Risks of Email Presentation under LCs Addressed in ICC Briefing Paper

The ICC Banking Commission’s Commercialisation Working Group released on 13 June 2023 an educational briefing paper about the risks linked to email presentation and file attachments under documentary credits. This Digital Commercialisation Briefing Paper No. 1 is freely available in the ICC Digital Library.

Throughout the Covid pandemic, the trade finance industry developed and relied upon innovative methods for bankers and businesspersons working remotely to continue managing and processing credit transactions. These methods included adoption of procedures allowing for presentation of LC-required documents via email. Thought at the time to be temporary measures utilized until a return to “business as usual”, the industry has experienced an increase in the number LCs allowing for email presentations.

The Briefing Paper urges organisations to review their practices and evaluate whether they should adopt a more secure and encrypted method for processing electronic records. The paper goes on to list potential risks, potential technical challenges, and potential operational challenges associated with email presentations.

In its concluding remarks, the paper strongly recommends against allowing for presentation of documents under documentary credits via email, but offers points to consider if such practice is permitted and advocates for credits to be issued subject to the current version of eUCP.

The paper adds that any time presentation of emailed documents and associated file attachments is permitted, “it is extremely advisable that the terms and conditions of that solution are clearly documented and agreed between all relevant parties to avoid any potential dispute(s) at a later date.”