International Chamber of Commerce (ICC) – Bangladesh hosted a day-long Workshop on Trade Finance Legal Challenges and International Sanctions Regime & Requirements jointly with Moody's and ICC United Arab Emirates (UAE) in Dhaka on Saturday (23 November) at Renaissance Hotel, Gulshan Avenue, Dhaka.
With the increase in international trade of Bangladesh, efficient cross-border trade will have notable implications for the country’s LDC graduation process.
Therefore, understanding the foreign business partners is crucial.
Mahbubur Rahman, president, ICC Bangladesh made the remarks attending as a chief guest of a concluding session and certificate giving ceremony of a day-long workshop on “Trade Finance Legal Challenges and International Sanctions Regime & Requirements.”
Mohamed Daoud, Director and Industry Practice Lead for Moody's Financial Crime Compliance across the Middle East and India and Vincent O’Brien, Director, ICC UAE were present at the concluding session moderated by the ICC Bangladesh Secretary General Ataur Rahman.
Addressing the participants ICCB President Mahbubur Rahman said the financing of international trade transactions plays a crucial role in facilitating global commerce.
However, it operates within a complex legal framework shaped by regulatory requirements, including sanctions, presenting significant challenges for financial institutions and businesses dealing with international trade.
ICCB President also said therefore, financial institutions and businesses must navigate a labyrinth of sanctions imposed by various jurisdictions.
These sanctions can target specific countries, entities, or individuals, and often differ between regions, leading to complexities in ensuring compliance.
Emphasising on the role of lending organisations, Mahbubur Rahman said Banks are obligated to conduct thorough due diligence to prevent money laundering and terrorist financing.
This involves verifying the identities of clients and understanding the nature of their business activities, which can be resource-intensive and legally complex.
ICCB president also highlighted the recent trades in the global economic and political arena. He said the evolving geopolitical landscape that introduced new sanctions has increased the compliance burden on banks and businesses engaged in international trade.
To navigate these challenges, financial institutions and businesses should establish comprehensive policies, follow regulatory requirements and educate employees on the latest developments in sanctions laws and compliance obligations, he said.
With the increase in international trade of Bangladesh, efficient cross-border trade will have notable implications for the country’s LDC graduation process.
Therefore, understanding the foreign business partners is crucial. International Trade Finance landscape is also facing increasing risks due to geopolitical tensions and complex regulations, such as the new US & Allied sanctions regimes targeting specific jurisdictions.
To effectively manage these risks and reduce the risk inherent to Trade-Based Money Laundering (TBML), a connected risk and compliance approach to cross-border trading and finance is essential.
Some106 participants from different government agencies including the Financial Institutions Division under the Ministry of Finance, banks, financial institutions and international agencies took part in the day-long event.
There were four sessions on different topics including modern trade finance, risk management, international sanctions, and TBML.
A similar workshop was also held in Chattogram on Sunday (24 November).
