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The Treacherous Water of Trade Compliance

With one regulatory change occurring every 12 minutes on average in financial sectors, demand for a more digital, joined-up approach that enables trade finance institutions to manage regulatory intelligence and risk more effectively has never been higher. Financial institutions play an important role in international commerce but failure to comply can result in crippling enforcement fines, damaged reputations and lost customers and revenues.

Recently, regulators have turned their focus to the maritime trade and shipping sectors, including the banks that finance world trade and the insurers that insure cargoes. In turn, trade finance and compliance teams are recognizing that regulatory risk can be associated with various aspects of a trade transaction: the goods being traded, the buyers and sellers, the cities and ports along the shipping route and the shipping vessels themselves.

However, managing this area of risk has been almost impossible in a way that is commercially viable and still allows financing to flow. This paper explores the tactics most commonly used today for trade-related risk management, such as leveraging automated technology that’s powered by reliable, resilient and secure data.

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This article is presented to you by Dow Jones.