From London to New Delhi to New York, this issue brings together the latest laws, rulings, and rule-set debates in trade finance. We examine the UK’s new “failure to prevent fraud” law, New York’s adoption of the 2022 UCC amendments, a comparative look at URDG and the UN Guarantee Convention, and a Delhi High Court judgment closing a 25-year LC dispute.
The ICC Banking Commission advanced priorities on Basel III, digitalisation, and the prospect of UCP revision, while issuing new Technical Advisory Briefings on confirmation and payment under UCP600. Alongside these policy debates, DCW has released updated LC issuance data for the top 600 U.S. banks, providing a snapshot of market activity. Recent rulings in Singapore and Sri Lanka, together with ongoing U.S. litigation in the Vesttoo matter, show how procedural disputes and enforcement actions continue to shape outcomes for banks and beneficiaries.
The UK’s Economic Crime and Corporate Transparency Act 2023 introduced a sweeping “failure to prevent fraud” offence, effective September 1. Large organizations, including global banks with UK links, face strict liability if employees or affiliates commit fraud for their benefit. To avoid prosecution, institutions must show “reasonable procedures.” The Serious Fraud Office has already signaled a proactive enforcement stance.
Two frameworks govern independent guarantees worldwide: URDG 758, a set of voluntary practice rules published by the ICC, and the UN Guarantee Convention, an international treaty that becomes binding law for states that ratify it. This analysis traces their history, scope, and adoption, weighing which structure delivers greater clarity and practical utility for banks and corporates.
On June 11, 2025, New York enacted the 2022 UCC Amendments, modernizing commercial law for the digital age. The law recognizes blockchain records, tokenized payment rights, and electronic signatures, while clarifying branch separateness under Article 5. These changes bolster New York’s position as a global hub for trade and finance.
A 25-year legal battle in Kannu Exports v. BNP Suisse has concluded with the Delhi High Court siding with the beneficiary. The judgment rejected alleged discrepancies under UCP500 and reaffirmed the bank’s obligation to honor a compliant presentation. The case underscores the resilience of UCP principles, and the risks of prolonged litigation.
The latest available LC issuance data for the top 600 U.S. banks as of 2Q25. The report details net amounts outstanding across standby, financial, performance, and commercial LCs—providing a clear snapshot of quarterly trends and institutional activity.
A Nigerian man has been extradited from France to face multiple fraud charges in the US, including tax refund schemes and a fake standby LC investment plan. Authorities credit international cooperation in bringing him to court, with the case now in the hands of the Complex Frauds and Cybercrime Unit.
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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
