Trade Finance Critical conditions Providing transparency into trade Enabling interoperability with Rewriting regulatory guidance finance agreements legacy platforms and legal frameworks Bills of lading and invoice details must be To ensure smart contracts containing the Agreed upon procedures must be established transparent within the smart contract to reduce details of the financing agreement flow within the end-to-end trade finance process to counterparty risk through the trade finance process, FIs and provide regulators with a real-time view of bills technology providers must ensure the ledger is of lading, letters of credit, etc. interoperable with many different platforms Why? Why? Why? Ecosystem participants must have a The creation of letters of credit/bills of lading Compliance officials must have a real-time transparent view into invoice and bills of lading and goods inspection documentation requires view of financing details within the smart details to ensure factoring and double stakeholders to integrate the developed DLT contract to enforce regulatory guidelines spending are not taking place solution with legacy systems Challenge Challenge Challenge FIs and shipment carriers must establish FIs, customs, freight, importers and exporters Given the lack of legal/regulatory precedent, procedures and liability models that govern the utilize multiple technology solutions that may the procedures that facilitate the use of smart transparent sharing of financial information be incapable of interfacing with the ledger contract reporting to regulatory agencies will be difficult to establish Critical condition categories WORLD ECONOMIC FORUM | 2016 Stakeholder Technology Regulatory Governance 81 alignment