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5 . Know the requirements for establishing bank relationships and allow realistic lead-time for account opening . Work with a bank that can help you open accounts and set up account structures . Opening offshore accounts is complicated and will take time . Be prepared to provide documentation required by the bank and local authorities . Assign a point person to oversee the account opening process . Incorporate your banking policy into the banking resolutions for offshore entities .
6 . Establish payment / receipts services that reflect local practices . Implement payment policies through the use of transaction limits , multiple approvals , and other control mechanisms . Be sure that information reporting can be provided in formats compatible with your domestic corporate treasury systems .
7 . Use trade products to control risks of doing business with foreign trading partners . When selling to foreign trading partners , consider using letters of credit or documentary collections rather than open accounts . If you are buying and face similar exposures , consider using letter of credits to ensure that payment will not be made until you have proper shipping documentation .
8 . Set foreign exchange policy that clearly defines the exposures you want to control , hedging objectives and instruments , and authorities , responsibilities , and controls . Develop treasury systems that help control natural offsets . Pay particular attention to cross-border payment flows , intercompany payments , currency conversions , and repatriation of profits to the parent firm .