If you’ve ever drafted a cross-border payment instruction and had a compliance officer bounce it back because you used the word “proceed” incorrectly, you know how a single word can disrupt an entire transaction. This article unpacks the practical pitfalls of using “proceed” in financial and trade finance contexts, especially for non-native English speakers. We’ll look at real-world examples, compare compliance standards across major jurisdictions, and share some hands-on stories (including my own gaffes) on why precise wording matters so much in international finance.
In the world of finance, especially in international trade, "proceed" is not just a fancy synonym for "continue." It often comes up in documentation, SWIFT payment instructions, letters of credit, and regulatory filings. And here’s the kicker—using it incorrectly can trigger compliance red flags, delay settlements, or even cause regulators to scrutinize your entire operation.
I remember a 2022 payment for a client in Singapore where the instruction read, “Please proceed the funds to the beneficiary.” Sounds harmless, right? Except the compliance team flagged it: was this a request to pay, or an indication that KYC (Know Your Customer) checks had been completed? Turns out, in financial English, “proceed” is rarely used as a verb meaning “to send money.” More on that in a minute.
Here’s one from my own practice: I was helping a European client remit funds to a supplier in Brazil. The payment instruction said, “Bank is authorized to proceed the funds after invoice verification.” The Brazilian bank returned the instruction, noting that “proceed” was unclear—did we mean “process,” “release,” or “transfer”? Delayed the transaction by a week. Lesson learned: Always use “process” or “transfer” for clarity.
To show this isn’t just my experience, here’s a snippet from a Trade Finance Global industry forum:
“We see ‘proceed’ misapplied in payment instructions all the time, especially from clients in East Asia. It creates ambiguity in letters of credit and can freeze a transaction pending clarification.” — Senior Trade Finance Officer, HSBC (2023)
The ICC UCP 600 (the gold standard for letters of credit) never uses “proceed” to mean “send funds”—it sticks with “honour,” “negotiate,” “pay,” or “process.” Similarly, the SWIFT message types for bank payments require specific verbs: “credit,” “debit,” “transfer,” etc.
| Country/Region | Standard Name | Legal Basis | Enforcement Agency |
|---|---|---|---|
| United States | UCC Article 5 / Verified Trade | Uniform Commercial Code (UCC) | U.S. Department of Commerce, USTR |
| European Union | EU Customs Code / Authorised Economic Operator (AEO) | EU Regulation 952/2013 | European Commission, DG TAXUD |
| China | Verified Trade Declaration | Customs Law of PRC | General Administration of Customs of China |
| Japan | Certified Exporter Scheme | Customs Law, Article 70 | Japan Customs |
I once interviewed an AML compliance officer at a global bank (who preferred to remain anonymous). She said, “About 10% of our rejected payment instructions from Asia-Pacific clients are due to ambiguous verbs like ‘proceed.’ If you want to avoid regulatory headaches, stick to the verbs listed in the ISO 20022 payment standards.”
In financial communications, especially when money and international trade are on the line, clarity is king. My own mistakes with “proceed” have taught me to be precise—and to always check the relevant regulatory language before submitting anything. If you work with cross-border payments or international trade, take thirty seconds to re-read your instructions for ambiguity. It might just save you hours of compliance headaches or, worse, a failed transaction.
For further clarity, always refer to the primary legal and regulatory sources—such as the ICC UCP 600, FATF recommendations, and your local regulator’s guidance. And don’t hesitate to ask your compliance team—no one ever got fired for double-checking regulatory language.
If you’re unsure about the terminology in your next financial document, take a moment to review the relevant standards or consult with a trusted colleague. Over time, you’ll develop an instinct for the language that keeps money—and business—flowing smoothly.