January 21, 2023 at 11:45 am #1854
Compliance in trade finance due diligence relates to:
- Know your customer (KYC): Verifying counterparties (corporations and banks) as part of “know your customer” regulations.
- International Sanctions: Ensuring that all parties to a transaction undergo a “sanction screening”, using complex matching algorithms against official sanction lists, including the Office of Foreign Assets Control (OFAC), the European Union (EU), and the United Nations (UN).
- Anti-money-laundering (AML) and Counterterrorist Financing (CTF): Detecting and preventing money laundering and terrorist financing by using “red flags” and IT supported behavioral profiling techniques, and reporting suspicious activities to the authorities.
- Dual Use Goods: Preventing transactions from including weapons of mass destruction and dual-use goods (dual-use software, technology, documents, and diagrams) which can be used for civil and military purpose by using “red flags” and IT supported screening methods, and reporting suspicious activities to the authorities.