Compliance FULL

Compliance in International Business: Overview

• Global Transaction Banking and Trade Finance: Christian Cazenove leads trade finance oversight at Société Générale, emphasizing the importance of compliance in facilitating global trade.

Key Roles and Expertise

• Christian CAZENOVE: MD and Group Head of Trade Finance with an extensive background in compliance, trade digital, and risk management, involved in ICC and audit strategies for trade finance operations.

• Courses Offered: Courses on principles of finance, compliance in international business, and international business development financing.

Main Goals and Course Content

• Aim of the Course: Address the risks in international trade that may facilitate money laundering and terrorism financing, focusing on compliance measures and techniques used in trade finance to mitigate these risks.

• Learning Outcomes:

  • Broad understanding of compliance risks related to foreign contracts.

  • Awareness of global threats and compliance regulatory frameworks, particularly from anti-money laundering (AML) and combating terrorism financing (CTF) perspectives.

Compliance in International Business

• Definition of Compliance: Adherence to banking regulations and market ethics to prevent money laundering, terrorist financing, fraud, and corruption. Compliance ensures that banks operate within defined regulatory frameworks.

Training and Education Goals

• Understand Trade Finance (TF) flows and products.

• Identify compliance risks in international business, enabling proactive risk management.

Compliance Risks

• Banks must define a strategy to deal with compliance risks to avoid legal and reputational damage. Common strategies include risk assessments, KYC processes, and understanding the nature of transactions.

The Impact of Non-Compliance

• Consequences of Non-Compliance: May lead to significant financial penalties, reputation damage, and legal actions against banks, highlighting the need for effective compliance programs, especially in high-risk trade finance.

Regulatory Environment and Sanctions

• Types of Sanctions: Regulatory measures can be unilateral (e.g., US sanctions) or multilateral (UN sanctions). Sanctions may include trade restrictions, asset freezes, and bans on certain transactions.

Case Studies and Real-World Applications

• Practical Examples: Illustrate compliance in TF with case analyses from sectors vulnerable to money laundering, demonstrating adherence to regulations through transparent practices.

• Discussions on compliance with regional laws and practices to cater to a diverse clientele while mitigating exposure to illicit financial activities.

Conclusion and Future Directions

• Evolving Compliance Landscape: As compliance requirements increase, there is a greater need for banks to adopt vigilant, strategic approaches to manage the complexities of international trade financing safely.

• Emphasis on continuous improvement of compliance strategies, adapting to changes in regulations and geopolitical landscapes.