[Rasvya Banu]

No, PayPal is not just a fintech company; it’s a fintech empire! With millions of users worldwide, PayPal is widely regarded as one of the pioneering fintech companies. Since its inception, the fintech industry has experienced significant growth, with an expanding user base, a surge in startups, increasing job opportunities, and a rise in fintech-related courses. This exponential growth underscores the profound impact and widespread adoption of fintech solutions in today’s financial landscape.

[Rasvya Banu]

In my opinion, the recent Court of Appeal ruling favoring Kuvera Resources against JPMorgan in the trade sanctions lawsuit is a significant event for the financial industry. This case, which sets a precedent in Singapore, sheds light on the intricate challenges faced by global financial institutions when it comes to enforcing sanctions clauses in contracts. JPMorgan’s decision not to fulfill payments under letters of credit due to concerns about US sanctions highlights the fine line between regulatory compliance and fulfilling contractual obligations.

The court’s validation of the sanctions clause underscores the importance of conducting thorough due diligence and presenting compelling evidence to support claims of sanctions violations. This ruling stresses the importance of accountability and transparency in adhering to sanctions regulations, requiring financial institutions to navigate these complexities while maintaining integrity.

The decision to partially allow the appeal and grant damages demonstrates a nuanced understanding of the complexities involved in international trade. Overall, this ruling serves as a reminder for financial institutions to review their risk management practices and compliance frameworks. Remaining vigilant and taking proactive measures are essential for preserving trust and credibility in the ever-evolving global marketplace amidst changing regulatory environments. In essence, the Court of Appeal’s ruling highlights the significance of regulatory compliance and evidence in disputes related to sanctions, establishing a precedent for future cases involving international trade regulations.

[Rasvya Banu]

Thanks for your insights sir

[Rasvya Banu]

It’s clear that distributed ledger technology has the potential to transform trade finance, but what are some of the challenges and risks associated with implementing DLT in the real world? For example, how can we ensure that DLT-based trade finance platforms are secure and resistant to fraud? How can we ensure that all parties involved in a trade transaction are willing and able to use DLT-based platforms? What are the regulatory and legal implications of using DLT in trade finance, and how can we address these challenges? By exploring these questions and others, we can gain a more nuanced understanding of the potential benefits and drawbacks of DLT in trade finance, and work towards creating a more secure, efficient, and equitable trade finance ecosystem. What are some other challenges or risks associated with using DLT in trade finance, and how can we address them?

[Rasvya Banu]

When conducting a risk assessment in trade finance, it’s important to keep in mind the following factors:  The potential for a borrower to fail to repay a loan or other form of credit extended to them. This is usually determined by looking into the financial stability of both the buyer and the seller.  The risk that a trade finance counterparty won’t live up to their end of the deal is known as “counterparty risk.” This is typically determined by looking at the counterparty’s financial health and standing in the industry.  The risk of fraud is the danger posed by dishonesty on purpose. There is the potential for fraud on the part of the purchaser, the vendor, or the lender. Duplicate invoice financing, the use of falsified or fake documents, and collateral scams involving inventory are all examples of common scams in the trade finance industry. 

It is the possibility that the valuation of a trade finance transaction will decrease if the political, financial, or social situation in a country deteriorates. A common method for determining this is to look at the political and economic health of the countries involved.  Delivery problems (including loss, damage, or late arrival) are examples of logistical risks that could affect a transaction. The safety and effectiveness of the logistics chain is typically evaluated in this regard.  Threat that a trade finance deal will not adhere to applicable laws, regulations, or technical standards, also known as “compliance risk.” Anti-money-laundering (AML) and know-your-customer (KYC) regulations, sanctions laws, or other trade-related legislation are usually used to evaluate this.

[Rasvya Banu]

Quantitative and qualitative standards, as well as extra conditions that must be met throughout the security listing, must be met by companies that want to list their securities on Nasdaq. Businesses must also follow corporate governance guidelines. A firm can submit a preliminary listing eligibility evaluation before submitting a complete application. The Listing Qualifications team will look at a company’s public filings in an effort to establish whether it has met the numerical listing requirements and whether there are any regulatory concerns.

[Rasvya Banu]

There are different types of credit while financing foreign trade. They are cash credit and overdraft. Both will help exporters and importers apply for cash whenever needed as long the credit lines are open. In my personal opinion, they are just another kind of borrowing, and the difference is that it is short-term funding with interest being charged depending on the amount and utilization period.

[Rasvya Banu]

If you are an exporter, a vital consideration in international trade is the payment mode. Relying on upfront cash will eliminate the risk of non-payment. But it will also limit potential customers as buyers will have an issue with their cash flow. I have learnt that you analyze your customer and then offer five basic payment methods while making international trade. From an exporter’s point of view, the most to least secure payment modes include cash in advance, letter of credit, documentary draft or collection, open account and trade finance. However, an exporter’s safe payment method is always the least safe for an importer.

[Rasvya Banu]

There isn’t a big difference between a deferred payment and a usance letter of credit. Both of these terms mean that the payment is put off, which does give the transaction more time.

The main difference between the two letters is that one has a draft and the other does not.

In the usance letter, there is a draft that technically has nothing to do with the document or the transaction.

This draft isn’t in a deferred letter, but it doesn’t really matter to either party.

[Rasvya Banu]

To improve knowledge of different commodities and associated risk in export and trade financing, ICC launched the ICC Trade Register. In order to assess the long-held assertion that trade finance is a generally low-risk kind of financing, the effort uses data from 25 multinational institutions. It also gives arguments about how trade financing is handled within the Basel framework a crucial empirical foundation.

[Rasvya Banu]

One simple method for ensuring currency exchange rate, payments and delivery is for the importer’s banker to issue a transaction guarantee in the exporter’s favour, allowing the exporter to complete the delivery and accept cash under the collection. The importer’s bank provides a transaction assurance for the exporter, securing shipment, fee, and an exchange rate. To make sure participants understand the exchange rate applied at the point of transaction, the parties must sign an FX contract with the concerned banks.

• This reply was modified 2 years, 1 month ago by Carin G Hansen.
• This reply was modified 1 year, 10 months ago by Carin G Hansen.

[Rasvya Banu]

We all need to accept that trade finance may mitigate the risks of with international trade by resolving differing needs of parties  An exporter will indeed want that the importer compensate for an export order in advance to avert the risk that the importer accepts the shipment but denies to payments.  A prevalent remedy for this situation is for the importer’s lender to issue a LoC to the exporter’s bank, stating that payment will be made once the supplier provides the proof of shipment. 

[Rasvya Banu]

As a business person, you shouldn’t risk your enterprise by collaborating with just any financial company without researching their history. Failure to research a company’s history could endanger your own business and your distributors.

It might not be advantageous to work with a trade financial company that doesn’t make its corporate data accessible for you to view. To assist you stay one step ahead of the competition, you need a reputable trade finance source. A team of specialists with the necessary experience is what you need if you want the task done correctly the first time and with few, if any, problems along the way.

For both new and established enterprises, partnering with a global trade finance team with a wide list of recent successful agreements is a wise choice. These businesses have the expertise and insight to support your brand in overcoming any demand or supply challenges. They can guarantee that your clients receive the things they require in a timely and safe manner.

[Rasvya Banu]

Hi. As far as I’m aware, everything is now fast tracked, so it doesn’t take long. Within 15 minutes after speaking with the company’s factoring experts and explaining your circumstances and financial requirements, you will get an approval. You can be prepared for your new investment within three working days thanks to the company’s straightforward setup procedure. You will receive funding on the same day your bills are received after your initial funding

[Rasvya Banu]

Here is a list of some of the top companies now ruling the market. The important ones are: Santander Bank, Commerzbank, Standard Chartered Bank, ScotiaBank,Nordea Group. The following organisations also influence the financial markets: Citigroup Inc., Unicredit, Santander Bank, Arab Bank, Rand Merchant Bank, Societe Generale, BNP Paribas, Standard Chartered Bank, Nordea Group, Rabobank, Scotiabank, Commerzbank, China Construction Bank.

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