From digital trade to defense finance, this month we're looking at how law and policy continue to evolve across key markets.
China’s consideration of UNCITRAL’s Model Law on Electronic Transferable Records (MLETR) marks a major step toward digital trade integration, while France’s adoption of electronic transferable titles moves the EU closer to legal interoperability. A new whitepaper on defence finance urges a fundamental rethink of compliance—calling on lenders to align sanctions, export controls, and ESG with today’s security and geopolitical realities.
Recent court rulings in Singapore and Uganda add to a growing body of LC-related decisions underscoring the continuing importance of documentary credits in commercial law. Also featured this month: Groupe BPCE’s landmark “European Defence Bond,” IIBLP’s new ISP98 model form for government standbys, and a look behind the numbers in DCW’s latest U.S. LC statistics.
France has modernized its trade law to recognize electronic transferable titles, aligning with UNCITRAL’s MLETR and EU standards. A 2025 Decree defines what qualifies as a “reliable method,” setting criteria for identification, integrity, and certification—steps that could strengthen cross-border interoperability for digital trade documents.
A new whitepaper argues that financial institutions can fund legitimate defence activity without compromising compliance. It calls for harmonized bank policies, a “Compliance Passport,” and even a new Defence, Security and Resilience Bank to support sanctioned but necessary sectors. The paper also proposes redefining ESG to include “Security” alongside environmental and social objectives.
As UNCITRAL’s Model Law on Electronic Transferable Records (MLETR) gains momentum worldwide, China is evaluating adoption. This in-depth analysis explains how the MLETR builds on earlier UNCITRAL principles and replaces the concept of “uniqueness” with “control”—a key shift enabling secure, transferable e-bills of lading and other digital trade documents.
From the UK’s new “failure to prevent fraud” offence to tightening export controls and sanctions, experts at the London Trade Compliance Annual Meeting examined the growing complexity of global risk management. Panels explored deceptive shipping, dark-fleet vessel ownership, and the dangers of excessive de-risking, urging stronger due diligence frameworks across trade finance.
New York: The court upheld summary judgment for the airline, finding that the lessor breached a Boeing 767 lease and wrongfully drew on a standby LC. Technical compliance was no defense; retention of proceeds amounted to conversion.
Authorities in Ahmedabad are investigating six individuals linked to Prizam Alliance Pvt Ltd over an alleged ₹8.5 crore fraud involving a forged LC and fabricated demat account. The case, centered on a pharmaceutical trader deceived by a fake LC routed through ICICI Bank, highlights growing document forgery risks in India’s trade and investment sectors.
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Chris Sandler is the COO of the Institute of International Banking Law & Practice, the organization which produces DCW. Reach Chris at sandler@iiblp.org
