SWIFT and the Banking Commission of the International Chamber of Commerce (ICC) have announced that new legal and technology standards for Bank Payment Obligation (BPO) are now available.
In a statement, the financial messaging provider said that the BPO is a new payment term that allows buyers and suppliers to secure and finance international trade transactions.
It provides the benefits of a letter of credit in an automated and secured environment, and enables banks to offer flexible risk mitigation and enhanced financing services to their corporate customers.
"The BPO, with the underlying ISO 20022 standards, is shaping the future of the trade industry and is a key opportunity for banks to innovate in the services they offer to their corporate customers," said Gottfried Leibbrandt, CEO, SWIFT.
This new ICC and SWIFT release offers a combination of legally-binding rules and electronic messaging standards. The BPO rules will establish uniform practices for BPO market adoption.
"This is a golden age for trade finance," said Kah Chye Tan, Chair of the ICC Banking Commission and Global Head of Trade and Working Capital at Barclays. "All banks wish to better engage in open account transactions and the BPO will make it happen."
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