Best Trade Solution

Hi Friends.

Today I received an MT720 from Bank A. It is issued by Bank B but not confirmed by Bank A. The problem is that the second beneficiary located in another country and advise through bank in MT720 is Bank C in the same country with the second beneficiary. How can I advise this LC to Bank C? Which swift format is proper MT710 or else?

thanks for your helps

dear navi,

your case is not very uncommon. in fact i often use UK banks to advise LCs to some EU countries. i think your confusion is around the transferable letter of credit. right? first, you are merely an advising bank, possibly not even a nominated bank. so your job is to advise the credit to the beneficiary using bank C; the second advising bank concept from UCP.

about the swift, SWIFT handbook define 710 as

MT 710 Scope
This message is sent by an advising bank, which has received a documentary credit from the issuing bank or the non-bank issuer, to the bank advising the beneficiary or another advising bank.It is used to advise the Receiver about the terms and conditions of a documentary credit.

MT 720 Scope
When a beneficiary has requested the transfer of a documentary credit - originally issued by a bank or a non-bank- to a second beneficiary, this message is sent by the bank authorised to advise the transfer of the documentary credit, to the bank advising the second beneficiary. It is used to advise the Receiver about the terms and conditions of the transferred documentary credit, or part thereof.

since 720 is specifically for transferring bank to advising bank, i think you should go for MT 710.

hope that will help.

regd

shahriar

Thanks very much shahriar for your helps...
.
MT710 seems to fit better but there are two other banks, "issuing bank of the original LC" and "the transfering bank". If MT710 used, then I think 52A should show issuing bank and transfering bank can be stated in 47A. I can find no other choice.

dear navi,

i think i will put that information on 72 rather since 47a falls under terms and conditions. but i agree that this is a problem and a problem for which swift dont have a solution.

regards

shahriar