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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.