INTERNATIONAL TRADE FINANCE

Transcription

1 2013 Training Programmes INTERNATIONAL TRADE FINANCE

2 1 I International Trade Finance Trade Finance Risk Management Principles, Practices, Credit Facilities and Legal Cases 16 PDUs Sep 2013 (3 days) awarded by ifs DATE/DURATION VENUE Kuala Lumpur PREREQUISITE Basic knowledge of Trade Finance Risk Management. SYNOPSIS OF THE PROGRAMME Banks are confronted with credit risk, operational risk, legal risk, market risk and liquidity risk, among others, the moment they grant credit facilities and loans, including trade finance facilities to borrowers. Basel II and now III have a critical impact on the cost of trade finance and of issuing confirmed letters of credit. Under Trade Finance Risk Management Model, the trade finance operational risk can be systematically mitigated with trained operations staff, officers, and managers. The benefits are that banks will earn interest and fee-based income on trade finance products to help banks improve ROE for shareholders. How will banks manage trade finance risks under Risk Management Framework? Trade Finance Risk Management Framework provides the answer to bank managers who want to add value to managing trade finance risk in structuring trade finance facilities and in operations. This intermediate Trade Finance Risk Management programme is specially designed to help banks in offering trade finance facilities under credit analysis while also focusing on operational and possible legal issues that may affect the banks bottom-line performance and operational reputation supported by strict compliance and trade finance policy. LEARNING LEVEL Intermediate TARGET AUDIENCE Trade Finance Officers and Managers Corporate Banking Relationship Managers or Credit & Marketing Managers Commercial Banking Relationship Managers or Credit & Marketing Managers Private Bankers Branch Managers Credit Audit Managers Credit Risk and Risk Management Managers Compliance Officers and Managers LEARNING OUTCOMES Upon completion of the programme, participants will be able to: Apply the Trade Finance Risk Management Framework in managing trade finance risks at macro and micro level Apply the knowledge of risk management associated with documentary collections and relevant topics Apply the knowledge of risk management associated with documentary credits and relevant topics Apply the techniques of detecting and preventing possible documentary and maritime frauds

3 International Trade Finance I 2 COURSE OUTLINE Day 1: Managing Trade Finance Risks Under Documentary Collections Introduction Basel II and now III on significant impact on the trade finance cost and issuing confirmed letters of credit Basel III impact on trade finance Expected trade trend moving forward Operational risk definition, categories and drivers Trade Finance Risk Management Framework macro and micro level of risks Bank s flowchart of approving process and frequent trade requests and possible improvements without the increase of risks Identifying international trade and trade finance risks under various methods of payment Workshop 1 What Are the Inherent Risks in International Trade & How to Mitigate Them? In your opinion, how can you mitigate them? Commercial documents, title documents, insurance documents and instruments, and their implications Risks associated with documentary collections Legal risks on documentary collections and financing Credit facility structure and considerations under a credit paper the duty of credit analysts and relationship managers Legal Case Study 1 Risk on Documentary Collections Pertaining to Pre-Shipment Financing Day 2: Managing Trade Finance Risks Under Documentary Credits Introduction Risks associated with documentary credits Legal risks on documentary credits Risks relating to parties in documentary credits Risks in different types of documentary credits and protection of risks Documentary and terms compliance under documentary credits UCP 600 Workshop 2 Discuss on Consequences of Non-Compliance of a Documentary Credit Fraud risks and maritime frauds and detecting of documentary credit frauds Appreciate operational risks, legal risk, technology risk, etc. Credit facility structure and considerations under a credit paper the duty of credit analysts and relationship managers Legal Case Study 2 Risks on Documentary Credit Pertaining to Discrepant Documents Under Confirmed L/C

4 3 I International Trade Finance Day 3: Managing Trade Finance Risks Under Standby L/C & Bankers Guarantees, Detecting Documentary Frauds, Structured Trade Finance & Operational Risks Principles and definitions of standby L/Cs and bankers guarantees Types of bankers guarantees and standby letters of credit Risks associated with bankers guarantees and applicable principles, and standby letters of credit Workshop 3 Bankers Guarantees & Potential Risks & Risk Prevention Fraud risk and maritime frauds, and detecting documentary credit frauds Appreciate operational risk event effect, legal risks, technology risks, etc. International trade finance operations policies and banks protection of operational risks Structured trade finance and operational risks and operational risk categories and drivers Credit facility structure and considerations under a credit paper the duty of credit analysts and relationship managers Legal Case Study 3 Risks on SBLC TRAINING METHODOLOGY Lectures and facilitations Workshop exercises and group discussions Legal case studies and group presentations LEARNING PARTNER Jack Tan Jack Tan is a trained practitioner with 27 years of intensive banking experiences in trade finance operations, structured trade and commodity finance (credit), credit and marketing (SME lending), corporate banking lending, aircraft financing, ship financing, loan restructuring and loan syndications. He has held VP(H) and Group Head / Team Head appointments in both Singaporean and American banks. Jack has also led and coordinated in-house loans and credit re-engineering system projects for some banks that he worked for. Jack currently heads a financial training and asset management company in Singapore and conducts in-house training programmes on marketing of trade finance facilities, structured trade finance, structured commodity finance, lending decisions, commercial and corporate banking credit analysis model, lending to SMEs, credit risk management, loan syndications, strategic bank management and marketing for leading banks and institutions in the region. He also markets equity-fund-raising projects to sophisticated investors through private placement of shares for corporations before their IPOs. In collaboration with the World Bank, Jack was an invited Programmes Consultant and Trainer to train senior bankers in China from 1997 to 1999, in Beijing and Shanghai, representing the Singapore government.

5 International Trade Finance I 4 He has been a trainer for the Institute of Banking & Finance, Singapore since 1988 and a trainer for the Institute of Bankers Malaysia since He serves as a certified trainer and a certified assessor for the Financial Training Institute of Singapore Management University responsible for Corporate Banking Trade Finance Operations and Credit Modules under the Financial Industry Competency Standards (FICS), which is overseen by the Institute of Banking & Finance under the direction of the Monetary Authority of Singapore (the Central Bank). He is also a lecturer at the Singapore Human Resources Institute s Diploma of Banking and Finance course, responsible for Bank Marketing and a lecturer for Edinburgh Napier University s Singapore BA/ BA (Honours) in Financial Services degree programme administered by SHRI Academy. He is responsible for two subjects, Financial Services Decision Making and Planning II and Monetary Theory and Policy. He was previously a lecturer for Monash University s bachelor degree programme and a tutor for Manchester Business School and University of Wales MBA programme in Singapore, in collaboration with the Institute of Banking & Finance. Jack Tan holds an MBA with Distinction in Strategic Marketing from the University of Hull, UK and a Bachelor of Commerce in Economics from the Nanyang University, Singapore (now known as Nanyang Technological University, Singapore). He is a UK Fellow of the Chartered Institute of Marketing (FCIM) and a registered Chartered Marketer in UK. He is also a US Chartered Family Office Specialist (CFOS). His research interests include financial accounting, stock investments, structured commodity trade financing, credit risk management, and equity-fund-raisings for corporations through private placement of shares before IPOs, aircraft financing, ship financing, syndicated loans, investment strategies and wealth management, and strategic marketing. FEE STF Member IBBM Member Non-Member RM1,800 RM2,250 RM2,700 REGISTRATION CLOSING DATE 3 Sep 2013

6 5 I International Trade Finance Understanding UCP 600 & ISBP 681 DATE/DURATION Oct 2013 (3 days) VENUE IBBM 16 PDUs awarded by ifs PREREQUISITE 1 year of experience in dealing with documentary credits. SYNOPSIS OF THE PROGRAMME This training programme is to explain the practical application of UCP 600 and the ISBP 681 to staff in the Documentary Credit Section of Trade Finance Operations in banks. LEARNING LEVEL Intermediate TARGET AUDIENCE Officers in the Documentary Credit section of Trade Finance Department of banks, Staff in Audit Section. LEARNING OUTCOMES A working knowledge and understanding on these two ICC documents are compulsory for all staff handling documentary credits. At the end of this training programme, participants would have attained a better knowledge and skills, and would be in a better position to handle documentary credits. COURSE OUTLINE Availability of Credits By Payment, Deferred Payment, Acceptance & Negotiation Articles 1 to 6 Explained Rights & Responsibilities of Various Parties to a Credit Explained with Reference to Relevant UCP 600 Articles Trade Documents: Original documents and copies Commercial invoice Transport documents Insurance documents Other Articles: 14, 29 to 39 Explained Explaining General Principles Detailed in ISBP 681 ISBP 681 Provisions on Trade Documents Explained When Explaining UCP 600 Trade Documents (Item No. 4 above) TRAINING METHODOLOGY Lectures and case studies.

7 International Trade Finance I 6 Abdul Latiff Abdul Rahim Abdul Latiff Abdul Rahim began his career as an Economist with a consultancy firm where he worked for 4 years. He was a banker for the major part of his working life. During the 16 years when he was attached to the United Asian Bank Berhad (UAB, now known as CIMB Bank Berhad), he served in various capacities. He was a branch manager in some of the larger branches and was also Head of UAB s Staff Training Centre. Subsequent to this, Latiff worked for a short period as the Head of the Staff Training Centre with Malayan Banking Berhad (Maybank). He was also Consultant and Trainer to the International Trade Centre, an agency of the World Trade Organisation (WTO) based in Geneva. He has also served in the ICC Malaysia Banking committee. He is presently the Principal Consultant with Nalco Associates, a consultant firm established in 1990, specialising in providing training and consultancy services in Trade Finance and Documentary Credits. He has lectured extensively on these subjects for a large number of commercial banks and at the Institutes of Bankers in Malaysia, Indonesia, Hong Kong, Bahrain, Oman, Saudi Arabia and the United Arab Emirates. He has also been frequently sought-after to give public lectures in Trade Finance and Documentary Credits. He has also conducted revision programmes for candidates appearing for the CDCS examination. He has been consulted by lawyers on matters relating to Trade Finance and he has also appeared as Expert Witness in court cases. He is also the Consultant in Trade Finance matters for a number of banks. Latiff has written numerous articles on Documentary Credits recorded in the Banker s Journal Malaysia, Documentary Credit Insight and other publications. He also has the following books to his credit: Cheques and the Bank Customers Basics on Trade Financing Guide to Bankers Acceptance and Export Credit Refinancing Documentary Credits in International Trade Bernard Wheble Discusses Case Studies on Documentary Credits (Editor) Guide to Documentary Credit Rules: UCP 500 Latiff holds a B.A. degree in Economics. He is a Fellow of the Institute of Bankers Malaysia and the Chartered Institute of Bankers (England). He is also a Certified Documentary Credit Specialist (CDCS). FEE STF Member IBBM Member Non-Member RM1,400 RM1,800 RM2,150 REGISTRATION CLOSING DATE 8 Oct 2013

8 7 I International Trade Finance ICC Opinions and Recent Leading LC C ourt Cases DATE/DURATION Nov 2013 (3 days) VENUE IBBM 16 PDUs awarded by ifs PREREQUISITE Knowledge in trade finance. SYNOPSIS OF THE PROGRAMME This programme provides participants with the latest ICC opinions on LC, ICC DOCDEX Decisions on LC disputes and leading court cases on trade finance. LEARNING LEVEL Advanced TARGET AUDIENCE Officers and Managers of Trade Finance Operations, Relationship Managers, Internal Auditors and Compliance Officers. LEARNING OUTCOMES Upon completion of the programme, participants will be able to reduce problems in handling and examination of documents under LC. COURSE OUTLINE Latest ICC Opinions Signatures Freight forwarder transport document Applicant s address in the transport documents Insurance document o Effective date o Settling agent Country of origin in the certificate of origin Latest DOCDEX Decisions Leading Court Cases Notice of Refusal When must the documents be returned? A case in London court Negotiation Can a nominated bank negotiate discrepant documents before beneficiary cures the discrepancies? A case in Hong Kong After acceptance of payment from the issuing bank under a discrepant presentation with a lesser amount, can beneficiary subsequently claim the difference from the issuing bank? Can issuing bank, after sending an acceptance notice, correct its mistake by sending a refusal notice? A case in Hong Kong Must collecting bank remind the drawee-importer to take up the documents if the shipments are of perishable products? A case in Malaysia Is a negotiating bank protected under the UCP600 if it has negotiated complying presentation under an LC with knowledge that the beneficiary s account is operated by unauthorised persons? A case in China TRAINING METHODOLOGY Workshop.

9 International Trade Finance I 8 Dr Soh Chee Seng Dr Soh Chee Seng is a Technical Consultant on trade finance issues for the Association of Banks in Singapore. He has more than 25 years experience in trade finance operations with local and foreign banks in Singapore and Malaysia. He was the VP and Head of International Trade Services in Overseas Union Bank, Singapore until He served as a member of the UCP600 Drafting Group commissioned by the ICC Banking Commission to revise UCP500 and also member of the taskforce and drafting group of the international standard banking practice for the examination of documents under documentary credits. He is also External Trade Finance Advisor to Deutsche Bank AG Asia Pacific and Associate Director of the Institute of International Banking Law and Practice, Inc., USA. He is also Singapore s Representative to the ICC Banking Commission. He is also Member of the Editorial Board of Documentary Credits World ( DCW ), a publication of the Institute of International Banking Law and Practice, Inc. and BAFT-IFSA in the USA. He has written a number of articles relating to trade finance and documentary credits in DCW and DCInsight, a publication of ICC Banking Commission. He has also been invited by a number of financial institutions, ICC National Committees and bankers associations in Europe, North America and Asia as well as the Supreme People s Court of China to conduct a series of workshops and seminars on International Trade Finance, Frauds and Risks in Trade Finance, International Standard Banking Practice, the Rules and Regulations of Commercial Letters of Credit, Independent Guarantees, Standby Letters of Credit and Incoterms for their members and judges. He also served as Expert Witness in numerous court cases relating to documentary letter of credit, standby letter of credit and documentary collection in Singapore, Malaysia, China, Hong Kong and South Korea. He received his Bachelor of Commerce degree with first class honours major in Economics from Nanyang University, Singapore, in 1973, and his Ph.D. in Law from the China University of Political Science and Law, Beijing, in His dissertation was Negotiation Under the Law of Letters of Credit. FEE STF Member IBBM Member Non-Member RM1,850 RM2,350 RM2,800 REGISTRATION CLOSING DATE 28 Oct 2013

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