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Commodity Finance Risk and Collateral Management: New Threats and Regulatory Developments
When: March 13, 2025
Location: GTR Africa, 2025 – Cape Town
People: Simon Cook

Simon Cook participated in a panel discussion titled "Commodity Finance Risk and Collateral Management: New Threats and Regulatory Developments" on the first day of GTR Africa, 2025, held in Cape Town on March 13 and 14.

Cases of trade finance fraud have made regular commodity industry headlines in recent years, from high profile instances of ‘double financing’ to trade-based money laundering and the funding of shipments of non-existent goods resulting in major losses for industry lenders. Warehouse receipt financing, however, a valued source of liquidity for the commodity sector, continues to be a target for nefarious actors.

The session discussed the financial crime and operational risks associated with warehouse receipt financing structures, highlighting red flags that can help lenders identify possible frauds at the deal origination stage. Perspectives were offered on the recent adoption of a model law governing warehouse receipts by the UN, its potential to open up new sources of finance for African commodity trade, and how it can further boost fraud prevention.