Thank heavens: Why banks can keep calm and carry on after Celestial Aviation

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.

Thank heavens: Why banks can keep calm and carry on after Celestial Aviation

It’s the kind of scenario that keeps a bank’s in-house trade finance lawyer up at night: Having received a complying demand under a documentary instrument, determining if the applicable sanctions laws and regulations prohibit the bank from paying that demand.

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