Dear colleagues-
Pls provide an opinion of the following situation:
As per principal's instructions, we sent a documentary collection to a bank X. Receved acknowledgement in return.
After some time period on our request of status update, bank X replied, that collection was forwd to bank Y as per drawee's instructions and, as the drawee is not their customer, the file is closed...
No further information, no references, no data provided. Nothing.
How is this possible and to which article of URC522 this relates? Is this in compliance with URC522?
What should be our next steps in this regard?
Thank You in advance,
Vita
Collecting Bank Fwd Docs To Other Bank
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VITA
- Posts: 6
- Joined: Mon Mar 18, 2013 9:35 pm
- First Name: VITA
- Last Name: LAZDINA
- Organization: BANK
- Filter: Two Plus Two =: 4
- Location: Latvia
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
URC 522
Hi Pal,
usually the principal indicates to the remitting bank, the name of the collecting bank.
Nowadays, due to AML, KYC and other rules, some banks avoid to send directly documents to the collecting bank, not correspondent, but they prefer to forward documents to correspondent banks in the drawee's Country. Furtherly the correspondent bank will send documents to the presenting bank.
URC 522 have excluded some bank responsabilities , if banks act in this way.
.
URC 522 art 5 d) e) f) + art 11 a) b) c).
Please ask for documentation exchanged between bank X and bank Y, then investigate if the goods have been already delivered etc.
Having no idea of the Countries involved, I cannot say anymore.
Other comments appreciated
Ciao
usually the principal indicates to the remitting bank, the name of the collecting bank.
Nowadays, due to AML, KYC and other rules, some banks avoid to send directly documents to the collecting bank, not correspondent, but they prefer to forward documents to correspondent banks in the drawee's Country. Furtherly the correspondent bank will send documents to the presenting bank.
URC 522 have excluded some bank responsabilities , if banks act in this way.
.
URC 522 art 5 d) e) f) + art 11 a) b) c).
Please ask for documentation exchanged between bank X and bank Y, then investigate if the goods have been already delivered etc.
Having no idea of the Countries involved, I cannot say anymore.
Other comments appreciated
Ciao