GovWire

Detailed guide: Onboarding and monitoring financial counterparties

Uk Export Finance

December 4
16:47 2020

UK Export Finance (UKEF) has established a framework for onboarding and monitoring financial counterparties.

Process

The onboarding process involves a compliance assessment, a risk assessment and an operational capability assessment.

Timeframe

The timeframe will be dependent on the financial counterpartys credit rating, experience of dealing with Export Credit Agencies (ECAs), compliance measures and operational capability.

Regulated investment-grade financial institutions with relevant experience of ECA business are acceptable, subject to compliance and operational capability checks.

Financial counterparties not meeting the criteria above may be approved on a case-by-case basis taking into account how the institution is regulated, along with financial, operational, reputation, compliance risk assessments and ECA experience.

The timeframe will typically range from two to nine weeks, but will consider the commercial needs of any transaction under consideration.

Products covered by the framework

This framework is intended to cover financial institutions participating in all UKEF products, including security trustees, with whom UKEF has a direct relationship.

It is also intended to be applicable for potential future products. For clarity, it does not include reinsurers, insurance brokers, third party intermediary agents on transactions, or financial institution counterparties involved in treasury operations.

Re-approvals after onboarding

Once given, an approval will remain in place indefinitely. Re-approval will be required if there has been a material change in circumstances in:

  • credit rating
  • experience
  • compliance/Know Your Customer (KYC) processes
  • data security
  • regulatory environment and rule of law

Onboarding for additional products

If approval has been sought for one group of products (for instance MGA products), financial counterparties will need to be onboarded for other products as the levels of experience and operational capability may differ.

Branches or subsidiaries of onboarded banks

Branches generally do not require separate onboarding, while subsidiaries do. However, UKEF will consider each case based on the specific circumstances.

Contact us

To find out more about onboarding and monitoring, contact our customer services team.

Email customer.service@ukexportfinance.gov.uk or call +44 (0)20 7271 8010.

Published 4 December 2020

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