Trade finance operations¶
| ID | MOD-067 |
| System | SD04 |
| Repo | bank-payments |
| Build status | Not started |
| Deployed | No |
Trade finance operations provides the operational layer for conditional payment instruments — letters of credit, bank guarantees, and standby LCs. These instruments underpin cross-border trade by providing payment assurance to beneficiaries while protecting buyers from paying before goods or services are delivered. The module manages the instrument lifecycle from issuance to final settlement or expiry.
The core workflow is document-driven: applicants submit trade documents (invoices, bills of lading, certificates of origin) through the app; ops staff review each document against the instrument's stated conditions using a structured checklist. Compliant presentations trigger the payment obligation via MOD-020 (pre-payment validation) and MOD-022 (payment audit trail). Discrepancies are flagged as exceptions for client resolution.
Required to support PRD-015 (Bank Guarantee / Letter of Credit). Designed to comply with ICC UCP 600 and ISP98 rules governing documentary credit operations, with all document presentations and compliance determinations retained in the immutable audit trail.
Module dependencies¶
Depends on¶
| Module | Title | Required? | Contract | Reason |
|---|---|---|---|---|
| MOD-020 | Pre-payment validation suite | Required | — | LC and guarantee payment execution passes through pre-payment validation before settlement. |
| MOD-013 | Real-time sanctions screener | Required | — | Counterparty sanctions screening is required before any trade finance transaction is processed. |
| MOD-001 | Double-entry posting engine | Required | — | Trade finance settlement entries are posted through the posting engine when conditions are met. |
| MOD-104 | AWS shared infrastructure bootstrap | Required | — | AWS shared infrastructure provisioned by MOD-104 (EventBridge buses, S3, KMS, Kinesis, Cognito) is required before this module can be deployed. |
| MOD-103 | Neon database platform bootstrap | Required | — | Neon database and schema provisioned by MOD-103 must exist before this module can read or write Postgres. |
Required by¶
(No modules in this wiki currently declare a dependency on this module.)
Policies satisfied¶
| Policy | Title | Mode | How |
|---|---|---|---|
| PAY-002 | Settlement Risk Policy | GATE |
Validates all conditions before executing the payment obligation on an LC or guarantee — settlement is blocked until conditions are confirmed. |
| AML-008 | Cross-Border Transfer Reporting Policy | LOG |
Logs all cross-border trade finance transactions and counterparty details for AML screening and reporting. |
Capabilities satisfied¶
| Capability | Title | Mode | How |
|---|---|---|---|
| CAP-086 | Trade document validation | GATE |
Drives the document review workflow — collecting, validating, and approving trade documents before authorising payment. |
| CAP-106 | Trade lifecycle management | AUTO |
Manages the full lifecycle of letters of credit and guarantees from issuance through to expiry or payment. |
| CAP-107 | Document processing workflow | AUTO |
Routes trade documents through the review and approval workflow, tracking status and escalating exceptions. |
Part of SD04 — Payments Processing Platform
Compiled 2026-05-22 from source/entities/modules/MOD-067.yaml