Advising LCs to Beneficiary who's non-customer

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Advising LCs to Beneficiary who's non-customer

Post by Stas »

Is it possible that the advising bank advises LC to a non-customer? i.e. Beneficiary is not a customer of the advise through bank/advising bank. no account/no relationship w/ advising bank.
If yes, then why?
And if no, then why?
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Re: Advising LCs to Beneficiary who's non-customer

Post by picant »

Hi Pal,

from UCP point of view no hamper but AML KYC etc will make it difficult.
Second question: beneficiary has no bank account, if the issuing bank has not relationship with the beneficiary bank mauìy use the advising through bank. If the bank is in a Red Flag Country ....
I have a recent experience, the issuing bank quoted no advising bank, we contacted the beneficiary that give us the name of one bank, after sending the l/c we receive a message stating that the beneficiary refused the l/c. Moreover we receive a further instruction to pass via another bank. Today the credit has been received 8 amendments, causing costs (commissions for us) etc.
We had to effect enhanced due diligence to the parties involved too.
Other comments appreciated-ciao
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