Highlights and Procedures Regarding Our Proof of Funds Services
1- OUR COLLATERAL PROVIDING SOURCE, THRU ONE OF THEIR TOP SENDING
BANKS, ISSUES THE FINANCIAL INSTRUMENTS VIA SWIFTS * (* A VAST MESSAGING
SYSTEM USED BY BANKS AND OTHER FINANCIAL INSTITUTIONS , AS A SAFE,
ACCURATE & SECURE WAY TO SEND AND RECEIVE INFORMATION.)
2- THE FINANCIAL INSTRUMENTS ARE DEFINED AS THE COLLATERAL
PROVIDED…..NO “LOANS” ARE PROVIDED
3- OUR FOCUS &SPECIALIZATION IS IN PROVIDING SBLC’S, BG’S, DLC’S & BLOCKED
FUNDS
4- COMMODITY INSTRUMENTS/COLLATERAL SERVICES/CREDIT ENHANCEMENT
OBJECTIVES
(A) BANK COMFORT LETTERS ( BCL) AND PRE-ADVICES/RWA SENT VIA SWIFT MT199-
MT799
(B) BLOCKED FUNDS VIA SWIFT MT799/760
(C) SBLC’S (STANDBY LETTER OF CREDIT)- BG’S ( BANK GUARANTEES)- DLC’S
(DOCUMENTARY LETTER OF CREDIT)…MT760…MT700
5- IT IS REQUIRED THAT FOR ALL SWIFT RELATED TRANSACTIONS, WE MUST REVIEW
THE SWIFT VERBIAGE UPFRONT. THE SWIFT VERBIAGE IS TRIGGERED AND
APPROVED BY THE RECEIVING BANK WITH INPUT FROM THE COUNTERPARTIES ON
THE RECEIVING SIDE. A REVIEW OF THE VERBIAGE WILL TELL US WHAT THE
DELIVERABLE REQUIREMENTS ARE AND IF ALL IS ACCEPTABLE,WILL ALLOW US TO
FORWARD THE COST/PROCEDURE/PROTOCOLS TO THE CLIENT FOR REVIEW &
DECISION WHETHER TO MOVE FORWARD OR NOT
6- IT IS ASSUMED AND HIGHLY RECOMMENDED THAT THE CLIENT HAS CONDUCTED
THEIR DUE DILIGENCE REGARDING THE RECEIVING SIDE , IN AN EFFORT TO ENSURE
THAT SIDE WILL FULFILL THEIR END OF THE TRANSACTION. THE COLLATERAL
PROVIDING FIRM DOES NOT PERFORM DUE DILIGENCE ON THE RECEIVING
SIDE…THAT IS THE RESPONSIBILITY OF THE CLIENT.
7- THERE IS A TWO PARTY DELIVERY COLLATERAL AGREEMENT PREPARED AND
EXECUTED BETWEEN THE CLIENT AND THE COLLATERAL PROVIDING FIRM. INITIAL
COST FOR THE REQUESTED FINANCIAL INTRUMENT (S) IS TO BE WIRED TO A THIRD
PARTY PAYMASTER/ATTORNEY FIRM AS DISCLOSED IN THE ANNEX OF THE TWO
PARTY COLLATERAL AGREEMENT. THE REMAINING COST IS TO BE PAID AFTER
DELIVERY OF THE INSTRUMENT (DEPENDING ON THE TYPE OF THE UNDERLYING
TRANSACTION) WITHIN A SPECIFIED PERIOD OF TIME DISCLOSED IN THE
AGREEMENT. COMPLETE “SUCCESS FEE” TRANSACTIONS ARE NOT ACCEPTABLE. IT
SHOULD BE NOTED THAT NEITHER THE COLLATERAL PROVIDER FIRM NOR THE
CLIENT CAN MAINTAIN A LEGAL CLIENT RELATIONSHIP WITH THE RESPECTIVE
PAYMASTER/ATTORNEY, AS THAT MAY VERY WELL TRIGGER A CONFLICT OF
INTEREST.
8- ACCEPTABLE AMOUNTS FOR COLLATERAL FINANCIAL INTRUMENT
TRANSACTIONS START
AT $10MIO ( TEN MILLION EUROS) AND UP. TERMS ARE USUALLY FROM 30 DAYS TO
ONE YEAR**( **WITH AN OPTION TO RENEW)
9- TO ENSURE/VALIDATE A FULL AND COMPLETE UNDERSTANDING OF THE
TRANSACTION, THAT DURING THE PROCESS, IT IS REQUIRED THAT ARRANGEMENTS
BE MADE FOR DIRECT CONTACT BETWEEN THE COLLATERAL PROVIDING SOURCE
AND THE CLIENT********************************* Initiate a Proof of Funds Inquiry
All Client Contact Strictly Private
We understand Proof of Funds transactions and financing. That’s why you can be assured that all conversations with prospects and customers are held in the strictest of confidence.