Between the
22nd and 24th May, 2016, I attended The 32nd Latin American Conference on
Foreign Trade (CLACE), held in Miami, organised every year by
The Latin American Banking Federation/Federación Latinoamericana de Bancos
(FELABAN) and on this ocassion in Miami with The Florida International Bankers
Association (FIBA).
The Conference
brought together 238 delegates from 27 countries from around the world,
representing around 115 banks and financial institutions. Some of the issues covered during the presentations and roundtables were:
‐ Impact of
De‐risking and De‐costing
Some of the
larger US banks are reassessing their correspondent bank relationships in view
of increased regulation and associated costs. Sometimes, the risk is so high
that some banks will not provide services to small banks in "risky" countries,
regardless of the credit standing of the bank. The CEO of Banco Azteca, Luis Niño
de Rivera, talked of “financial exclusion” of individual banks and some
countries. Even in the cases were relationships are maintained, banks are passing
on the full “regulatory” cost, making cross‐border transactions very onerous.
‐ Impact of
Basel‐3
Concerns
that new definition of risk weighting could mean risk weighting for trade
finance transactions going from 20% to over 100%.
In this
respect, David Bischof, Policy Manager, Banking Commission, International
Chamber of Commerce (ICC) introduced the ICC Trade Register, which draws
attention to the low credit‐related default and loss experience in trade
finance transactions.
‐
Electronic platforms for trade finance
Presentation
of different platforms for trade finance.
‐ Paperless
trade finance
Presentation
of progress in achieving paperless trade finance.
‐ Money
laundering and trade finance
The use of
Geographical Targeting Orders (GTOs) in the USA and how they affect the
business and costs of banks. Law enforcement agencies suggest that banks should
not only investigate their customers but also their customer´s customers. In
effect going from KYC to KYCC.
A very interesting event and an ocassion to catch up with friends and colleagues.
