Trade COmpliance

Strengthen the digitalisation of your Trade Finance compliance
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Strengthen your operations by ensuring compliance with international sanctions and AML/CFT regulations.
Streamline manual processes to enhance the profitability of your trade finance business.
Gain a deeper understanding of your clients' operations to build stronger, more insightful relationships.

LESTR: a data collection and analysis solution to automatically assess the compliance of international trade operations

The rapid expansion of the global economy has made trade finance a high-risk sector, often exploited for money laundering, terrorist financing, and evasion of sanctions or other regulatory restrictions. Financial institutions engaged in trade finance face intense regulatory pressure to mitigate risks related to financial crime. The challenge lies in the fact that potentially suspicious activities can occur at multiple levels and stages of trade transactions. These risks may stem from the characteristics of a specific customer or be linked to the transaction itself, including the goods, documents, counterparties, and more.
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In this context, the ability to effectively screen transactions and ensure compliance with sanctions and regulations depends on the following capabilities:

Connect data sources

A 360° view of your shipments
Lestr offers an easy-to-read, navigable, and comprehensive overview that highlights the key characteristics and risks of your shipments. Drawing from over 100 constantly updated data sources, Lestr stands out from other solutions by its ability to analyse each transaction across multiple dimensions, including the transport and logistics chain, the nature and pricing of goods, stakeholders, and the broader economic context.
A recognised technology
The generation of this 360° view is powered by cutting edge technology, enabling real-time data collection from a multitude of sources. This technology has gained widespread recognition for its innovative breakthroughs, as demonstrated by numerous awards for data processing innovations and a strong track record with leading international companies.
Comprehensive container tracking
Unlike traditional tracking systems that only trace the ship listed on the bill of lading, Lestr provides end-to-end tracking, monitoring goods from the moment they are handed over to the shipping company or freight forwarder until final delivery to the recipient. Our data shows that approximately 70% of shipments involve at least one transhipment, making it essential to conduct monitoring at the container level, not just at the vessel level.
Lestr integrates a variety of data sources, including carriers, freight forwarders, marine tracking systems, and sanction lists.
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Lestr automatically utilises collected shipment data to perform most of the regulatory controls required by the most stringent authorities.
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Automate controls

Two levels of controls
Lestr automatically performs controls on each shipment to prevent and detect illicit activities. These controls operate at two levels. In the first step, Lestr evaluates the transaction from a purely transactional perspective. In the second step, it takes a broader view, considering all past transactions for the same customer, along with a dynamically determined set of similar transactions (including factors like the type of goods, industry sector, and geographical area).
This two-step approach addresses most of the "red flags" commonly highlighted in compliance literature.
Multi-source reconciliations
Lestr cross-references data from multiple sources to detect inconsistencies. For example, it checks the accuracy of shipping routes by comparing carrier information with vessel AIS signals. This ensures teams have near real-time data and can detect deviations from declared routes, which could indicate illicit activity. Similarly, Lestr verifies the consistency of the bill of lading with shipping and freight forwarding data. Any discrepancies could signal documentary fraud or "phantom shipping."
Anomaly detection
Using advanced machine learning techniques such as the Isolation Forest algorithm, Lestr identifies anomalies, including inconsistencies in trade flows, over- or under-invoicing, and significant changes in customer behaviour.

Support efficient decision-making

Information-sharing features
Lestr enhances collaboration by offering information-sharing functions for shipments that require further investigation. The platform applies the four-eyes principle through a transparent escalation management process. For clients seeking a fully integrated experience, these standard features can be expanded with API-based solutions that seamlessly interface with internal escalation systems.
Tamper-proof audit trail
Compliance can only be assured if there is a reliable audit trail, enabling third parties to objectively assess the quality and relevance of the controls performed. Lestr automatically generates a tamper-proof audit trail for each shipment, documenting all controls—whether automatic, manual, initial, or additional. This audit trail can be downloaded by operators and archived in the customer database, ensuring it's always available for internal audits or regulatory requests.
Build a centralised knowledge base
Lestr allows you to create and manage a centralised knowledge base for your shipments, offering two key benefits. First, the consolidated view helps identify patterns that may require increased oversight for specific customers or types of shipments. Second, it provides deeper insights into your business operations, enabling you to enhance customer service and develop more effective retention and acquisition strategies.
Lestr's knowledge database is highly flexible, allowing users to generate statistical views filtered by one or more criteria.

LESTR: your one stop-shop for Trade Compliance

The first solution capable of identifying suspicious activities in every aspect of a trade finance transaction.

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Comply with international sanctions

Track your shipments and receive automatic alerts if embargoed ports or countries are involved in your cargo's route or the vessel's history. Screen all entities—shippers, consignees, vessel owners, and more—along with individuals and vessels involved in your transaction to detect any potential criminal activity.
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Mitigate TBML risks

Identify documentary fraud in bills of lading, monitor high-risk goods, and detect mis-invoicing. Evaluate the consistency of each transaction against a set of red flags based on guidelines, best practices, and patterns from similar transactions (involving the same shipper, goods, etc.).

Boost operational efficiency

Eliminate the need to consult multiple systems for vessel, cargo, and counterparty data. Lestr provides a comprehensive, all-in-one solution for transaction monitoring.

Enhance collaboration

Generate a tamper-proof audit trail with a single click. Manage all your transactions from one centralised platform. Apply the four-eyes principle through a clear and transparent escalation management process.

"The value added by the solution is in time saved. Since the time needed to perform controls is divided by five - reduced to 10 minutes, this is on top of the increased transparency for the customer."
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Béatrice COLLOT
Head of Global Trade and Receivable Finance at HSBC France

"We are excited to partner with Lestr, whose expertise in Trade Compliance and Data Intelligence aligns with our goal of driving innovation within our Trade Finance activities. This collaboration marks a significant step forward in ensuring our operations are both compliant and efficient."

Fred DONS
Head Structured Finance at ARIA Commodities

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