Confirming Bank Reject Payment On Internal Compliance Issue
Posted: Wed Jul 16, 2014 11:19 am
Dear Experts,
Can we reject payment to the presenter for confirmed/Clean certified documents.
Say for example. we have clean confirmed documents where we have to effect payment to presenter after 10 banking days of swift claim to issuing bank.
we will have this transaction unprocessed(nonpayment) till the last day of Pre-debit authority!!!. I have question in my mind that under what circumstances can we relieve from the position to pay to beneficiary/take advantage to relieve from the position to pay to beneficiary under confirmed LC's.
we cannot say country risk of issuing bank,solvency,political risk, war risk, risks etc. .....Do any one come across any situation like this before......Please share your opinion.
Can nego bank put compliance concern in front in order to avoid payment to the presenter(say when we(nego) bank examined the document there were no compliance concern regarding issuing bank country, port of loading and discharge countries, parties involved in the documents, now the documents in transist, recent compliance update that issuing bank country under sanction, port of loading/port of discharge under sanction.
Please share your experience here..........
Regards
Dinesh
Can we reject payment to the presenter for confirmed/Clean certified documents.
Say for example. we have clean confirmed documents where we have to effect payment to presenter after 10 banking days of swift claim to issuing bank.
we will have this transaction unprocessed(nonpayment) till the last day of Pre-debit authority!!!. I have question in my mind that under what circumstances can we relieve from the position to pay to beneficiary/take advantage to relieve from the position to pay to beneficiary under confirmed LC's.
we cannot say country risk of issuing bank,solvency,political risk, war risk, risks etc. .....Do any one come across any situation like this before......Please share your opinion.
Can nego bank put compliance concern in front in order to avoid payment to the presenter(say when we(nego) bank examined the document there were no compliance concern regarding issuing bank country, port of loading and discharge countries, parties involved in the documents, now the documents in transist, recent compliance update that issuing bank country under sanction, port of loading/port of discharge under sanction.
Please share your experience here..........
Regards
Dinesh