Trade finance

Red flags include:

  • Import or export of items at prices above or below normal market rates

  • Changes to letter of credit beneficiary just before payment is made

  • Change to the place of payment to an account in another country to the beneficiaries stated location

  • LOC is not in line with customer business

  • LOC is for goods not in demand in the importing country

  • LOC is for goods that are not produced in the exporting country

  • Commodities are shipped through locations without an apparent economic or logistical reason

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Previous Topic: Commercial account activity

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