Some light at the end of the regulatory tunnel for trade finance

With 90% of world trade transported by sea, and trade increasingly being used as a mechanism to facilitate financial crime, the need for technology to help solve compliance challenges is more crucial than ever. - Ben Luddington PWC director Forensics.

Following the recent announcement of our strategic alliance with PwC,  I have been in Hong Kong and Singapore to meet with the PwC teams in the region and with clients. This of course had nothing to do with the Hong Kong rugby 7s being held that week.

Following the advisory from the United Nations entitled "Managing sanction risk in the Maritime transportation sector " the first of its kind from the UN, we have seen recently both the MAS in Singapore and the HKMA in Hong Kong issue clear guidance on best business practice for financial institutions in the trade and commodity financing sectors. The guidance defines very clearly what steps banks operating in these regions should incorporate within their screening and monitoring systems and the requirement to capture and record this process. 

This seems like a very sensible step forward by both these market regulators and  I am sure that financial institutions operating in other jurisdictions around the world would welcome similar guidance  from their own market regulators. 

For those that haven't seen this guidance you can download a checklist below: