Compliance

We help small ECA lenders and buyers of ECA loan portfolios review compliance of their ECA-covered loan disbursements

Lenders face the following challenges:

  • When the borrower defaults on an ECA-covered loan, the ECA cover is generally contingent on the correct observance of ECA utilization procedures during the disbursement of the loan
  • If the loan disbursement documents were not fully compliant with the ECA requirements, the ECA may not cover lender's losses - This is a significant economic and reputational risk to lenders and to buyers of ECA-covered loan portfolios!
  • The ECA utilization process is complex and document-intensive
  • Lenders can only make disbursements under ECA facilities after reviewing and accepting disbursement documents
  • Borrowers typically require fast disbursement turnarounds, which require fast documentary review
  • ECA utilization procedures and requirements may be different from transaction to transaction
  • Unless the financial institution has a high constant volume of ECA transactions, the documentary process tends to be lumpy, with high requirements of review staff at some times, and low requirements at other times
  • Maintaining staff trained on ECA utilizations may be costly and inefficient for occasional ECA-covered lenders or participants

We offer the following services:

  • Exhaustive documentary review and certification of ECA-covered disbursements
  • Compliance review of ECA-covered loan portfolios
  • Review and audit of ECA-covered lender procedures and standards

Locations and expertise:

Our skilled and experienced staff in New York, London, and São Paulo is trained and has experience working with North American, European, and Asian ECAs and is always on call.

How we can help lenders mitigate documentation risk:

We can work for ECA-covered lenders in a variety of ways. In many cases, lenders forward us the utilization documents from the borrowers and exporters, as well as underlying loan documentation. Following our satisfactory review the lender then makes a disbursement.

A lender can also engage us to work more seamlessly with them. The borrower and exporter may be directed to forward their utilization documents to us. We can help these parties review and prepare these documents, and once we certify compliance, the lender may make a disbursement:

If the disbursement package is complete, we guarantee a maximum 24-hour turnaround no matter what.


Recent compliance experience:


Non-bank financial institutions:

Since 2016, several non-bank financial institutions, including a mutual fund, have counted on us to perform documentary reviews on the loans they place with third parties.

We have performed hundreds of documentary reviews for financial institutions, with a maximum turnaround of 24 hours, and 100% accuracy.

We have also performed reviews of an entire porfolio of ECA-covered loans for a buyer, as well a review of the lender's compliance with ECA utilization procedures.