DEALS
Zhong Lun Advises Bank of Tokyo-Mitsubishi UFJ (China), Ltd. on TSU and BPO Business
Zhong Lun Advises Bank of Tokyo-Mitsubishi UFJ (China), Ltd. on TSU and BPO Business
Zhong Lun advised Bank of Tokyo-Mitsubishi UFJ (China), Ltd. on its TSU and BPO business recently.
Open account business is increasing becoming the mainstream of payment method in international trade in recent years. As a reaction, TSU (Trade Services Utility) is a new trade service utility system designed and developed by SWIFT. The TSU is a centralized data processing engine providing centralized matching of data in such documents as purchase orders, transport documents and commercial invoices. Such engine enables banks to participate in open account business more efficiently and to provide more value added services to corporates, including trade settlement, financing and management of receivables and payables. In addition, the TSU now supports the service of a BPO (Bank Payment Obligation), which involves bank credit into TSU business. Such system enables banks to undertake first-payment obligations as they do under settlement by letter of credit. Besides, it has advantages of saving time for posting and reviewing documents and of collecting proceeds more efficiently since documents information can be delivered through electronic platform. The TSU and BPO services materially improve trade financial services to corporates.
Wantao Yang (partner), Snow Wu, Karen Zheng and other professionals of Zhong Lun provided PRC legal services to Bank of Tokyo-Mitsubishi UFJ (China), Ltd. to establish such new TSU and BPO servicing system in the PRC and prepared template for its future TSU and BPO services.