Onboarding and monitoring financial counterparties
Our approach for approving financial counterparties who wish to participate in UKEF transactions.
UK Export Finance (UKEF) has established a framework for onboarding and monitoring financial counterparties.
Process
The onboarding process involves a compliance assessment, a risk assessment, an operational capability assessment and, under certain circumstances, a climate change assessment.
Timeframe
The timeframe will be dependent on the financial counterparty’s credit rating, experience of dealing with Export Credit Agencies (ECAs), compliance measures and operational capability.
Regulated investment-grade financial institutions with relevant experience of ECA business are acceptable, subject to compliance and operational capability checks.
Financial counterparties not meeting the criteria above may be approved on a case-by-case basis taking into account how the institution is regulated, along with financial, operational, reputation, compliance risk assessments and ECA experience.
The timeframe will typically range from two to nine weeks, but will consider the commercial needs of any transaction under consideration.
Products covered by the framework
This framework is intended to cover financial institutions participating in all UKEF products, including security trustees, with whom UKEF has a direct relationship.
It is also intended to be applicable for potential future products. For clarity, it does not include reinsurers, insurance brokers, third party intermediary agents on transactions, or financial institution counterparties involved in treasury operations.
Re-approvals after onboarding
Once given, an approval will remain in place indefinitely. Re-approval will be required if there has been a material change in circumstances in:
- credit rating
- experience
- compliance/Know Your Customer (KYC) processes
- data security
- regulatory environment and rule of law
Onboarding for additional products
If approval has been sought for one group of products (for instance MGA products), financial counterparties will need to be onboarded for other products as the levels of experience and operational capability may differ.
Branches or subsidiaries of onboarded banks
Branches generally do not require separate onboarding, while subsidiaries do. However, UKEF will consider each case based on the specific circumstances.
Contact us
To find out more about onboarding and monitoring, contact our customer services team.
Email customer.service@ukexportfinance.gov.uk or call +44 (0)20 7271 8010.
Last updated 31 January 2023 + show all updates
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A change to the process section.
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First published.