Hai,
Compliance regulations have a very real effect on how trade finance transactions happen. At the forefront of international compliance regulations are the rules known as Know Your Customer or KYC.
Before a trade finance provider can proceed with a transaction, it must obtain a lengthy list of documents from its customer, investigate its legal structure, screen for politically exposed persons (Peps), score and classify risk, and archive the reviewed documents. Getting hold of the required documents can be challenging.
Transactions also undergo anti-money laundering (AML) scans in real time for sanctions violations and suspected money laundering, with many parties investigating alerts and reporting to the relevant authorities.
