The guidance document updates the Wolfsberg Group’s Trade Finance Principles paper last revised in 2011. This broader industry edition now addresses the due diligence required by global and regional financial institutions of all sizes in the financing of international trade.
The document was updated to reflect the growing regulatory expectations, as well as the more stringent application of existing regulations faced by the industry today. The collaborative effort will help standardise the practice of financial crimes compliance for trade transactions.
The publication of this document is the culmination of more than two years of work undertaken by the organisations and their members.
“In keeping with the traditional work of the ICC Banking Commission, this guidance on sound financial crimes risk management for the traditional trade products follows in the steps of the UCP, URC etc. in setting standards by which banks should conduct their trade business and to provide a sound basis for the continuation of the finance of international trade by banks,” said Olivier Paul, Head of Policy of the ICC Banking Commission.
In keeping with the traditional work of the ICC Banking Commission, this guidance on sound financial crimes risk management for the traditional trade products follows in the steps of the UCP, URC etc. in setting standards by which banks should conduct their trade business…
“When the leading industry associations work together, a stronger and universally acceptable standard of behaviours can be developed and adopted by all of the global trade finance community regardless of size,” said Tod Burwell, BAFT president and CEO.” These principles take into account the difference in development, cultures and size of all banks involved in trade finance and are not specific to any one country.”
“The extensive collaboration between the Wolfsberg Group, the ICC and BAFT to enhance the Wolfsberg Group’s 2011 Trade Finance Principles paper will serve a much wider number of foreign investors and, as a result, ensure their applicability more broadly across the industry. This publication is particularly timely in light of the recent focus on international trade flows and correspondent banking. This effort demonstrates the impact that such joint work can have on the industry and will no doubt drive further efforts on other issues in the future,” said Tracy Paradise, Executive Secretary of the Wolfsberg Group.