OCI spotted red flags in 2021 and dodged trade finance fraud, following the recent alleged TMT fraud with Trafigura for $577m

Statement from OCI on trade finance fraud – following allegations from Trafigura Group that allegedly claim it was a victim of a

systematic fraud for $577m.

• As was told in the recent edition of the Wall Street Journal, OCI was approached by TMT in 2021

• The trade was littered with red flags

• OCI chose not to proceed

• Companies like OCI are more aware of the dangers of fraudulent type practices than some larger firms

• The matter highlights the importance of detailed auditing of the supply chain and identifying red flags

Oliver Chapman, CEO of supply chain specialists OCI, the UK’s No. 1 fastest growing company and 3rd fastest growing company in Europe, comments:

“In 2021, OCI were approached by TMT, but swiftly chose not to proceed. OCI are very experienced in spotting red flags in the supply chain and perhaps more aware of the risks of trade finance fraud, than other companies.

“Just knowing that trade finance fraud is a risk is insufficient. Companies need to understand how that risk could manifest itself. There is an analogy with a household trying to protect itself from potential burglars. It needs to know how it is vulnerable— for example if a window could provide an easy access point.

“A detailed understanding of the supply chain, not just of direct suppliers, but of suppliers to suppliers and so on, right through the supply chain, is essential.

“This is why OCI is a big supporter of a detailed supply chain audit, involving extensive due diligence on all suppliers in the chain, KYC (know your own customer) and updated regularly.

“As the recent example involving Trafigura Group highlights, supply chain finance fraud is a constant danger for organisations.

“For OCI, saying no to trade finance fraud is a key principle which underpins how the organisation operates. It’s not so difficult to spot, when you are experienced in the supply chain and know how”

OCI recently published a white paper on auditing the supply chain – a practice which we believe is essential to supply chain management. https://www.oci-group.co.uk/wp-content/uploads/2022/11/oci_whitepaper_7oct_printversion-1.pdf