TR13/3 - Banks’ control of financial crime risks in trade finance

We undertake thematic projects to assess current and future risks in relation to a particular issue or product. This may be across a number of firms, within a specific part of the sector, or at market level.

This report describes how banks in the UK control money laundering, terrorist financing and sanctions risks (collectively ‘financial crime risks’) in trade finance business and sets out the findings from our recent thematic review.

Why are we publishing this report?

Trade finance is a key component in maintaining a competitive and productive economy.  

London’s position as a major financial centre could be severely affected if banks engaging in trade finance activity do not have appropriate systems and controls to prevent money laundering, terrorist financing and sanctions breaches from taking place.

Thematic review

What are the next steps?

We expect banks and other firms engaged in trade finance business to consider our findings and examples of good and poor practice and use them to develop more effective policies and controls where necessary.