Strategic Consultant
Starting December 1, 2025, Iraq's Central Bank will mandate a Prior Declaration System for imports, enhancing financial transparency and combating fraud. The system links goods with financial transactions before currency transfers, improving customs revenues and modernizing trade. Importers must precisely document and coordinate with banks and customs to comply with new requirements.
The corporate lending and trade finance sectors are evolving due to digitalisation, AI, and global market dynamics, creating opportunities alongside challenges. Institutional investors and private credit funds are gaining prominence, requiring agility and transparency. Financial institutions must enhance digital services to meet client expectations while addressing a looming talent crisis as seasoned professionals retire. AI is transforming operations, and tokenisation may revolutionise trade finance, although standardisation hurdles exist. Adapting to these trends is essential for success.
The global trade finance industry is transitioning from paper-based processes to digital systems through digitisation and digitalization. Digitisation converts physical documents into digital formats, while digitalization enhances workflows using technology. This shift improves efficiency, transparency, cost management, and risk assessment, despite challenges like interoperability and cybersecurity risks. Embracing these changes is crucial for future competitiveness.
The Boston Tea Party in December 1773 exemplified the impact of supply chain disruptions, highlighting their role in historical movements and modern commerce. Today's global supply chains face challenges from pandemics, natural disasters, and cyberattacks. Emphasising resilience, businesses must diversify suppliers, optimise inventory, adopt technology, assess risks, and strengthen partnerships to navigate future uncertainties effectively.
Managing General Agents (MGAs) are vital in international trade, bridging insurance companies and clients with specialized expertise in underwriting, claims management, and policy issuance. They offer tailored solutions for risks like marine transit, trade credit, and political risks, enhancing business continuity and compliance amidst complex global regulations. MGAs provide essential support for risk management in global commerce.
E-invoicing is revolutionizing business processes by enabling electronic generation and processing of invoices, enhancing automation and global tax compliance. It minimizes manual errors, reduces costs, and accelerates payments while ensuring compliance with diverse tax regulations. As businesses digitize, e-invoicing plays a pivotal role in efficiency and sustainability, indicating its future significance.
Indrajit Roy Choudhury 