Daniel Soriano’s Post

📊 Navigating regulatory compliance in trade finance can be challenging for banks. This blog post shares best practices to help financial institutions manage the complexities and stay compliant with global trade regulations. Essential reading for trade finance professionals! 🛡️ Read more: Blog Link https://hubs.ly/Q02M8HDJ0 #TradeFinance #RegulatoryCompliance #Banking #GlobalTrade

TradeFinance-Afrik helps you better understand the most used trade finance instruments in International Trade.

A letter of credit is an important tool for businesses to ensure safe transactions between parties. It is a document issued by a bank/ financial institution that guarantees payment to a specific individual/company, provided certain conditions are met. The document is usually used in international trade to ensure that the buyer is able to pay the seller for goods/services they have received. It is also known as a documentary credit. The importance of the letter of credit lies in the following: •Provides security to both parties in a transaction, as it ensures that payment will be made as long as the terms of the letter of credit are met. •Reduces the risk of fraud or non-payment and encourages buyers and sellers to do business without fear of non-payment. •Establishes trust between the parties involved in the transaction, as they know that the bank will ensure that payment is made in the event of a dispute. • Reduces the time and cost associated with international transactions, as the document eliminates the need for third-party intermediaries. The link below contains a guide on Letters of Credit which was jointly prepared and launched by Trade Finance Global (TFG) and BAFT (Bankers Association for Finance and Trade), caters banking, business/trading sectors dealing with imports/exports under Letters of Credit. Where it touches the basics of Letters of Credit, in addition to associated issues like risk mitigation, financial crime, fraud, sanctions, discrepancies, dispute resolution and digitalisation. https://lnkd.in/ei8JuxtJ

Trade has a significant impact on economic development and prosperity. Data shows Trade Finance is a "low-default asset class". Good news from the UK on contingent instruments. However, application of new regulation on risk mitigation tools like credit insurance could affect pricing. #tradefinance #traderegulation #emergingmarkets

Geopolitical and macroeconomic forces are impacting the transaction banking industry, and how we conduct business today. The 2024 BAFT International Trade and Payments Conference will open next week with conversations around these extremely timely topics. Learn more and register now! https://lnkd.in/gdKRjMMQ

August 15th marked the sixth year of XTransfer, the cross-border trade payment and risk control service company. We've tracked its expansion into global markets, highlighting its service to SMEs and its AML efforts. Take a look below! #Payments #Trading #Fintech

We're pleased to announce that our Executive Director, André Casterman, is featured in Banking Risk and Regulation, shedding light on how digitalisation can close the widening trade finance gap.   Underlining the pressing need for additional investment and liquidity, André proposes the introduction of tradeable trade finance assets to capital markets. He also outlines the importance of proactive adaptation to regulatory changes, citing examples like the UK's Electronic Trade Documents Act and digitalisation in the trade finance landscape. Read the full article here: https://lnkd.in/gwhyA_Sy   #Capital #Digital #Regulation #Finance #Trade

This Lexology article centers around key EU legislation that has shaped banking regulation, particularly post-2011. The regulatory framework's evolution primarily responded to the 2007–2009 financial crisis and the eurozone crisis, leading to more centralized EU supervisory authorities. The article also examines Brexit's implications, including the Trade Cooperation Agreement and the 2023 Memorandum of Understanding, which enables UK-EU dialogue on financial regulation without restricting independent regulatory actions. You can read here to learn more about navigating post-Brexit regulations and the evolving regulatory landscape in Europe.

The role of UCP in Standby Letters of Credit transactions: Discover how UCP rules shape Standby Letters of Credit, making global trade smoother and more reliable for finance pros. Read more here.

D2LT’s Akber Datoo was delighted to have been able to work with Ellesheva Kissin on this insightful article on the Electronic Trade Documents Act (#ETDA). As quoted: “This innovation is much needed and has the potential to “streamline transaction and identity verification and audit processes” for the credit lenders that finance 80-90% of world trade”.    These are pioneering efforts that demonstrate the possible practical application of technologies like #blockchain to trade finance and the importance of the collaborative path that banks, regulators, and technology providers will need to follow to realise the much vaunted benefits of the ETDA.