September Roundup
September's DCW is live! We have an exciting fresh batch of content that's just launched. Scroll
September's DCW is live! We have an exciting fresh batch of content that's just launched. Scroll
Expressing concern that a poorly constructed definition of trade finance could cause unintended negative consequences for the business, the ICC
Debate persists on when an independent undertaking is issued: upon leaving the issuer’s control or only when advised to the beneficiary. Various rules clarify issuance timing.
Fraud prevention is a crucial pursuit, but is an interim/hybrid solution requiring a beneficiary’s bank to vouch for the beneficiary the answer? Or does it introduce added risks?
Fraud prevention is an ongoing goal. In the world of commercial LCs, standby LCs, and demand guarantees subject to either UCP 600, ISP98, or URDG758, banks/guarantors are not responsible for vetting or otherwise verifying any signatures on any of the drawing documents received. Additionally, the basic premise of the various rules is that banks are not responsible to vet any content or otherwise go beyond the four corners of any required document to determine whether any statement is true or false.
However, with the exception of UCP, these same rules indicate that when a non-paper or data demand is allowed, the bank receiving the data is expected to authenticate the sender of the data (data could be transmitted by a beneficiary, its forwarder, transportation carrier, chamber of commerce, etc.) in some manner, understanding that different systems/platforms employ different methods to ensure an authentication process. eUCP would be the applicable rules for data demands allowed by a commercial LC.
When issuing banks insert complex reimbursement terms and self-serving conditions into their credits, it distorts the purpose of the product, causes problems for confirming banks, and drives exporters away from using LCs.
DCW Editorial Note: This previously unpublished material reflects the thinking and writing of Professor James E. Byrne over the period
Argentine lawyer Jorge Riva highlights how ICC rules are already providing an adequate environment for accommodating electronic means and how intense work continues for expanded use of electronic credits.
Houthi attacks in the Red Sea have led to major disruptions in global trade routes. With increased criminal activity and reduced visibility, banks are under increased pressure to meet sanctions and counter terrorism requirements.
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