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Cross - Border Payment Mechanisms and Risk Mitigation Techniques

Workshop

Program Overview

This course is essential for understanding international trade payment methodologies and the significance of corresponding banking. In the competitive global marketplace, exporters need to offer attractive sales terms with the right payment methods to ensure timely and complete payments. The course emphasizes selecting appropriate payment methods to minimize risks while meeting buyer needs, as international trade carries inherent risks that can affect payment timing.

Course Outline

  • Regulations for International Payments in Pakistan
  • Payment Systems: SWIFT, SEPA, ACH, Blockchain Solutions
  • Import Procedures: Firm Contracts, Supplier Credibility
  • Modes and Terms of Payment
  • Letter of Credit: Opening, Amendments, and Prohibited Types
  • Correspondent Banking
  • Payment Settlement Risks and Mitigation Techniques
  • Trade Payment Methods: Advance Payments, Open Accounts, Documentary Collections, Credits
  • Types of Letters of Credit: Revocable, Irrevocable, Confirmed, Unconfirmed, Revolving, Transferable, SBLC, Back-to-Back, Red & Green Clause LCs
  • LC Discrepancies, Transaction Flow Charts, Key Articles of UCP-600, and URC-522

Learning Objectives

  • Understand regulations in Pakistan for international payments.
  • Explore various payment systems like SWIFT, SEPA, ACH, and blockchain-based solutions.
  • Assess import contracts and the credibility of foreign suppliers.
  • Learn about different payment modes and import terms.
  • Understand the processes for opening and amending Letters of Credit (LC) and registered contracts.
  • Identify types of LCs not permitted.
  • Grasp the role of corresponding banking.
  • Identify risks in payment settlement and explore risk mitigation techniques.
  • Explore methods of payment in trade, including advance payment, open accounts, and documentary credits.
  • Learn about various types of LCs, including revocable, irrevocable, confirmed, unconfirmed, revolving, transferable, standby, back-to-back, and red/green clause LCs.
  • Recognize common discrepancies in LCs.
    Understand LC transactions through flowcharts.
    Review important articles of UCP-600 and URC-522.

Learning Outcomes

  • Enhanced Understanding: Participants will gain a deep understanding of cross-border payment mechanisms, regulations, and compliance requirements.
  • Improved Risk Awareness: Participants will develop awareness of risks like currency exchange, regulatory compliance, operational challenges, and fraud, along with strategies to mitigate them.
  • Compliance Adherence: Organizations will improve compliance with international regulations and standards such as KYC and AML.
  • Cost Reduction: Companies may reduce costs through efficient payment mechanisms and better risk management, including process optimization and reduced errors.
  • Improved Customer Satisfaction: Smoother, secure, and efficient cross-border payments will lead to higher customer satisfaction, faster transactions, lower fees, and greater transparency.

Who Should Attend?

  • Trade Officers
  • Foreign Exchange Officials
  • Remittance Officers
  • Compliance Officers
  • Branch Managers
  • Customer Service Managers (CSMs)
  • Audit Officials
  • Trade Finance Students

Program Fees

PKR/- 14,000
Exclusive of Taxes

Date

October 12, 2024

Duration

9:30 am to 4:00 pm

Venue

EMEC @IoBM, Karachi

Registration

Click here

Program Facilitator

Ejaz Ahmed Qadri

MBA, LLB, MA, DAE

Ejaz Ahmed Qadri is a seasoned banking and training expert with nearly three decades of experience, primarily at the State Bank of Pakistan and its subsidiary, SBP Banking Services Corporation (Bank). His expertise spans various operational departments, including FEOD, EPD, and Training & Development.

Key Experience:

  1. State Bank of Pakistan & SBP BSC: Held pivotal roles across departments like FEOD, EPD, and T&DD.
  2. Training & Development: Distinguished as an in-house trainer, conducting modules on International Trade and Forex Operations.
  3. Habib Metropolitan Bank Ltd.: Chief Facilitator and Trade Consultant since 2015, focusing on content development and nationwide training.
  4. Certifications & Affiliations: Certified Trainer and member of the Institute of Bankers Pakistan (IBP) since 2008, with affiliations to prominent training forums.
  5. Freelance Consulting: Provided consultancy to leading businesses in Pakistan.
  6. Educational Qualifications: Holds an MBA in Banking & Finance from IoBM Karachi, among other degrees.
  7. Publication & Thought Leadership: Regular contributor to discourse on international trade through various publications.