There is a common miss-conception that four or five multiple banks must be involved to manage letter of credit transactions. These multiple banks include credit issuing banks, advising banks, negotiating banks, confirming banks, and reimbursing banks. What is less understood is that these “banks” are functions, not necessarily physical banks. The trade finance functions these banks perform in a transaction can be done by separate banking institutions or by one bank under UCP 600 guidelines (Uniform Customs and Practice for Documentary Credits, ICC Publication 600).
Anti-money laundering is the process of financial institutions and other business entities using in-house (sometimes assisted by external parties – more on this to come) methods to address the risks posed by Trade-Based Money Laundering.
We heard from Bolero’s Jacco de Jong at the BCR Supply Chain forum in London. Bolero has a vision for trade digitisation. Bolero is about connecting parties, banks and networks… read more →
At Trade Finance Global we get asked a lot of questions around Letters of Credit, so we’ve put together a quick cheat sheet on LCs, payment times and the presentation… read more →
Here at Trade Finance Global, we speak to many organizations and institutions regarding their Letters of Credit. From looking at possible modifications to (and variations of) existing Letters to the… read more →