Description:

Can be used to finance activity-based prohibitions in Iran/DPRK.

Appears in:

• Acquisition Leveraged Finance
• Borrowing Base Facility
• Bridge Loan
• Certificate of Deposit (Broker Acting as Principal)
• Certificate of Deposit (Broker Acting on Behalf of Client)
• Certificate of Deposit (Direct Interaction with Clients)
• Commodity Option
• Commodity Swap
• Credit Facility
• Currency Swap
• Deposit
• Deposit (Direct with Client)
• Deposit (via Broker)
• Discounting of Receivables With or Without Recourse
• Documentary Collections (Export)
• Documentary Collections (Import)
• Equity Option
• Exotic FX Option
• Exotic Interest Rate Option
• FX Option
• FX Prime Brokerage (Continuous Linked Settlement)
• FX Prime Brokerage (Non-Continuous Linked Settlement)
• FX Spot
• Import Guarantee (Standby Letter of Credit)
• Index Option
• Letter of Credit and Guarantee Syndication
• Leveraged Loan
• Liquidity Support Facility
• Loan Syndication
• Multi-Product Facility
• Option
• Option On Futures
• Overdraft Facility
• Performance Bond
• Revolving Credit Facility (Bilateral Agreement)
• Revolving Credit Facility (Syndicated)
• Standby Facility
• Term Loan

Addressed by:

• Approval to Make 3rd Party Payment: Compliance approval is required for 3rd party payment and monitoring.
• Documentary Evidence to Identity Parties and Details of Transaction: Agreement supported by underlying documentation (i.e., bills of lading, invoices, shipping documents, warehouse receipts, and warrants) that contains details of all parties to the transaction, currency, value, all countries involved, and the purpose of the transaction.
• Documentary Evidence to Support Conditions of Agreement Met: Agreement supported by underlying documentation (bills of lading, invoices, shipping documents, warehouse receipts, and warrants) containing details of all parties involved in the transaction, currency, value, all countries involved, the purpose of the transaction, and allowing payment only when all conditions outlined in the terms of the instrument have been met.
• Early Termination Clause: Legally binding agreements relevant to the service include an early termination clause for high-risk clients or sanctions breaches.
• Event Triggered Review: Ongoing monitoring of a business relationship that is triggered by a specific event and includes a view of customer information, risk profile and transactions. Events can include adverse news, a change in status, a change in address, a request for a higher-risk product or service, a change in beneficial ownership or control, a type of business, a move to a higher-risk country, or unusual activity.
• Know Your Business (KYB): Includes taking steps to gain an understanding of a customer's business activities, including the nature of the business to be taken with a bank and the anticipated volume and value of the business.
• Limits on 3rd Party Payments: Restricted capacity to make 3rd party payments.
• Originator and Beneficiary Information: Require that originator and beneficiary information be included in the payment.
• Sanctions Payment Filtering: Screens financial transactions to identify potential matches against international economic and financial sanctions.
• SWIFT Confirmation: Requires confirmation via SWIFT that payment will be used solely for agreed purposes pre-release and post-payment
• Traded on Regulated Exchange: Traded on a regulated exchange in a low-risk jurisdiction.
• Transactional Due Diligence (TDD): Conducts a detailed examination of specific transactions identified as being higher risk.
• Transparent Flow of Funds: Maintains a transparent flow of funds.