In today’s increasingly globalized world, more than 80 percent of trade transactions are conducted on “open account” terms, in which trading parties forgo traditional, document-based financing instruments and settle transactions by wire transfer.
While lowering financing costs and shortening payment chains, open account settlement can leave banks without access to information regarding the goods, shipping vessels, or transport routes associated with trade transactions—information that can be critical to assessing and mitigating sanctions risks. Financial institutions processing trade transactions are thus increasingly vulnerable to malign actors seeking novel ways to exploit global supply chains and conceal illicit activity under the cover of international trade.
Join moderator Juan Zarate and a panel of experts including Ami Daniel of Windward, Ekaterina (Katya) Hazard of K2 Integrity, and Tyler Nielson of Sanctions Advisory ApS, on 28 January 2021 to explore the emerging risk management challenges in the trade and maritime sectors, explain the obligations and expectations facing financial institutions and other private-sector actors operating in this space, and discuss risk mitigation tools and strategies for banks involved in open account trade.
