SWIFT and the International Chamber of Commerce Banking Commission (ICC) have released new legal and technology standards for Bank Payment Obligation (BPO).
BPO is a new payment term that allows buyers and suppliers to secure and finance international trade transactions.
The BPO rules will establish uniform practices for BPO market adoption. Together with ISO 20022 messaging standards, these rules provide an industry wide foundation for banks to develop risk and financing services aligned with today’s technology.
Gottfried Leibbrandt, CEO at SWIFT, said: “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.”
Kah Chye Tan, chair of the ICC Banking Commission, said: “This is a golden age for trade finance. All banks wish to better engage in open account transactions and the BPO will make it happen. Its is vital that the industry aligns on enhanced rules and tools and by benefiting from ICC and SWIFT standards, banks will be better equipped to carry out their trade business.”
