You are here

Commodity trade finance fraud bleeding banks

For the second time since 2014, some lenders are facing multimillion-dollar losses after being tricked into making loans secured by goods that did not exist

BT_20170706_CPMETAL6A_2966996.jpg
Melbourne-based ANZ (above) and French lender Natixis are facing loan losses after discovering fake documents used to verify nickel stored in Asian warehouses owned by Access World, a subsidiary of Glencore. The deals involved US$305 million for ANZ and US$32 million for Natixis, according to court filings this year.

BT_20170706_CPMETAL6A_2966996.jpg
Melbourne-based ANZ and French lender Natixis (above) are facing loan losses after discovering fake documents used to verify nickel stored in Asian warehouses owned by Access World, a subsidiary of Glencore. The deals involved US$305 million for ANZ and US$32 million for Natixis, according to court filings this year.

London

FOR all the high-tech wizardry of modern financial markets, there's one corner of the commodity world that still depends almost entirely on printed paper - making it an easy target for crooks.

Buyers and sellers of base metals like copper, aluminium and nickel use documents

sentifi.com

Market voices on:

Powered by GET.comGetCom