPLIANCE

    June 2023

    Trade misinvoicing highlighted as UN releases first ever national IFF estimates

    Afghanistan, Bangladesh, Colombia, Ecuador, Maldives, Mexico, Myanmar, Nepal and Peru have produced the first-ever national estimates of illicit financial flows (IFFs) related to drug trafficking, trafficking in persons and smuggling of migrants.


    Read More

  • Trade Finance

    June 2023

    Crossword

    Test you knowledge on Trade Finance.

    Start Crossword

  • Trade Finance

    May 2023

    Documentary Credit Cycle


    A typical credit cycle follows 10 basic steps.

    1. The importer, known as the applicant, applies to the issuing bank to issue a documentary credit in favour of the exporter, known as the beneficiary.
    2. The issuing bank reviews the application form to ensure that it is complete and precise and that it satisfies internal credit approval.
    3. If satisfied with the application, the issuing bank issues the documentary credit and forwards it to the advising bank.
    4. The advising bank satisfies itself as to the apparent authenticity of the credit and forwards it to the beneficiary.
    5. The beneficiary examines the documentary credit to ensure that he can comply with its terms and conditions. If not satisfied with the terms of the credit the beneficiary will seek an amendment.
    6. When the beneficiary determines that the credit is acceptable, he ships the goods and makes a presentation of the documents to the nominated bank. It is very common that the advising bank is also the nominated bank.
    7. The nominated bank examines the documents against the terms and conditions of the documentary credit and may make settlement as specified in the credit, if they are found to comply. The nominated bank is not obliged to make settlement against a complying presentation unless it has added its confirmation to the credit.
    8. The documents are then forwarded by the nominated bank to the issuing bank. As the issuing bank has given its definite undertaking to pay the beneficiary, it too is required to examine the documents to determine whether or not they comply with the terms and conditions of the documentary credit.
    9. If the issuing bank determines that the documents comply, they will reimburse the nominated bank in the manner specified in the documentary credit or as requested in the document schedule of the nominated bank.
    10. The final step of the cycle involves the issuing bank obtaining reimbursement from the applicant, usually by debiting the applicant’s bank account. The issuing bank then releases the documents to the applicant to enable them to take possession of the goods.

     

    Find out more

  • TRADE FINANCE COMPLIANCE

    May 2023

    Indicators of Trade Based Financial Crimes


    There are widely accepted Indicators of financial crime that suggest the possibility of various types of financial crime.

    Some Indicators are more commonly linked to specific financial crimes whereas others relate to virtually all types.

    The behaviour patterns that are commonly associated with financial crime are potential signs or signals that indicate that further scrutiny is warranted.

    While the presence of an Indicator does not necessarily mean that a financial crime is being committed, it does signal the possibility and the greater the number of Indicators present, the greater the possibility that there is a financial crime and, in any event, the greater the need for additional scrutiny



    Find out more
  • Sustainability

    May 2023

    What is Greenwashing?

    Greenwashing is defined “as activities by a company or an organization that are intended to make people think that it is concerned about the environment, even if its real business actually harms the environment”.

    Source: Oxford English Dictionary

    Greenwashing is designed “to make people believe that your company is doing more to protect the environment than it really is”.

    Source: Cambridge Dictionary


    Find out more

  • Trade Finance Compliance

    Maye 2023

    What’s an Economic Sanction?


    An Economic Sanction is the deliberate limitation or cessation of trade and financial relations by a nation or intergovernmental body against a specified nation, region, government, industry, group, or person as a response to, or in an effort to, alter social, political, economic, or military policy.

    Sanctions exert pressure on persons, organisations, or political regimes to comply with the law or policy of the state or the organisation imposing the sanctions.

    Economic sanctions can be divided into two subsets:

    • Financial or
    • Trade-based restrictions.

    Find out more

  • Trade Finance

    May 2023

    What is a Revolving Letter of Credit?


    A revolving credit is one that allows the amount to revolve on the same terms and conditions as the original letter of credit, following the occurrence of an event that will 'trigger' a revolvement.

    By using a revolving credit, the applicant and beneficiary can agree on the structure of a single credit; determine the base amount of each revolvement and the number of revolvements that are required to fulfil the total value of the contract.

    Main features

    • Revolvement occurs on an automatic or non-automatic basis
    • Revolvement is cumulative or non-cumulative.

    Find out more

  • TRADE FINANCE COMPLIANCE

    May 2023

    Europe under pressure to overturn ban on public access to beneficial ownership information

    Representatives of civil society, media and academia from across the Europe and beyond are lobbying European Union (EU) legislators to restore the right of individuals holding a legitimate interest to access Europe’s ultimate beneficial ownership (UBO) registers. Such individuals include journalists, civil society organisations and higher education institutions.


    Read More

  • Trade Finance

    May 2023

    What is a Standby Letter of Credit?


    A Trade Finance Payment Security Instrument

    A Standby Letter of Credit is a guarantee of payment issued by a bank on behalf of a client that is used as "standby payment of last resort" should the client fail to fulfil a contractual commitment with a third party.

    The use of Standby Letters of credit to support and secure international trade and finance is growing rapidly.

    Standby Letters of Credit are most often used as a 'Standby Security' which stand-by in the event that the buyer of a contractor fails to perform under an underlying contract or agreement – or fails to pay an amount of money due.

    Standby Letters of Credit are issued subject to international rules of the ICC.

    A Standby Letter of Credit can be issued subject to the UCP 600 rules or another set of rules developed specifically for use with Standby Letters of Credits.  These specific rules are known as the ISP or 'International Standby Practices' and the version currently in effect is ISP98. A Standby Letter of Credit can be issued subject to the UCP 600 rules, or the ISP98 rules.

    Find out more

  • TRADE FINANCE

    May 2023

    Blockchain L/C in Thai-Indonesian chemical market brings green benefits

    Thailand's Bangkok Bank and Indonesia's Permata Bank have collaborated to complete a blockchain letter of credit (L/C) transaction in the Thai-Indonesian chemical market.

    The digitalisedL/C transaction also aligns with the concept of green business for sustainable growth according to Bangkok Bank.


    Read More

  • TRADE FINANCE COMPLIANCE

    May 2023

    ITFA launches fraud prevention working group

    The International Trade and Forfaiting Association (ITFA) has announced the creation of the ITFA fraud prevention working group.

    The global trade finance industry body says the newly created group is being set up as part of ITFA’s fintech committee, with the aim of addressing a significant risk issues in trade finance.


    Read More

  • Incoterms® 2020

    May 2023

    Expert guidance

  • Trade Finance

    May 2023

    Guess the word

    Hint: Providing monies to a supplier upfront.

  • Trade Finance

    May 2023

    Drafts & UCP 600

  • Trade Finance Compliance

    April 2023

    Trade Based Financial Crimes

    Fight against corruption and IFFs key plank in South Africa's economic recovery plan


    South African President Cyril Ramaphosa has said his government is intensifying its fight against corruption and illicit financial flows (IFFs) as an integral part of its plans to revive the country's economy in the wake of the coronavirus pandemic. 

    In an address outlining the country's Economic Reconstruction and Recovery Plan, the president said that a Special Investigating Unit (SIU) is already actively looking into allegations of criminal offences committed during the national state of disaster.

    IFF clampdown

    "We are working to clamp down on the illegal economy and illicit financial flows, including transfer pricing abuse, profit shifting, VAT and customs duty fraud, under-invoicing of manufactured imports, corruption and other illegal schemes," said Ramaphosa.
    "The decisive action we have taken to prevent, detect and act against Covid-related corruption will strengthen the broader fight against crime. The SIU has made significant progress in probing allegations of criminal conduct in all public entities during the national state of disaster," he added.

    Politically exposed persons

    Ramaphosa said law enforcement agencies were being strengthened and provided with adequate resources to enable the identification and swift prosecution of corruption and fraud and that there will be no political interference with the work of law enforcement agencies.

    "We will strengthen the framework to ensure that political office-bearers at all spheres of government do not do business with the state and we welcome the agreement…that all social partners will act decisively against corruption and fraud in their ranks," said Ramaphosa.

    Last year it emerged that trade-based money laundering (TBML) was extensively used to move illicit funds by companies linked with the Gupta family, which has been subject of extensive international scrutiny given its close ties to Jacob Zuma when he was South Africa's president (Trade Based Financial Crime, 5 July 2019).

    Find out more

  • TRADE FINANCE

    April 2023

    India's ICICI Bank joins trend to reduce reliance on US dollar in international trade finance

    India's ICICI Bank is adding a rupee vostro account (RVA) to its digital online trade platform that includes letter of credit (L/C) functionality according to an official statement.

    The proposition will enable Indian exporters and importers to pay and settle export-import transactions in Indian rupees (INR) with RVAs that can be opened with correspondent banks in the Americas, Europe, Asia and the Gulf.


    Read More

  • Trade Finance

    April 2023

    Guess the word

    Hint: The seller/exporter in a letter of credit.

  • TRADE FINANCE COMPLIANCE

    April 2023

    TBML unearthed in FinCEN’s first enforcement action against a trust company

    Transactions with connections to a trade-based money laundering (TBML) scheme have been revealed in an investigation by the US treasury department’s Financial Crimes Enforcement Network (FinCEN) that has resulted in a US$1.5 million civil money penalty on South Dakota-chartered Kingdom Trust Company for wilful violations of the Bank Secrecy Act (BSA).


    Read More

  • TRADE FINANCE COMPLIANCE

    April 2023

    Vessel ownership, trade finance and regulatory compliance

    A new statistical review has been published to help financial institutions that are increasingly expected to monitor suspicious vessel behaviour in line with regulations to combat sanctions and financial crime compliance evasion.


    Read More

  • Trade Finance

    April 2023

    Crossword

  • TRADE FINANCE

    April 2023

    AfDB continues rollout of trade finance transaction guarantee facility

    The African Development Bank (AfDB) is continuing its efforts to facilitate letter of credit (L/C) flows in Africa by approving a trade finance transaction guarantee facility for Banque Commerciale du Burundi (Bancobu).

    The facility is one of the AfDB's responses to concerns about shrinking L/C availability in Africa since the terrorist attacks of 9/11 led to stricter compliance requirements that prompted some international banks to exit African markets. This process was accelerated by the 2008 financial crisis and, most recently, by the Covid pandemic.


    Read More

  • Sustainability

    April 2023

    Water Resources

    As the world population expands, so does the need for fresh water and safe drinking water supplies. Understanding the water footprint of a product and being able to substitute different types (qualities) of water used in the production of that product contributes towards conserving the natural resources.


    The Oil, Paper and Fashion industries are the largest consumers of water globally.

    The table below shows the typical volume of water needed to produce a unit of everyday produce.

    Commodity (Kg) Volume of water
    required (Litres)
    Tobacco 2,925
    Beef 16,000
    Potatoes 287
    Wine(litre) 870
    1 cup of coffee 140

     

    Find out more

  • TRADE FINANCE COMPLIANCE

    April 2023

    Wolfsberg Group publishes guidance for financial institutions to prevent and protect against bribery and corruption

    The Wolfsberg Group has published its updated Anti-Bribery and Corruption Compliance Programme Guidance. The association of global banks that develops frameworks and guidance for the management of financial crime risks – particularly with respect to policies for anti-money laundering and know your customer – says this document updates the 2017 version.


    Read More

  • TRADE FINANCE COMPLIANCE

    April 2023

    New EU measures against money laundering and terrorist financing

    Banks in the European Union (EU) are amongst entities that may be required to verify their customers’ identity, what they own and who controls the company, under proposed new European anti-money laundering and counter financing of terrorism (AML/CFT) package approved last week by EU lawmakers.


    Read More

  • SUSTAINABILITY

    March 2023

    Population Growth and Rise of the Middle Classes and Urbanization

    According to the United Nations the world's population is expected to increase by more than 30 percent to upwards of 9 billion between now and 2050.

  • Trade Finance

    March 2023

    Guess the word

    Hint: The seller/exporter in a letter of credit.

  • TRADE FINANCE

    March 2023

    London court says sanctions did not allow UniCredit to refuse L/C payments

    A court in London gave judgment last week in favour of Celestial Aviation Services in its case against UniCredit after determining that the aircraft lessor made valid demands under letters of credit (L/Cs) last year while UniCredit's view that the demands were invalid was wrong.

    The commercial court found that a German unit of Italy's UniCredit was wrong to withhold US$68 million in payment guarantees owed to Celestial claiming that it was prohibited from making payments because of sanctions imposed on Russia by the EU, the UK and US following Russia's invasion of Ukraine.


    Read More

  • Trade Finance

    March 2023

    Crossword

    Test you knowledge on Trade Finance.

    Start Crossword

  • TRADE FINANCE COMPLIANCE

    March 2023

    US treasury secretary announces international commitment to enhance beneficial ownership transparency

    The US treasury department’s Financial Crimes Enforcement Network (FinCEN) on Friday published its first set of guidance materials to aid the public, and in particular the small business community, in understanding upcoming beneficial ownership information reporting requirements taking effect on 1 January 2024.


    Read More

  • Trade Finance

    March 2023

  • TRADE FINANCE COMPLIANCE

    March 2023

    FinCEN publishes first guidance on beneficial ownership reporting requirements for businesses

    The US treasury department’s Financial Crimes Enforcement Network (FinCEN) on Friday published its first set of guidance materials to aid the public, and in particular the small business community, in understanding upcoming beneficial ownership information reporting requirements taking effect on 1 January 2024.


    Read More

  • Sustainability

    March 2023

    History of Greenwashing

    Examples of “greenwashing” first occurred in the 1960s when companies were making efforts to improve their public image considering the emerging environmental movement. The concept of greenwashing first appeared in the early 1970s when oil companies launched campaigns to counter claims that they were harming the planet. The term “greenwashing” was the idea of an American environmentalist Jay Weterveld in 1983 when he read a note in a hotel in Fiji asking guests to re-use towels to save the environment and ecosystem of Fiji, claiming that it was a company water conservation strategy, although at this time the hotel was expanding into local ecosystems.


    Find out more

  • TRADE FINANCE COMPLIANCE

    March 2023

    FATF updates guidance on beneficial ownership

    The Financial Action Task Force (FATF) has published its updated guidance paper outlining tougher global beneficial ownership rules aimed at preventing criminals from hiding their illicit activities and money behind secret corporate structures.


    Read More

  • TRADE FINANCE COMPLIANCE

    February 2023

    Russia’s membership of FATF suspended

    The members of the Financial Action Task Force (FATF) have agreed to suspend Russia’s membership of the global financial crime watchdog. They say Russia’s continuing and intensifying war of aggression against Ukraine runs counter to the FATF’s principles of promoting security, safety and the integrity of the global financial system.


    Read More

  • TRADE FINANCE COMPLIANCE

    February 2023

    Wolfsberg Group updates correspondent banking due diligence and financial crime materials

    The Wolfsberg Group has released version 1.4 of its correspondent banking due diligence questionnaire (CBDDQ) and version 1.2 of its financial crime compliance questionnaire (FCCQ), along with updated supporting guidance, glossary and FAQs documents.


    Read More

  • TRADE FINANCE COMPLIANCE

    February 2023

    British trade banks join forces with ICCUK to take action on duplicate financing fraud

    The majority of the UK’s trade banks have agreed to take part in a new initiative led by a unit of the International Chamber of Commerce United Kingdom (ICCUK) to strengthen the country’s finance industry against the impacts of duplicate financing fraud.


    Read More

  • TRADE FINANCE COMPLIANCE

    February 2023

    Wolfsberg Group updates correspondent banking due diligence and financial crime materials

    The Wolfsberg Group has released version 1.4 of its correspondent banking due diligence questionnaire (CBDDQ) and version 1.2 of its financial crime compliance questionnaire (FCCQ), along with updated supporting guidance, glossary and FAQs documents.


    Read More

  • SUSTAINABILITY

    February 2023

    Changing Global Climate

    There is common scientific consensus that the global average temperature is rising at an un-precedented rate.

  • TRADE FINANCE

    February 2023

    White paper explains how L/Cs may play a role in deep-tier supply chain finance

    The Asian Development Bank has published a white paper on deep-tier supply chain finance (DTSCF), which potentially extends financing access and transparency down the chain to even the smallest suppliers.

    The paper includes analysis of the role and different approaches of fintechs Skuchain, Banco and KashBank may take in the global realisation of this digital financial solution that can involve letters of credit (L/Cs).


    Read More

  • TRADE FINANCE COMPLIANCE

    February 2023

    IMF publishes new fact sheet on its role in AML/CFT efforts

    The International Monetary Fund (IMF) has published a new fact sheet on its work helping shape policies on anti-money laundering (AML) combatting the financing of terrorism (CFT) and counter-proliferation financing internationally and within its members’ national frameworks.


    Read More

  • Trade Finance

    February 2023

    Guess the word

    Hint: Another name for a Documentary Credit

  • Trade Finance

    Jan 2023

    Crossword

    Test you knowledge on Trade Finance.

    Start Crossword

  • TRADE FINANCE COMPLIANCE

    January 2023

    Impact on financial institutions of upcoming US beneficial ownership rule examined in new paper

    Financial institutions have so far not been provided the relief from the burdens of onboarding and customer due diligence they had hoped for as a result of the final version of the beneficial ownership rule issued in September by the US treasury department’s Financial Crimes Enforcement Network (FinCEN) according to a new white paper.


    Read Article, see Report

  • Sustainability

    January 2023

    Megatrend - Population Growth

    According to the United Nations the world's population is expected to increase by more than 30 percent to upwards of 9 billion between now and 2050.

     

    A large proportion of this population increase will occur in the world's less developed regions, including those in Africa, Asia and Latin America.

    Key factors behind the continuing population growth in less developed regions are lower rates of infant mortality and greater life expectancy thanks to improved standards of living. Future populations will therefore be larger and older.

    Find out more

  • TRADE FINANCE

    January 2023

    ICC publishes four guidance papers on documentary credit usage

    The International Chamber of Commerce (ICC) has published a compendium of four guidance papers on documentary credit usage for trade finance practitioners.

    The papers contemplate requirements for on board notation; the principle of strict compliance; use of drafts under documentary credits, and simple documentary credit format.


    Read More

  • Trade Finance

    January 2023

    Guess the word

    Hint: The seller/exporter in a letter of credit.

  • Sustainability

    January 2023

    Palm Oil

    Your bank has a position statement on palm oil that states

    The bank will only support transactions involving RSPO certified palm oil and only where the supplier employs RSPO approved supply chain certification mechanisms

    What does RSPO certified mean?

    Established in 2004, the Roundtable on Sustainable Palm Oil (RSPO) promotes the production and use of sustainable palm oil.

    The RSPO has developed a set of environmental and social criteria which companies must comply with in order to produce Certified Sustainable Palm Oil (CSPO). When they are properly applied, these criteria can help to minimize the negative impact of palm oil cultivation on the environment and communities in palm oil-producing regions.

    Find out more

  • TRADE FINANCE COMPLIANCE

    December 2022

    Inadequate due diligence and beneficial ownership transparency facilitating US$23 billion illegal fishing industry

    Lax supply chain due diligence and a lack of beneficial ownership transparency are amongst factors allowing one-fifth of the global fisheries market to be captured by operators involved in illegal, unreported, and unregulated (IUU) fishing, a new report from the Financial Transparency Coalition (FTC) and a group of 11 NGOs from across the world has revealed.


    Read Article, see Report

  • TRADE FINANCE

    December 2022

    Maersk and IBM abandon ship on blockchain trade platform with digital L/C potential

    Insufficient industry support for their digital venture has caused international shipping giant A P Moller - Maersk (Maersk) and IBM to abandon their joint Tradelens blockchain-based supply chain platform initiative for international shipping.

    Until recently the initiative has been working with banks and other partners on solutions combining digital letters of credit (L/Cs) with other trade finance instrument issuance, including the Tradelens electronic bill of lading (eBL) that aimed to simplify the issuance, transfer and surrender of original shipping documents by digitising the transfer of title process.


    Read More

  • TRADE FINANCE

    November 2022

    EBRD's green trade growing in L/C supportive TFP

    Green trade under the European Bank of Reconstruction and Development's (EBRD's) Trade Facilitation Programme (TFP) is growing, according to the bank's Task Force on Climate-related Financial Disclosures (TCFD) Report 2021.

    Published to coincide with the COP 27 climate change conference in Egypt this month, the bank's third annual TCFD report discloses EBRD's climate risk assessment methodologies and initial portfolio risk assessments.


    Read More

  • TRADE FINANCE

    November 2022

    L/Cs in sustainable financings gaining traction, despite lack of common standards and market definition

    While earlier efforts to link sustainable trade finance principles with letters of credit (L/Cs) failed to gain traction, L/Cs in financings with clear climate targets are gradually emerging.

    But unlike the capital markets that have the Green Bond Principles and the debt markets have the Green Loan Principles to guide best practice, sustainable trade finance lacks common standards and market definition.


    Read More

  • TRADE FINANCE

    November 2022

    ICC Standards for Sustainable Trade and Sustainable Trade Finance

    The Roadmap and Vision for Industry, Policymakers, and Traders Worldwide - is the first output of a newly-launched ICC project aiming to align on a consistent definition of sustainable trade and trade finance, set out what specifically constitutes a sustainable trade transaction, and propose a framework and assessment methodology to qualify trade transactions for this purpose.

    The first stone of the project is the positioning paper which is laying ground on the definitions of sustainable trade and trade finance, a comparison with other sustainability measures and why those can or cannot be applied for trade finance.


    Read More

  • TRADE FINANCE COMPLIANCE

    November 2022

    FATF seeks comments on legal aspects of beneficial ownership

    The Financial Action Task Force (FATF) is seeking comments to its updated guidance paper to its Recommendation 24 (R24) on the transparency and beneficial ownership of legal persons.


    Read Article, see Report

  • TRADE FINANCE COMPLIANCE

    November 2022

    Wolfsberg Group updates and publishes guidance on correspondent banking

    The Wolfsberg Group, the association of global banks that aims to develop frameworks and guidance for the management of financial crime risks, has updated and published its Financial Crime Principles for Correspondent Banking.


    Read Article, see Report

  • Error processing SSI file
  • TRADE FINANCE

    October 2022

    Decreased L/C default rate helps trade, supply chain and export finance credit risk back to pre-pandemic levels, ICC reports

    Default rates for both export and import letters of credit (L/Cs) decreased in 2021 compared with 2020 according to a new report produced by the International Chamber of Commerce (ICC) in partnership with Global Credit Data (GCD) and Boston Consulting Group (BCG).

    Widely seen as the global authoritative source of trade default rates across all asset classes, the ICC 2022 Trade Register Report also confirmed that credit risk in all types of trade, supply chain and export finance has fallen back to pre-pandemic levels.


    Read More

  • TRADE FINANCE

    October 2022

    Standard Bank responds to increased L/C demand in the African market

    Post-pandemic economic headwinds, supply chain disruption and increased requirements to align with environmental, social and governance (ESG) considerations have prompted a recalibration in the perceived risks faced by trading counterparties according to Standard Bank.

    It says this has led to an increase in demand for letters of credit (L/Cs) and L/C confirmations to mitigate buyer payment risk, financial institution payment risk and country risk.


    Read More

  • TRADE FINANCE COMPLIANCE

    October 2022

    Basel AML Index 2022 provides ML/TF risk scores based on data from 18 trusted sources

    The Basel Institute on Governance has published its independent annual ranking that assesses the risk of money laundering and terrorist financing (ML/TF) around the world.


    Read Article, see Report

  • TRADE FINANCE COMPLIANCE

    September 2022

    Tightening the screws on Russian sanctions, more help expected from US banking and financial services sector

    The banking and financial services sectors have been “enormous partners” throughout the information sharing effort to combat Russian sanctions evasion according to the US justice department’s director of Task Force KleptoKapture, Andrew Adams.


    Read Article, see Report

  • TRADE FINANCE

    September 2022

    US commerce department faces criticism over L/C guarantee demands

    Republican lawmaker Andy Harris has sent a letter to US commerce secretary Gina Raimondo regarding the National Telecommunications and Information Administration's (NTIA's) requirements for its Infrastructure Investment and Jobs Act (IIJA) broadband programmes.

    The letter expresses the US congressman's concerns about the letter of credit (L/C) requirement included in the NTIA's two new grant funding programmes to stimulate the rollout across the US of broadband infrastructure.


    Read More

  • TRADE FINANCE COMPLIANCE

    September 2022

    Wolfsberg publishes RFI best practice guidance

    The Wolfsberg Group has published a guidance paper on requests for information (RFIs) as used in anti-money laundering and counter financing of terrorism (AML/CFT) transaction monitoring processes.


    Read Article, see Report

  • TRADE FINANCE

    September 2022

    RBI approves blockchain-based cross-border payment systems

    India's central bank has approved a second cohort of neo-banking companies in its regulatory sandbox programme that have proposed blockchain-based cross-border payment systems that could be used as an alternative to letters of credit (L/Cs) by some Indian exporters.

    The Reserve Bank of India's (RBI's) approvals come amidst a dollar crisis in global financial markets, which has prompted some exporters to switch from open account to L/C terms to minimise payment risks.


    Read More

  • TRADE FINANCE

    September 2022

    Pakistan eases restrictions for exporters opening L/Cs, continues to restrict non-essential imports

    Pakistan's finance minister, Miftah Ismail, has said he is not in favour of further relaxing restrictions on import letters of credit (L/Cs) imposed with the aim of protecting the country's depleted foreign reserves.

    Initially, the State Bank of Pakistan incrementally restricted the flow of imports and limited the number of L/C approvals for imports of all products. The government subsequently decided to lift the blanket import ban, and permit the use of L/Cs by Pakistan's exporters that require foreign goods to continue production.


    Read More

  • TRADE FINANCE COMPLIANCE

    September 2022

    FATF and INTERPOL joint initiative to prioritise cross-border tracing, seizure and confiscation of criminal assets

    Illicit asset recovery is set to play a more significant role in global efforts to deprive criminals of their ill-gotten gains with the announcement of a joint initiative launched by the Financial Action Task Force (FATF) and INTERPOL to recover criminal assets.


    Read More

  • TRADE FINANCE COMPLIANCE

    September 2022

    Landmark World Bank report kicks off review of risk-based AML/CFT approach

    Nearly a decade after the Financial Action Task Force (FATF) introduced requirements for National Risk Assessments (NRAs) of money laundering and terrorism financing (ML/TF) risks, the international community is at the right point to review the past 10 years and assess whether the risk-based approach to AML/CFT is developing as intended, according to the World Bank.


    Read Article, see Report

  • TRADE FINANCE

    September 2022

    L/C facilitates Reliance Industries' unexpected dramatic entrance in the wheat market

    Best known for its activities in the energy, petrochemicals and textiles sectors, a subsidiary of Indian conglomerate Reliance Industries - the country's largest publicly traded company - has become India's second largest wheat exporter, despite a ban on wheat exports.

    On 13 May, India announced a sudden ban on overseas sales of wheat except for exporters who already had letters of credit (L/Cs) for exports of the grain in place.


    Read More

  • TRADE FINANCE

    September 2022

    Standby L/Cs preferred collateral choice for captive insurance companies

    Standby letters of credit (L/Cs) are still the most popular collateral choice for captive insurance companies according to the senior vice president and manager of Comerica Bank's global and captive insurance group, Martin Ellis.

    He says that usage of standby L/Cs is also continuing to grow amongst the insurance companies set up and wholly owned by non-insurance companies to act as a direct insurer or reinsurer for a parent company and its subsidiaries.


    Read More