Trade Finance & Compliance Reference
Article-by-article UCP 600 and ISBP 745, the full SWIFT MT700 field map, a sanctions and compliance primer, and the Incoterms × payment matrix.
UCP 600 is the ICC's Uniform Customs and Practice for Documentary Credits - 39 articles that govern almost every commercial Letter of Credit in the world. ISBP 745 is the companion practice guide banks use to examine documents. Together they define what 'a complying presentation' means.
SWIFT MT700 is the message used to issue a documentary credit. Its 30+ fields - 40A, 20, 31C, 31D, 32B, 39A, 39B, 41A, 42C, 43P, 43T, 44A, 44B, 44C, 44E, 44F, 45A, 46A, 47A, 48, 49, 71B, 78, and more - carry every operative term of the LC.
Sanctions screening is not optional. OFAC (US), the EU Consolidated Financial Sanctions List, HMT (UK) and UN sanctions apply extraterritorially to USD-denominated trade. Every counterparty (buyer, seller, intermediary, carrier, bank, insurer, notify party) must be screened, plus vessel names, and any dual-use goods classification.
Frequently asked questions
What is the difference between UCP 600 and ISBP 745?
UCP 600 (2007) is the binding rule set banks and parties opt into by reference in the LC. ISBP 745 (2013) is the ICC's practice guide showing how UCP 600 is applied in document examination. Banks reference both when raising discrepancies.
What is SWIFT MT700 Field 46A?
Field 46A is 'Documents Required' - the list of documents the beneficiary must present for a complying presentation. It is where discrepancies most often originate: descriptions in 46A must be echoed exactly on the commercial invoice.
Which sanctions lists must I screen?
At minimum: OFAC SDN and Consolidated Sanctions List (US), EU Consolidated Financial Sanctions List, HMT Financial Sanctions List (UK), and UN Security Council Sanctions. If routing through USD, OFAC applies extraterritorially. Screen all named parties, vessels and dual-use goods.