Trade Finance Compliance

Trade Finance Compliance refers to the application of regulatory controls, policies, and risk management practices to trade-related transactions such as letters of credit, guarantees, and documentary collections. It ensures compliance with AML, CFT, sanctions, export controls, and trade-based money laundering regulations. Trade finance compliance is important because trade transactions are complex and vulnerable to financial crime. Effective controls help banks identify suspicious activity, prevent sanctions breaches, and protect against regulatory penalties. Strong trade finance compliance frameworks support safe trade facilitation, safeguard institutional reputation, and ensure alignment with global regulatory and international trade standards.