Trade Finance Due Diligence Advisory Services

Trade Finance Due Diligence is required by numerous global jurisdictions and regulatory agencies. Required Trade Finance Due Diligence is very technical and very specific, and must comply with US Anti-Money Laundering and Counter-Terrorism Financing laws.

The last two decades have seen a significant rise in the push for globalism and open markets which have resulted in an explosion of foreign trade activity. The last twenty years have also seen an astronomical rise in global terrorism.

Both of these trends represent structural changes in economics and governance. Although these trends are diametrically different, one positive with the explosion of global trade, and the other negative with just an explosion, it is not surprising that the government reacts to both in very much the same way, increased regulation.

Regardless of whether it is skyrocketing world trade or terrorism, it is the inherent nature of government to want more restrictions, more regulations, more compliance paperwork and more fees. In this case, it is more than just the government’s natural tendency towards regulation at work because global terrorism has taught prudent people to be more diligent. Thus we must acknowledge that expanding global trade opens the door for increased incidence of cross-border terrorist incidents. This further fuels the government’s instinctual avidity to regulate. It’s a perfect storm of regulatory desire.

Trade Finance Due Diligence Requirements Keep Growing

Because of these and other factors, there is 100% certainty of increased compliance, Trade Finance Due Diligence, and paperwork for those who do business importing, exporting, trading or financing trade. Trade Finance Due Diligence and compliance are no longer requests, they have become legal responsibilities. In the US, recent amendments to the Anti-Money Laundering and Counter-Terrorism Financing Acts along with the advent of the Patriot Act provide crystal clear indications of more government requirements to come.

In addition to terrorism, which continues its efforts to reach our shores, money laundering and drug trafficking also pose very real threats to the United States. If you’re involved in international trade or international trade finance, you will have to accept a disproportionate share of the effort to combat these evils.

Expect the demand for increased Trade Finance Due Diligence and compliance to grow further. Additional Trade Finance Due Diligence requirements will disproportionately impact small businesses involved in global trade or trade finance. Large companies and large banks will accept new due diligence requirements, new regulations and new compliance requirements in stride. Performing additional due diligence will have no effect on Citibank or Wal-Mart.

Trade Finance Due Diligence Services We Provide

We perform a full complement of Trade Finance Due Diligence on counter-parties as part of any trade financing transaction in which we or any client of Global Trade Funding are involved. We understand the importance of thoroughly vetting all parties to financing transactions, thus ensuring that no fraudulent or unworthy applicants filter into the day to day operations of the business our business or that of our clients. We also believe that complete, transparent Due Diligence investigations are an essential element of any transaction and form the basis for healthy business relationships.

Additionally, we find that many clients simply aren’t prepared or equipped to comply with new Trade Finance Due Diligence requirements that continue to grow inexorably. Part of our Client Advisory service is to perform these procedures for all transactions in which we are involved as a matter of due course so as to minimize the burden on our clients.

Specifically, our Trade Finance Due Diligence service performs all of the due diligence required by United States laws and government regulations, including the Patriot Act, the Anti-Money Laundering Act, the Counter Terrorism Financing Act and all of the due diligence required by Know Your Client (KYC) regulations. We perform these procedures for all trade financing transactions in which we are involved as a matter of due course.

Key Elements of Trade Finance Due Diligence

Performing Trade Finance Due Diligence properly is a complex and time-consuming process that requires a great deal of skill. Many in the industry undertake what they believe to be due diligence by typing names and phrases into search engines. Because this produces unverified results that can be manipulated, and is just as likely to produce fake news as anything else, it does not meet Trade Finance Due Diligence requirements. Real Trade Finance Due Diligence incorporates these key elements to comply with anti-fraud and anti-money laundering regulations currently in force.

  1. To establish compliance with Anti-Money Laundering regulations.
  2. To establish the real identities of individuals involved in the transaction.
  3. Ascertain that the individuals possess the right qualities to carry out the duties expected of them.
  4. To check international fraud registers and criminal record bureaus.
  5. To establish the Ultimate Beneficial Owners (UBO) of the company or companies.
  6. To ascertain companies are correctly incorporated and their incorporation is current and not hindered by any legal action or pending actions.
  7. To ascertain that the people and the business involved have the financial capability to deliver what is required of them.
  8. To obtain a full understanding of the source and history of their investment funds.

Trade Finance Due Diligence Key Takeaways

Trade Finance Due Diligence on counter-parties is an essential element of any trade funding transaction. In addition to ensuring that Global Trade Funding clients fully comply with the law, Due Diligence forms the basis of any mutually beneficial business relationship. We understand the importance of vetting applicants, so performing thorough Trade Finance Due Diligence procedures for all transactions in which we are involved both protects and minimizes the burden on our clients.

Our Trade Finance Due Diligence advisory service performs all Trade Finance Due Diligence required by US law, including the Patriot Act, Anti-Money Laundering Act, Counter-Terrorism Financing Acts and Know Your Client (KYC) regulations. We perform these procedures for all transactions in which we are involved according to strict, consistent guidelines.