The fruitful cooperation between “Wolfsberg, ICC & BAFT” has continued and led recently at end of March 2019 to a new paper, which incorporates two new combating financial crime guidelines; one on the subject of Bank to Bank Trade loans (also known as FI Trade Loans) and one on Open Account Trade Finance.
The original paper or 2017 published by the Trade Finance Principles Drafting Group and the ICC and the BAFT, included the combating financial crime guidelines for documentary credits, guarantees, and documentary collection
These principles apply to all banks regardless of size and do not require a bank to have significant electronic systems to be in place to apply them.
These principles are the basis of what was always considered to be “Good Banking Practice.”
Trade Finance Principles outlines the standards for the control of financial crime risks (FCRs) associated with Trade Finance activities.
.Build up a good Risk Based Approach plan for the trade finance and trade services activities.
.Control Mechanisms • Customer Due Diligence • Name Screening • Activity Based Financial Sanctions • Export Controls • Limitations
.Escalation Procedures • Introduction • Three Lines of Defense • Application
.AML guidance on the specific application of controls by Banks in the context of: • Documentary Credits (DCs), • Bills for Collection (BCs), • Guarantees and Standby Letters of Credit • Receivables • payables • Bank to Bank Trade loans and By explaining the following applications in respect of each of the A/M product: • Due Diligence • Review (risk indicators) • Screening • Transaction Monitoring
.Compliance, AML and trade finance dept.
.Training attendance certificate.