With regard to how fraud may disturb a bank's obligation to honour under an independent undertaking, courts have used various qualifiers to describe the level necessary. In his expansive article, Dr. Alan Davidson explores the concept of "Letter of Credit Fraud" under law and in the courts.
Surrendered bills of lading are not addressed in UCP or ISBP, so ICC was approached to opine on the topic. Kim Sindberg details the initial ask and the guidance ultimately given.
Over-insurance is not cause for concern under the UCP 600 practice rules, but it may raise unsettling questions that need addressed from a risk perspective.
With the immediate future of the existing ISBP now settled, the question turns to whether the industry should consider extending its role in a careful, deliberate way to reflect the realities of modern documentary credit practice.
A study of 135,000 Vietnamese trading firms reveals some interesting data regarding what it takes to access trade finance products from banks. Hint: start-ups do not get access.
International trade depends on two inseparable flows: the movement of goods and the movement of money. When goods stop moving, payments stop moving — and when both stall, global trade seizes up. The near total closure of the Strait of Hormuz has exposed this reality with exceptional clarity.
Assessing the risk of breaching regulatory and compliance requirements while simultaneously examining for documentary compliance under stringent time pressures has complicated banks’ trade finance operations for years. A UK Supreme Court decision provides a degree of comfort and clarity to banks.
Following the majority vote against UCP revision by ICC National Committees, Dave Meynell offers evidence suggesting education and guidance is the prudent way forward.
For LC bankers to meet the challenge of price verification while upholding the independence principle, there's no substitute for exemplary knowledge of customers and their businesses.
Traditional financial metrics alone are no longer sufficient to support decision-making. Banks are now expected to consider sustainability risks, including environmental impact, supply chain practices, and governance standards. Doaa El Atawy explores the evolving role and where banks are headed.
Exactly what is an issuing bank authorizing or requesting a nominated bank to do when it requests the bank to “add its confirmation” to a credit? Several considerations and questions should be weighed by a would-be confirmer.
In project-driven industries, guarantees and standby letters of credit shape bids and contract negotiations early. Nadia Khirddine of AtkinsRéalis offers a corporate perspective on structuring these instruments and working effectively with banks.
