Beneficiary Account Number In The Letter Of Credit

[Finance]

In some instances our clients request that we put the beneficiary account number in the letter of credit that we issue

In other cases, we have been told that beneficiary's bank will reject any letter of credit with beneficiary account number included.

This second scenario is sounds very strange to us. Has anyone else encountered banks that refuse to handle a letter of credit with an account number for the beneficiary included in the lc text? Is there any regulation in any country that prohibits the inclusion of a beneficiary account number in a letter of credit?

Any information would be appreciated.

Thank you in advance for your assistance.

[Navi]

Hi,

We sometimes include account number of the beneficiary in the LC but none refused so far. The account number may help advising bank to find out more details about beneficiary easily if that account held with that bank. For that reason it must be preferable for beneciary's bank. Moreover, addition of that number has no harm to the bank. Maybe inclusion of that number (if that account not held with themselves) cause the receiving bank that the LC not belong to themselves and should not advise etc. I cannot find any other reason.

[gegeeee]

Hy,


In some cases we also put account number in original LC. We also did not encouter any problem till now.

Best

[abrar]

The practice of inserting the account number in the beneficiary details filed tag is simply for ease of application and onward advice at beneficiary bank's end. It supposes that the account number belongs to the beneficiary at the nominated advising bank. It has no other connotations or purpose. If the account number does not belong to the beneficiary at that bank, the advising bank may simply disregard it.