Letter of credit requires credit report
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nura
- Posts: 16
- Joined: Fri Jan 30, 2009 12:25 pm
Letter of credit requires credit report
just today we have received a letter of credit. it has a condition in swift field 46a asking for a credit report from the negotiating bank. my bank is confused with the clause. they said they cant give it and said that its mandatory since its in 46a. some of them though said that its not a binding condition since issuing bank cannot push the nominated bank.
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
reasons
Hi Pal,
I think that due to Compliance in the banks, an issuing(paying) bank could have liability as per KYC, Patriot Act etc. But some reports must be request or checked before issuing an l/c. Yiu have naturally clarified with the banks involved. I dare say that, at the end; you could present your bank letter stating "Credit report-we certify have relationship with l/c beneficiary" that could be enough!!!
other comments appreciated
Ciao
I think that due to Compliance in the banks, an issuing(paying) bank could have liability as per KYC, Patriot Act etc. But some reports must be request or checked before issuing an l/c. Yiu have naturally clarified with the banks involved. I dare say that, at the end; you could present your bank letter stating "Credit report-we certify have relationship with l/c beneficiary" that could be enough!!!
other comments appreciated
Ciao
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bdesh
- Posts: 56
- Joined: Sat Jun 20, 2009 3:01 pm
- First Name: Hafizur
- Last Name: Rahman
- Organization: Southeast Bank Ltd
- Filter: Two Plus Two =: 4
- Location: Dhaka
Credit Report
Hi,
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Yes, its mandatory since its in 46a. However if they (negotiating bank) cant give it, the beneficiary should contact with the applicant for suitable amendment.
.
Regards.
.
Yes, its mandatory since its in 46a. However if they (negotiating bank) cant give it, the beneficiary should contact with the applicant for suitable amendment.
.
Regards.