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India working on blockchain-based system to eliminate falsified L/Cs and other trade documents

The Reserve Bank of India (RBI) is working with several banks and technology firms on a blockchain-based pilot project to tackle trade-based financial crime, with an emphasis on identifying falsified documents such as letters of credit (L/Cs) according to a report in the Economic Times.

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Banca Generali obtains court order to see L/Cs and other documents underlying securitisations

A private Italian bank has succeeded in obtaining a London court order that will allow it to see documents, including letters of credit (L/Cs), underlying EUR 344 million (US$362 million) of securitisations it sold to its clients.

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Investor-owned local bank in Vermont set to open, L/Cs included in commercial offerings

A proposed new, investor-owned commercial bank in the US state of Vermont has moved a step closer to opening by raising a total of US$33 million in start-up capital.

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Green financing framework to provide L/Cs and guarantees for Spanish solar developer

Independent renewable power producer Opdenergy Holding has secured EUR 50 million (US$52.6 million) in debt financing to back the development of solar projects in the US, Spain and elsewhere.

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TBML relies on lack of L/C understanding says LexisNexis

Trade-based money laundering (TBML) relies on lack understanding by financial institutions about letter of credit (L/C) documents or how inspection reports are produced according to the latest LexisNexis True Cost of Compliance Study - Asia-Pacific Edition.

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Blockchain fintech we.trade files for insolvency

Blockchain fintech we.trade, which marketed a bank payment undertaking (BPU) product as an alternative to a letter of credit (L/C), is winding up its operations and has proposed PwC as its liquidator according to the Irish Independent daily newspaper.

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ICIEC signs L/C insurance agreements with Saudi Eximbank and UAE-headquartered Tabarak

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Saudi Export Import Bank (Saudi Eximbank) have signed reinsurance agreements to help facilitate trade finance flows into and out of the kingdom. The agreements see ICIEC provide reinsurance to Saudi Eximbank's cover of confirmed letters of credit (L/Cs).

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Pakistan joins list of South Asian countries experiencing L/C difficulties

Pakistan has joined the apparently increasing number of South Asian countries tasked with coping with difficult economic conditions where letters of credit (L/Cs) are becoming harder to come by.

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Building material suppliers in Qatar should consider L/Cs and bank guarantees to counter increased non-payment risks

Building material suppliers in Qatar should consider using letters of credit (L/Cs) or bank guarantees amongst other options to guarantee payment according to lawyers at global law firm Clyde & Co.

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India mulls revision to export subsidies to increase L/C availability

India's government is planning to pass on the subsidies it currently provides to Indian micro-, small- and medium-sized enterprises (MSMEs) exporting to developing countries to those countries.

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Manhattan man pleads guilty to US$3 million fraud scheme featuring fictional L/Cs

A Manhattan man has pleaded guilty to conspiracy to commit wire fraud in connection with a scheme to defraud victims by telling them that they could obtain large loans or letters of credit (L/Cs) if they provided up-front investments, which he sometimes described as "seed capital", as collateral.

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Indian bankers and exporters involved in fraudulent L/Cs for wheat exports face legal action

India's Directorate General of Foreign Trade (DGFT) says some exporters are illegally obtaining registration certificates for wheat exports under letter of credit (L/C) terms using "improper documents" in attempts to bypass new legislation.

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Bernie Ecclestone's L/C guarantee features in one of Britain's biggest money laundering prosecutions

Former Formula One chief Bernie Ecclestone was asked by his ex-son-in-law James Stunt to provide a US$10 million guarantee for a letter of credit (L/C) to back a gold bullion business venture "that made no commercial sense", a court has heard.

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Surecomp launches Rivo to connect digital trade finance systems

Digital trade finance solutions provider Surecomp has launched a new collaborative trade finance platform called Rivo. It aims to overcome challenges of interoperability amongst digital platforms and bring together an ecosystem of corporates, financial institutions and fintechs.

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Contour's L/C solution to connect with TradeLens' eBL

Digital trade finance network Contour has reached an agreement to connect its letter of credit (L/C) solution with the TradeLens blockchain-based supply chain platform that enables the secure and transparent transfer of electronic bills of lading (eBLs).

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Partial U-turn on Egypt's new L/C rules

Raw materials and factors of production imported from abroad have been exempted by presidential order from new rules that require most Egyptian importers to use letters of credit (L/Cs), just weeks after the Central Bank of Egypt (CBE) introduced the rules.

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L/Cs increasingly restricted in South Asia's smaller economies

Letters of credit (L/Cs) are becoming harder to come by in South Asia's smaller economies as they seek to cope with difficult economic conditions.

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UBI launches 'Trade nxt' digital platform with L/C functionality for Indian traders

One of India's largest government-owned banks has launched an online platform for providing comprehensive cross-border trade finance services to Indian exporters and importers.

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India's ban on wheat exports excepts shipments with L/Cs already issued

India has banned exports of wheat due to soaring global prices largely precipitated by lack of supply from warring Ukraine and Russia, which together normally account for nearly one-third of global wheat exports.

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Aeroflot board statement on new capital issue and L/C debt restructuring

As part of measures aimed at improving the financial stability of beleaguered Russian airline Aeroflot and its debt restructuring under letters of credit (L/Cs), its board of directors has

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Former China Development Bank executive who violated L/C and guarantee rules faces bribery and corruption charges

The former deputy head of China Development Bank (CDB) has been charged for taking bribes, issuing illegal loans and concealing offshore deposits, the official Xinhua news agency has said.

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Another aircraft lessor claims against Unicredit to enforce L/Cs related to aircraft seized by Moscow

Two Irish units of aircraft lessor Aircastle have launched a near US$25 million claim against Unicredit in London to enforce letters of credit (L/Cs) related to aircraft seized by the Russian government, the Irish Independent newspaper has reported.

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GSBN completes proofs-of-concepts for blockchain-enabled L/Cs and open account transactions

The Trade Finance Advisory Group at Global Shipping Business Network (GSBN) has developed its first blockchain-enabled proofs-of-concepts for two trade finance products, letters of credit (L/Cs) and open account.

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Innovative renewable financing bundles L/C and equipment financing

Origis Energy, a US-based renewable energy platform, has announced the close of a US$375 million credit facility for its solar and energy storage development project pipeline.

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Sri Lankan importers must buy on L/C, D/P or D/A terms as central bank bans open account import transactions

Importers in Sri Lanka will only be allowed to finance purchases on letter of credit (L/C), documents against payment (D/P) or documents against acceptance (D/A) terms according to the island state's central bank governor, Nandalal Weerasing.

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Additional L/C clauses advised for banks financing East Asian oil and petroleum trades

Financial institutions should write additional clauses in letters of credit (L/Cs) issued for oil and petroleum transactions in areas of East Asia to help prevent North Korea taking delivery of shipments in contravention of an embargo meant to limit the country's imports according to the UN Panel of Experts monitoring global compliance with sanctions imposed on Pyongyang.

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SBLC-backed issue for Sino-Ocean may set precedent for other Chinese homebuilders

Chinese real estate developer Sino-Ocean has raised US$200 million from a three-year bond backed by a standby letter of credit (SBLC).

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Afreximbank reports significant growth in L/C and guarantee business and income in 2021 results

Significant growth in letters of credit (L/Cs) and guarantees helped the African Export-Import Bank (Afreximbank) group demonstrate strong and resilient growth last year, notwithstanding the negative impacts of the Covid pandemic, according to the bank's 2021 annual consolidated financial statements.

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Aercap pursues legal claim against Unicredit for rejecting L/C payment on failed Russian leases

Aercap is pursuing a US$45.8 million claim against Unicredit after the Italian bank rejected the world's biggest aircraft lessor's payment requests in respect of certain letters of credit (L/Cs) related to failed lease agreements with lessees in Russia.

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L/C examination reveals phantom shipment scam

An examination of letters of credit (L/Cs) in Bangladesh has revealed a multi-million dollar export incentive scam involving phantom shipments, in which agricultural and food products appeared to have been sold abroad, but no goods actually left the country.

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Sri Lanka finds ways to import oil without L/Cs

Sri Lanka has been importing oil for several months without letters of credit (L/Cs) after banks stopped providing them last year according to the chairman of state-run Ceylon Petroleum Corporation (CPC).

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Domestic and foreign banks withdraw L/C support for major Russian-backed Indian refinery

India's HDFC Bank and at least four foreign banks have stopped opening and confirming letters of credit (L/Cs) for oil imports to Nayara Energy, the Russian-backed owner-operator of India's second largest single-site refinery, Reuters has reported.

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US EXIM approves support for Iraqi L/Cs, moves Russia off-cover

The US Export-Import Bank (EXIM) board of directors has approved a US$300 million package of support for letters of credit (L/Cs) issued by Iraq.

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Nepal orders banks not to issue L/Cs for vehicles and non-essentials

Nepal's central bank has ordered the country's commercial banks not to issue new letters of credit (L/Cs) for the importation of vehicles and other non-essential goods as part of its efforts to preserve dwindling foreign exchange reserves.

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Pakistan's central bank eases rules on L/Cs for refineries

Pakistan's central bank has responded to pressure from operators of the country's refineries to increase credit limits required to open letters of credit (L/Cs).

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AfDB approves first ever transaction guarantee facility for L/C non-payment risks

The African Development Bank (AfDB) has approved the first ever facility under its new transaction guarantee instrument, which was formally launched in July 2021.

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European banks increasing L/C support for commodity trades says Fitch

European banks appear to be increasing lending, including via letter of credit (L/C) support, to commodity trading firms which are facing unprecedented liquidity needs due to extreme price volatility, Fitch Ratings says.

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Conflict in Ukraine restricting L/C flows but Indian banks opening for business

Letter of credit (L/C) flows are facing increasing restrictions as a result of international sanctions imposed on Russia as well as self-imposed measures taken by banks for fear that future sanctions could be enacted without warning.

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India and China mull own currency options for Russian and Saudi oil to overcome L/C obstacles

India and China are both reportedly in discussions about paying in their own currency for oil now that sanctions imposed on Moscow, the bar on several Russian banks from the SWIFT messaging platform and self-imposed restrictions introduced by many banks have stemmed conventional flows of US dollar letter of credit (L/C) transactions (DC World News, 4 March 2022).

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Ecuador's state oil company finds alternative to sanctioned L/C deals for Russian fuel

Ecuador's state oil company has lifted a force majeure it declared over two Russia-origin cargoes of diesel after it could not obtain a letter of credit (L/C) from Banco Central del Ecuador (Central Bank of Ecuador - BCE).

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