For sellers, the financing is offered as pre-shipment financing, and the seller may still require the buyer to pay by letter of credit. ![]() ![]() It is important to note that the finance produce can be offered to both buyers and sellers. (5) A credit facility will be sanctioned for a designated period. (4) Assignment of receivables needs to be done by the exporter. (3) Shipment must be done through Maersk (although it is possible to use the trader’s own current forwarder/Customs House Agents for logistics management). (2) Pricing is transparent – there are no hidden costs. They will be LIBOR (London Interbank Offered Rate) linked (and when LIBOR is finally abolished, this will change to the relevant interest rate benchmark in question). (1) Goods shipped through Maersk will be taken as collateral. Its website describes its workings in the following way. It also stresses that even states that have banned the issue and trade of cryptoassets might not be immune to these new challenges.ġ4 The facility would be transacted through Maersk Trade Finance A/S incorporated in Copenhagen, Denmark, part of the Maersk Group. ![]() Drawing on tried and tested forms of blockchain technology-based trade transactions, this work examines the fault lines in the current regulatory system and questions how best these gaps should be remedied. Maritime trade poses unique challenges because of several significant factors: the fact that it concerns large sums but many linked trading transactions over the same goods its use of documents and involvement of numerous faceless entities and its cross-border setting. This article explores how anti-money-laundering legislation should respond to the use of blockchain technology in shipping and trade. However, it goes without say that the technology also brings with it the risk of abuse leading to trade-based money laundering. There is much to be welcomed concerning the role blockchain technology can play in modernising and enhancing international trade, creating a more level playing field and reducing costs.
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