The ICC Banking Commission conducted its final meeting of 2024 virtually via Teams on 20-21 November. Four separate portions of the event open to Banking Commission members and ICC National Committee representatives took place.
US Treasury’s Financial Crimes Enforcement Network (FinCEN) and the US Department of Commerce’s Bureau of Industry and Security (BIS) released on 28 June 2022 a joint statement directed at financial institutions, advising them to be vigilant of efforts by individuals or entities to skirt BIS export controls implemented due to Russian aggression against Ukraine.
The 10-page FinCEN & BIS Joint Alert (FIN-2022-Alert003) first provides an overview of recent BIS actions taken in response to the invasion of Ukraine to put into place stringent export controls to target Russia’s defense, aerospace, and maritime sectors as well as its energy production sector and luxury goods market. The Alert also identifies commodities of special concern and outlines several transactional and behavioral red flag indicators of export control evasion.
Recognizing that financial institutions may have visibility into aspects of export-related financial activity, including their providing or handling of payments supported by LCs, the Alert addresses applying a risk-based approach to trade finance. The Alert states:
“Financial institutions directly involved in providing trade finance for exporters also may have access to information relevant to identifying potentially suspicious activity. This may include their customers’ end-use certificates, export documents, or other more extensive documentation associated with letters of credit-based trade financing.”
The Alert concludes by reminding financial institutions of their Bank Secrecy Act (BSA) reporting obligations and details how suspected export control evasion activity may also be reported to BIS enforcement authorities.
