News

Automated Document Examination and Financial Crime Risks managed by AI

28/02/2024

For almost two years now I have been acting as a consultant to a company called Complidata who are based in Belgium. Complidata provide two artificial intelligence driven solutions to banks ands corporates (1) Automated Document Examination (TradeSpeed) and (2) Financial Crime Risk Reporting (FCRR). My task, for TradeSpeed, has been to identify and document all the checks that are necessary to examine a set of documents under a letter of credit across all types and industries. This encompasses checks relating to terms and conditions incorporated into a letter of credit including fields 45A, 46A and 47A, the applicable rules in UCP 600 and the applicable practices outlined in ISBP 821 for each document type. For FCRR to identify the checks needed for sanction, red flags, TBML, and vessel monitoring among others.

In addition to establishing the examination checks for letters of credit, to develop discrepancy wording to identify the reason why TradeSpeed has identified a discrepancy in a document or the presentation itself. Demo's have been provided to numerous banks with advancement to proof of concept and implementation.

The following link, to the Complidata February newsletter, provides some more details. If your bank or company has any interest in this exciting solution please let me know at gary@collyerconsulting.com   

https://cdn.mc-weblink.sg-mktg.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__RVD1K3lOVaG

 


Back to recent news

Recent News

26/11/2024

The latest newsletter is now available in the members trade information section under the category of 'Newsletters'...more

ICC release Technical Advisory Briefing No. 11 - Definition of Trade Finance 19/09/2024

Recognising that there is no global standard for the defining Trade Finance, this Briefing document provides a suggested text and has been recommended for use by the ICC Banking Commisison Steering Committee...more

Latest Question

We, as the issuing bank, requested the below document, under field 46A. “Insurance policy/certificate for 10.00 percent above CIF value payable to the order of Sampath bank PLC, covering institute cargo clauses (a), institute war clauses (cargo), institute strike clauses (cargo), transshipment risks marked premium paid claims payable in Colombo irrespective of percentage.” Insurance certificate is presented containing below wording on the face side of the document. “The settlement of loss and damage will be effected, unless otherwise provided, through the intermediary of Marsh SA/NV to whom all documents are to be forwarded for this purpose, and will collect the indemnity under deduction of a commission of one percent” Also, it indicates the LC conditions as a mirror image as follows under the heading of "letter of credit conditions" whereas insurance conditions are incorporated separately in the certificate: "covering institute cargo clauses (A), institute war clauses (cargo), institute strike clauses (cargo), transshipment risks marked premium paid claims payable in Colombo irrespective of percentage" Having considered the above clauses, we have quoted below discrepancies. 1) Insurance policy indicates a deductible of 1 pct instead of irrespective of percentage. 2) Insurance not marked premium paid Beneficiary’s bank disagrees with our discrepancy and raised below argument: “Insurance policy/certificate does not indicate a deductible of 1 pct irrespective of percentage on the face of the document and banks will not examine terms and condition in insurance document as per ISBP paragraph K22 and marked as premium paid under the LC conditions. Considering above, may we have your opinion on the discrepancy quoted by us and the counter argument raised by the beneficiary’s bank.