Singapore’s High Court has ruled in favour of J P Morgan Chase Bank after it was sued for refusing to pay a coal trader under two letters of credit (L/Cs) because its sanctions screening revealed that doing so would have… Read More ›
letter of credit
Bangladesh Bank suspends L/Cs to counter TBML and preserve foreign exchange
Bangladesh Bank has suspended 100 letters of credit (L/Cs) for over-invoicing, according to the central bank’s governor, Abdur Rouf Talukder. The suspensions are part of the bank’s efforts to prevent trade-based money-laundering (TBML) via mis-invoicing and preserve foreign exchange reserves… Read More ›
Back-to-back and standby L/Cs used in sanctions evasion and money laundering says MENA financial crime guide
Back-to-back letters of credit (L/Cs) can be used as a sanctions evasion technique according to multiple sources who contributed to a new guide published by the Middle East and North Africa (MENA) chapter of the Global Coalition to Fight Financial… Read More ›
Trade finance banks risk higher penalties under revised US antiboycott rules
Trade finance banks operating in the US risk higher penalties under a policy issued by Washington aimed at strengthening and enhancing enforcement of the antiboycott rules administered by the US department of commerce. The rules prohibit US support for unsanctioned foreign… Read More ›
Russia and Iran sign agreement to facilitate bilateral trade with L/C alternative
Russia’s Agency for Export Credit and Investment Insurance (EXIAR) has signed an agreement with the Export Guarantee Fund of Iran (EGFI) to provide export insurance for sellers in both countries. Export insurance provides an alternative to letters of credit (L/Cs)… Read More ›
New report sheds more light on nearly US$1 billion diverted from South Sudan’s L/C programme
Almost U$1 billion supplied to South Sudan through a credit line issued in US dollars in the form of letters of credit (L/Cs) from Qatar National Bank (QNB) and Kenya’s Stanbic Holdings to support the country’s efforts to import food,… Read More ›
TBML top of emerging financial crime risks in Asia-Pacific says LexisNexis
Trade-based money laundering (TBML) has ranked top of the list of emerging financial crime risks in the latest LexisNexis True Cost of Compliance Study – Asia-Pacific Edition. Crimes involving digital payments and cryptocurrency, third parties – including TBML, money mules,… Read More ›
UBAF settles for nearly US$8.6 million for “reckless disregard” of Syria sanctions in internal transfers and L/C transactions
Union des Banques Arabes et Francaises (UBAF) of France has reached a settlement with the US treasury department’s Office of Foreign Assets Control (OFAC) in which the bank has agreed to remit US$8,572,500 to settle its potential civil liability for… Read More ›