flow explains how the new update to the Wolfsberg Principles has provided greater clarity on client due diligence and risk-based checks in open account trade and bank to bank trade loans
Further to Deutsche Bank’s report (Wider reach) from Christian Hausherr in August 2018 on how the joint ICC/BAFT/Wolfsberg Trade Finance Principles Drafting Group had been redrafting and updating them in alignment with industry needs, a new release was announced on 27 March 2019 covering two new appendices on FI Trade Loans and Open Account trade.
Hausherr, European Product Head of Supply Chain Finance (SCF) has been part of the Wolfsberg Drafting Group for the past two years holding the SCF baton working alongside other SCF expertise as well as those covering compliance and anti-financial crime. Three years after the publication of the ICC Definitions for Supply Chain Finance, he sees this as “another important milestone that paves the road to foster further growth of SCF business in the market”.
“I am proud and delighted to see the latest edition of the Trade Finance Principles being publicly released by the Wolfsberg Group,” says Hausherr. He continues, “Over the past two years, I had the honour of ‘holding the pen’ for supply chain finance and working together with a great team of international subject matter experts on compliance, anti-financial crime and supply chain finance.”
The Wolfsberg Group is an association of 13 global banks which aims to develop frameworks and guidance for the management of financial crime risks, particularly with respect to know your customer (KYC), anti-money laundering (AML) and counter terrorist financing policies.