The ICC Banking Commission returned to Dubai, UAE, for its 2025 Annual Meeting on 17 February. The one-day event was organized by ICC UAE and hosted by Dubai Chambers. In addition to those participating in-person, others attended virtually.
In the fifth instalment of his DCW article series on major contemporary issues surrounding documentary credit practice, ICC Banking Commission Senior Technical Advisor Dave Meynell offers his thoughts on the highly-charged question: Is it time for UCP to be revised?
This month, we sort through some of the big questions shaping LC practice today. Is it time to rewrite UCP 600? Dave Meynell makes the case. Sanctions clauses: are they enforceable or a minefield? Robert Parson unpacks what the courts are saying. What counts as a proper certification under LC rules? Carter Klein breaks it down and warns why sloppy drafting can cost you.
In Dubai, the ICC Banking Commission tackled LC digitalization, sanctions headaches, and the age-old pre-shipment finance puzzle. DCW has the full report.
Plus, why ICC Opinions are scant, what new export controls mean for banks, and a court ruling on LC documents every banker should know. Don't miss the LC issuance statistics for US banks in 4Q 2024.
Here's everything that's new:
🗓️ But first: Singapore Conferences
IIBLP conferences return to Singapore on 19-21 May, continuing the decades-long tradition of bringing together bankers, lawyers, lawmakers & corporates for unique training and networking experiences. DCW will be on the scene to be part of the active discussions at the forefront of our industry. We hope to see you there.
Is it finally time to revise UCP 600? With ISBP 821 already under revision, ICC Banking Commission Senior Technical Advisor Dave Meynell explores whether the long-standing UCP 600 needs an update to reflect today’s trade finance realities, including digitalization, missing rules, and persistent discrepancies. In this detailed analysis, Meynell weighs the pros and cons of a revision, offering insights on what changes could (or should) be made, and whether the costs of revision outweigh the benefits.
Sanctions clauses in LCs: enforceable or not? Robert Parson examines recent key court rulings that are reshaping how sanctions clauses are viewed in LC practice. From Singapore’s Kuvera case to England’s Celestial Aviation dispute, courts are signaling that while sanctions clauses can be enforced, banks must meet high standards of investigation and due diligence. As sanctions risk grows, understanding where the lines are drawn is more crucial than ever.
What counts as a complying certification under LC rules? In In re Spiegel, courts weighed in on whether a beneficiary’s certification of a court order met LC requirements — raising deeper questions about strict compliance, UCP vs. ISP certification standards, and how to draft reimbursement agreements to avoid wrongful honor claims. Carter Klein breaks down the case, its lessons for standby LC practice, and why clearer drafting may be needed to avoid costly disputes.
What’s next for trade finance? The February 2025 ICC Banking Commission Annual Meeting in Dubai tackled pressing issues shaping the future of trade finance, from the challenge of digitalizing LCs and bills of lading to navigating sanctions clauses and pre-shipment financing. Penned by DCW Executive Editor Christopher Byrnes, this in-depth conference report captures key insights on global trade trends, digitization, regulatory hurdles, and ICC initiatives, offering a clear view of where the industry is heading and the obstacles it still faces.
LC issuance by the numbers. This latest quarterly snapshot delivers comprehensive LC issuance statistics for 4Q 2024 from the top 600 US-based banks. The data tracks net financial and performance standbys, commercial LCs, and total LC issuance — providing a critical view into current market activity and trends.
In Iberdrola v. Oaktree, a New York court ruled that a “non-recourse” clause blocked a contractor’s claims against the company behind an insolvent LC beneficiary, even after the contractor won a major arbitration award. However, the court left open the possibility to revise and refile fraud claims.
đź’ˇ The DCW eBook library is growing. With three titles currently, we are working to expand our collection to provide more value. These eBooks are easy to navigate, searchable, and allow for private notes. Do you have a suggestion for additional types of books you'd like to see? Reply to this message to let us know.
Chris Sandler is the COO of the Institute of International Banking Law & Practice, the organization which produces DCW. Reach Chris at sandler@iiblp.org
After an adverse judgment levied civil sanctions against Marshall Spiegel (Debtor) for vexatious and abusive litigation practices, Debtor/Applicant applied
