ICC Introduces eUCP Directory Project

The ICC Banking Commission has announced its intention to compile an eUCP Directory in order to bring attention to banks’ capacities to handle eUCP letters of credit.

Inspired by the Banking Commission’s Commercialisation of eRules group, the project will rely on banks voluntarily providing information on their capacities to issue and advise eUCP LCs and shine a spotlight on their abilities to use eUCP in hopes that corporates will ask about the eUCP and eventually request issuance according to eUCP. Originally released in 2002, the eUCP supplement was most recently updated in 2019. At present, SWIFT estimates that usage of the eUCP rules in MT700 is less than 1%.

Joined in a presentation on 21 March 2023 to introduce the idea by Tomasch Kubiak of ICC and Eleonore Treu of ICC Austria, Jon Boran of Lloyds Banking noted that a key factor curtailing potential eUCP use is a lack of visibility. In many cases, Boran explained that banks do not want to risk advising banks being unwilling to handle eUCP credits. Having an eUCP Directory would reduce unnecessary bank to bank negotiations ahead of issuing a desired eUCP LC.

ICC National Committees are urged to approach their member banks about joining the eUCP Directory by 1 May 2023, although member banks joining thereafter will be added when the Directory is updated on a quarterly basis. Currently, only banks who are ICC members can be included. For entry into the registry, ICC requires: Bank name & SWIFT address; Ability to issue eUCP credits (yes or no); Ability to advise/confirm eUCP credits (yes or no); and Contact name and details for additional information.

Banks further have the option of declaring parameters under which they handle eUCP credits. Suggested items to add could include: Any platform participation; Acceptable document formats; Acceptable or unacceptable clauses/credit requirements; Jurisdictional requirements; Regulatory requirements; and any other details or requirements.