Intelligence
Trade Compliance Glossary
Definitions of key terms used in CRT's standards documents, learning programmes and intelligence products — and in the broader international commodity trade environment. The glossary is a live document, expanded as the initiative develops.
Core terms — 20 definitions. Expanded regularly.
20 results
AML
Anti-Money Laundering. The regulatory framework and internal controls designed to detect and prevent the use of financial systems to disguise the proceeds of crime.
Bill of Lading (B/L)
A legal document issued by a carrier to acknowledge receipt of a shipment. Functions as a receipt of cargo, a document of title to the goods, and a contract of carriage. Endorsed and transferred to transfer title to the goods.
CDD (Customer/Counterparty Due Diligence)
The process of identifying and verifying the identity of a counterparty, understanding their business and activities, and assessing associated risks. Required by AML frameworks and essential good practice in commodity trade.
Competence Framework
A structured description of the knowledge, skills and behaviours required to perform a professional role competently. CRT's Professional Competence Framework is the foundation of its certification programme.
CPD (Continuing Professional Development)
Structured learning activity undertaken by a professional to maintain and extend their competence beyond initial qualification. Required by many professional bodies as a condition of maintaining certification.
DMC (Digital Mandate Credential)
A CRT proposed verifiable digital record confirming that a named individual is authorised to act on behalf of a specific organisation in a defined capacity in commodity trade.
Documentary Collection
A trade payment method in which the exporter's bank sends shipping documents to the importer's bank, which releases them on payment (D/P — Documents against Payment) or acceptance of a bill of exchange (D/A — Documents against Acceptance).
Incoterms
International Commercial Terms. A set of standard trade terms published by the International Chamber of Commerce, defining the responsibilities of buyers and sellers for the delivery of goods, including risk transfer and cost allocation. Current version: Incoterms 2020.
KYC (Know Your Customer)
The process of verifying the identity of a client or counterparty, understanding their business activities, and assessing the risks associated with the relationship. A regulatory requirement in many contexts and a risk management best practice in commodity trade.
Letter of Credit (LC)
A financial instrument issued by a bank on behalf of a buyer, guaranteeing payment to the seller upon presentation of specified documents. Governed by UCP 600 for commercial letters of credit. One of the most secure payment methods in international trade.
Mandate
Written authority granted by a principal (buyer or seller) to an agent or intermediary to act on their behalf in specified capacities. A genuine mandate must be documented, current, and within the scope of the agent's authority.
OFAC
Office of Foreign Assets Control. The US Treasury agency that administers and enforces US economic and trade sanctions. OFAC's Specially Designated Nationals (SDN) list is a primary reference for sanctions screening.
OFSI
Office of Financial Sanctions Implementation. The UK body responsible for implementing and enforcing the UK's financial sanctions regime, which operates independently following the UK's departure from the EU.
Price Reporting Agency (PRA)
Organisations that collect price data from market participants and publish assessed prices and benchmarks for commodity markets. Major PRAs include Platts (S&P Global), Argus Media, OPIS, and the LME for metals.
Registered Trader
An individual who holds CRT membership and, where applicable, CRT certification. The term defines the intended scope of CRT's professional community.
Sanctions
Restrictions imposed by governments or international bodies on financial transactions, trade, or other dealings with designated individuals, entities, vessels, sectors or countries. Non-compliance carries criminal, civil and reputational consequences.
SGS
Société Générale de Surveillance — one of the world's largest inspection, testing and certification companies. Commonly referenced in commodity trade for quality and quantity inspection. (Note: SGS is a specific company; the term is often used generically to mean independent inspection, but proper usage refers to SGS specifically.)
TIP (Trade Integrity Passport)
CRT's proposed verifiable digital credential issued to certified professionals. Summarises CRT certification level, membership status and conduct record for counterparty verification.
UCP 600
Uniform Customs and Practice for Documentary Credits, Publication 600. The ICC rules governing documentary letters of credit. The current version was published in 2007 and is the standard reference for LC transactions worldwide.
URC 522
Uniform Rules for Collections, Publication 522. The ICC rules governing documentary collections (D/P and D/A). The current version was published in 1995.