Why do banks require additional documentation for certain international transactions?

I totally get why you're frustrated with the delays and lost revenue - it can be really tough to navigate the complexities of international transactions. From what I've learned, banks do require additional documentation for certain international transactions, and it's largely due to anti-money laundering (AML) regulations and Know Your Customer (KYC) laws. These regulations are in place to prevent illicit activities like money laundering and terrorist financing, so banks need to verify the identity of their customers and ensure that transactions are legitimate.

I can imagine how challenging it must be to deal with the extra paperwork and delays, especially when you're trying to get handmade crafts to customers in other countries. It's not just about AML regulations, though - banks also need to comply with sanctions and export control laws, which can vary depending on the countries involved in the transaction. This is why they might ask for additional documentation, like commercial invoices, bills of lading, or certificates of origin, to ensure that the transaction is legitimate and compliant with all relevant laws.

If you're looking for ways to navigate this process more efficiently, I'd recommend checking out the International Chamber of Commerce (ICC) website, which has some great resources on trade finance and international trade regulations. You might also want to consider working with a trade finance specialist or a logistics company that has experience with international transactions - they can help you navigate the complexities and ensure that you're complying with all the relevant regulations. I hope this helps, and I wish you and the small business owner all the best in getting those handmade crafts to customers around the world!

One last thing - you might also want to reach out to your bank's trade finance department to see if they can provide any guidance or support to help streamline the process. They may have some specific requirements or recommendations for international transactions, and it's always a good idea to build a relationship with your bank's trade finance team. I hope this helps, and please let me know if you have any other questions or if there's anything else I can do to help!