An escrow account is a controlled account where funds are held by a neutral third party until predefined contractual conditions are satisfied. The escrow agent may be: a bank; a licensed payment institution; a law firm; a notary; a regulated fiduciary; a specialised escrow provider. In some transactions, escrow may also be used to hold documents, shares, title instruments or other assets, not only cash.

International trade relies heavily on trust, documentation and payment security. When goods, buyers, sellers, banks and logistics chains are located in different jurisdictions, financial instruments become essential tools for reducing payment and performance risk. Letters of Credit, Standby Letters of Credit, Documentary Letters of Credit, Bank Guarantees and related instruments can provide strong protection when properly issued, verified and structured. However, they are als

n international trade, a profitable contract can quickly become a financial loss if the counterparty is not properly verified. Commodity trading, logistics, prepayment structures, deferred payment terms and cross-border documentation create multiple opportunities for fraud, misrepresentation and non-performance. Before signing a contract, issuing an invoice, making an advance payment or releasing goods, companies should conduct a structured counterparty due diligence process