Part of the Global Trade Certificate (GTC)

Introduction to Documentary Credits - eCourse

This letter of credit course will teach you the importance of LCs in enabling trade, and their versatility in addressing a range of client needs

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LEARNING OBJECTIVES

By the end of this letter of credit course you will be able to:

Explain the needs of importers and exporters and how a documentary credit (DC) helps meet them.

Describe the UCP 600, MT 700 SWIFT messages, and the ICC Incoterms® rules.

Describe different types of DCs, including confirmed, transferable, red clauses, back-to-back and revolving.

Describe the document preparation, discrepancies, and drawing of a DC.

Describe the 5 types of risks for documentary credits.

Differentiate between open account terms and cash in advance.

Explain the reasons to issue a Documentary Credit.

Describe the differences between a basic, unconfirmed LC, and a Sight LC.

Understand the SWIFT/ICC “bank payment obligation” (BPO).

Describe the negotiation, financing and settlement of a DC.

Understand how DCs can improve the credit quality of a transaction.

Understand how fraud can play a role in DCs.

COURSE STRUCTURE & CURRICULUM

Access period

12 months

Duration

3 hours

Credits/CPDs

3 points

Parent Certificate

GTC

Lessons

Language

English

Lesson 1: General Overview

Lesson 2: Rules and Practices

Lesson 3: Transaction Flow

Lesson 4: Risks Involved

Lesson 5: Confirmation of DCs

Lesson 6: Banking Systems

Lesson 7: Capital Adequacy and Basel

Lesson 8: Assessment

Who should take this course?

This letter of credit course is designed for general practitioners working in banks, corporates, or financial institutions in functions such as relationship management, credit and compliance, but with an interest in trade finance.

Animated explainer videos

This eCourse includes 18 animated videos to help you better understand core concepts

Study guide

A downloadable study guide will help you recap the key points offline and access additional resources

COURSE AUTHOR

Alexander Malaket

President, Opus Advisory Services International Inc

Alexander Malaket is a recognized specialist in international trade and trade finance, with over 25 years of professional experience in Canada and internationally. He is Deputy Head of the Executive Committee of the ICC Banking Commission (Paris), a member of the Executive Committee of the Board of Directors, World Trade Centre (Winnipeg) and a member of the Board of the Forum for International Trade Training (Ottawa). Alexander is a member of the B20 Task Forces for 2015, the International Affairs Committee of the Canadian Chamber of Commerce, and a “Nominated Expert” in trade finance at the UN/CEFACT, as well as a member of the ICTSD/World Economic Forum E15 Initiative. Author of “Financing Trade and International Supply Chains” published by Gower, UK in 2014, Mr. Malaket is a frequent speaker, panel chair and participant at leading industry events around the world.