The ICC Banking Commission 2013 Annual Review

The ICC Banking Commission 2013 Annual Review

Review of 2013: With 83 years of experience and more than 600 members in 93 countries, the ICC Banking Commission — the largest Commission of ICC, the world business organisation — has rightly gained a reputation as the most authoritative voice in the field of trade finance.

The Advisory Board

The International Chamber of Commerce (ICC) announced the creation of an Advisory Board to provide strategic direction for its Banking Commission.

The launch of the Banking Commission Advisory Board was a major milestone. This body will advise the Banking Commission’s Officers and the ICC Secretariat on key strategic vision, issues and opportunities. In addition, the group of Officers has been reorganized and expanded into what is now the Commission’s Executive Committee. The ICC Banking Commission Advisory Board held its inaugural meeting in London on 24 January of 2013.

The Executive Committee consists of an international network of experts who have agreed to give ICC salient help and direction on a regular basis on issues including organizational development, policy, partnerships and outreach. Under the leadership of Kah Chye Tan, Chair of the ICC Banking Commission, the Advisory Board and the Executive Committee consist respectively of 12 and 9 members. Thierry Senechal, Senior Policy Manager of the Banking Commission acts as Executive Secretary for both the Advisory Board and Executive Committee and is delegated the responsibility for the day-to-day management of the commission by ICC.

Four Appointments to its Banking Commission Executive Committee

Driven by the ever-expanding needs of the market, the ICC Banking commission has been growing in both size and scope to remain a relevant and recognized authority within the ever-evolving trade finance industry. We have taken several steps this year to maintain our position as the leading global rule-making body for the banking industry.

Announced during the ICC Banking Commission Meeting held in Vienna in October of 2013, the Commission expanded its leadership structure by appointing four new officers to its Executive Committee to provide technical direction to the leading global policy and rule-making body for the banking industry. Changes in the Banking Commission scope of work triggered an opportunity to add new officers in order to align the commission’s resources to new mandates and meet the aspirations of the renewed membership. This structural growth is in line with the commission’s objective to remain a relevant and recognized authority within the ever-evolving trade finance industry.

Three new Technical Advisors for the Banking Commission

In July 2013, the Banking Commission announced the handing over of the technical advisory role from longstanding Senior Technical Advisor, Gary Collyer to three newly appointed Technical Advisors.

The ICC Banking Commission has considerably developed its rulemaking activities in recent years. As a result, it recognizes the need to expand its advisory function for these newly-established standards and be in a position to develop our standard-setting initiatives ever further. The three new technical advisors will not only administer official opinions but also answer occasional technical and educational queries received on an informal basis.

Today, the ICC Banking Commission provides official opinions on the interpretation of the long-established Uniform Customs and Practice for Documentary Credits (UCP), Uniform Rules for Collections (URC), Uniform Rules for Demand Guarantees (URDG) and Uniform Rules for Bank-to-Bank Reimbursements (URR) and more recently, the newly approved Uniform Rules for Forfaiting (URF) and Uniform Rules for Bank Payment Obligation (URBPO).

ICC Banking Commission Opinions are an important resource for lawyers, bankers, judges and other professionals and scholars in the industry and are often cited by courts to assist in dispute resolution. They were devised by the Banking Commission in response to the numerous and often complex problems encountered by the industry in establishing documentary compliance and to provide expert interpretation and analysis of ICC Banking rules in given situations.

A New ICC Banking Commission Compliance Group

The Banking Commission has decided to create a new ICC Compliance Group to respond to the increasing issues that the industry faces in meeting the regulatory requirements around compliance for financial institutions. In an effort to emphasize the importance of this matter, the Compliance Group will draft guidance, policy submissions and responses to regulators, industry groups and members on all topics related to compliance issues affecting the trade finance industry.

To ensure that the work we are undertaking will not only be applicable but become a valuable resource to the public, this Group will interact with key stakeholders of this industry including the Financial Action Task Force (FATF), The Wolfsberg Group, key players in the finance industry as well as several other industry groups representing other actors in international trade.

A New ICC Banking Commission Compliance Group The Banking Commission has decided to create a new ICC Compliance Group to respond to the increasing issues that the industry faces in meeting the regulatory requirements around compliance for financial institutions. In an effort to emphasize the importance of this matter, the Compliance Group will draft guidance, policy submissions and responses to regulators, industry groups and members on all topics related to compliance issues affecting the trade finance industry. To ensure that the work we are undertaking will not only be applicable but become a valuable resource to the public, this Group will interact with key stakeholders of this industry including the Financial Action Task Force (FATF), The Wolfsberg Group, key players in the finance industry as well as several other industry groups representing other actors in international trade.

ICC Banking Commission Legal Commitee

The Commission was also proud to launch the first ICC Banking Commission Legal Committee during our bi-annual Meeting in Vienna in October 2013. Multiple legal challenges face our banks in the global economy. They essentially reflect the asymmetry between the emerging global rule of law and inconsistent laws and case law in the various jurisdictions.

Comprised of senior legal officers, the goal of this new legal group will be to offer to its members a discussion platform whose aim will be to help deal in a structured and consistent way with the various legal challenges of a legal nature facing members of the Banking Commission. It will have the objective of making proposals for action to the Banking Commission, formulating recommendations on Banking Commission activities to the extent that they involve legal aspects and drafting white papers on matters of general legal interest for the Banking Commission membership.