MENA FCCG Contributes to Article on Trade Finance Global (TFG)
The article titled “Navigating trade-based financial crime: Impact of UCP 600 and ISBP 821E articles” was published by TFG on June 4th 2024. The article is co-authored by Michael Matossian, Arab Bank Chief Compliance Officer and MENA FCCG Founder and Deputy Chair and Amjad Batayneh, Trade Finance Regulatory Lead – Arab Bank.
The article seeks to shed light on the interplay between combating Trade-Based Financial Crime (TBFC) and the guidelines established by the International Chamber of Commerce (ICC) to standardize documentary credit processes including the Practice for Documentary Credits (UCP) and International Standard Banking Practice (ISBP). As financial institutions seek to ensure compliance with international ICC guidelines while combating TBFC, they face an array of challenges that the article has served to shed light on. These include lack of standardized trade documentation, presence of “Documents accepted as presented” in trade transactions, as well as the limited recognition and acceptance of Sanctions Clauses as a means for organizations to protect against sanctions violations.
It is worth noting the article is a continuation to MENA FCCG’s ongoing efforts to tackling TBFC for a more transparent and stable global trade system. MENA FCCG published a TBFC Reference Guide in October 2022 and launched a Combating TBFC Program in 2024 in collaboration with the American University of Beirut and Global Coalition to Fight Financial Crime. For details visit: www.menafccg.com
