New message on Dear CEO letter

Following our recent messages on the “Dear CEO” letter on financial crime risks in trade finance sent by the UK Regulators (see here for a copy of their letter and here and here for our two previous communications) we have now heard back from them on our additional question regarding their guidance on the use of credit insurance. In another important clarification, the UK Regulators have stated that their recommendation that parties relying on credit insurance should seek to be added as a loss payee and obtain an acknowledgment from the insurer that they are in compliance with the terms of the insurance policy, does not apply to receivables finance transactions where the obligor or end-buyer is unaware of the existence of the receivables purchaser. Whilst this clarification does not deal directly with the issue of the feasibility of seeking such a confirmation on other circumstances, it is nevertheless a useful clarification.

For more information, the attached news article here from Thomson Reuters provides some additional commentary and background with contributions from ITFA.

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