Trading with confidence through compliance
The rules governing international trade finance are increasingly complex. At Nordea, we work with you to achieve compliance, while helping you trade effectively.
Compliance: reducing your trade risk
Companies today face a growing body of regulation that affects their international trade - from anti-money-laundering rules to terrorism legislation. And the business impact for failing to meet these various standards can be significant. For example, in 2013, the US Treasury imposed penalties totalling $137 million on companies that traded with counterparties listed on its Office of Foreign Assets Control (OFAC) sanction list.
And the volume of regulation that affects international trade continues to grow, with initiatives such as the US Dodd-Frank Act, the EC's Basel III framework and Anti-Money-Laundering Directive all place greater compliance burdens on trade organisations.
Complying with those regulations isn't just about being prudent, it can help you reduce risk and do business more efficiently.
Regulations governing trade finance typically cover three broad areas:
- Anti-money-laundering - detecting and preventing money laundering by using behavioural profiling techniques, and reporting suspicious activities to the authorities.
- Counter-terrorism and international sanctions - ensuring that transactions and organisations subject to sanctions are screened, using complex matching algorithms against official sanction lists (OFAC, EU, UN).
- Verifying trade partners' banks as part of 'know your customer' (KYC) regulation.
You might be concerned that these checks will slow your transactions down, add extra costs, and even result in transactions being mistakenly blocked due to excessive caution.
It does not have to be that way. Compliance, when managed effectively by your trade finance provider, can actually be a facilitator for international trade.
Strengthening trading relationships
We have won awards across the Nordics for our trade finance. We offer a broad range of high-quality services, and most importantly a high level of trust, built up over years of experience. As part of our ethos of being a relationship bank, we want to share that experience with our customers - so we are always happy to talk about the implications of compliance for your business.
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