Bank payment obligation (BPO) is a class of settlement solution in international supply chain finance.
The solution is championed by SWIFT and the International Chamber of Commerce (ICC) Banking Commission as a means to move away from letter of credit schemes toward “support[ing] the development of a globally accepted standardised environment and establishment of the BPO as a neutral industry-wide practice”.
The International Chamber of Commerce (Banking Commission) Bank Payments Obligation Working Group (ICC-BPO) held its first meeting in Zurich, Switzerland in March 2011 with the participation of nine banks. The ICC Banking Commission and SWIFT developed the Uniform Rules for Bank Payment Obligations (URBPO), which were launched on 24 June 2013.
- ^“Dubai Chamber and ICC regional launch of BPO rules”. ICC. 24 June 2013. Archived from the original on 10 November 2014. Retrieved 10 November 2014.