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Dear Expert,
I need expert advice. I would like to share my recent experience. We have opened a transferable LC and bank want to add an additional clause 47. (13)

"THIS LC IS IRREVOCABLE AND TRANSFERABLE. XYZ BANK, CHINA IS NOMINATED AS THE TRANSFERING BANK. IF THE LC IS TRANSFERRED TO 2ND BENEFICIARY THE TRANSFERING BANK MUST INFORM THE ISSUING BANK WITH THE FOLLOWING DETAILS: NAME AND ADDRESS OF THE 2ND BENEFICIARY, THE VALUE TRANSFERRED WITHIN THE FOLLOWING BANKING DAYS OF TRANSFER THROUGH AUTHENTICATED SWIFT MESSAGE QUOTING OUR LC NUMBER."

I didn't find anything in UCP 600 that 2nd beneficiary details must be shared with the issuing bank. Are there any rules in ISBP?

Thanks,
Shakil

Hi Pal,

IMHO, disclosure is not mandatory as per UCP 600, but due to compliance, AML, CT, KYC etc Banks may
require such action. However the issuing bank should not inform applicant about these data.
Other comments appreciated
Ciao