Beware of SBLC Monetization Scams

Every now and then, banks receive strange emails promising “SBLC monetization” or “MT760 leasing deals.” They sound sophisticated, quoting SWIFT message types and big bank names—but in reality, these are well-known fraud patterns designed to lure banks or clients into sending confirmation messages that scammers later misuse.

In this week’s Q&A, Ms. Woo asks about one such suspicious request. Let’s hear what Mr. Old Man has to say

________

Question

Dear Mr. Old Man,

I have received an email sent to our bank as follows:

QUOTE

Dear …

We are planning to monetize the SBLC that we will receive, and we intend to receive the proceeds from the monetization in our account with your bank.

We will receive the SWIFT MT799 or MT760 message of the SBLC, which we are leasing into our account with your bank and subsequently transfer it to the monetizer’s account with HSBC Singapore.

In relation to the above, we would like to confirm whether your bank can transfer the SWIFT message MT799 or MT760 to the monetizer’s account.

The proposed procedure is as follows:

1. Your bank will first receive the SWIFT message MT799 or MT760.
2. Thereafter, your bank will transfer the respective SWIFT message (MT799 or MT760) to the monetizer’s receiving account with HSBC Singapore.

Furthermore, I have confirmed with our financing officer that we will share all necessary documents with you, including the DOA, Monetization Contract, and other relevant papers.

We will also provide you with the verbiage of MT760 for the SBLC at the appropriate time.

Yours faithfully,

XXX

UNQUOTE

I have not encountered such a request before in trade finance operations.

May I have your guidance and advice?

An SBLC is meant to be activated only upon the applicant’s default of payment—so how can it be “monetized”?

I am really confused.

Thank you very much.

Ms. Woo

________

Answer

Dear Ms. Woo,

I would like to draw your attention to the email in question, which requests your bank to receive and transfer SWIFT MT799 or MT760 messages related to an SBLC for so-called “monetization.”

This request bears all the hallmarks of an SBLC monetization scam. As you know, a Standby Letter of Credit (SBLC) is a trade or performance instrument, not a financial asset that can be leased, sold, or monetized. No legitimate financial institution engages in transferring or “re-routing” MT799 or MT760 messages for such purposes.

These fraudulent emails are typically designed to trick banks into sending a SWIFT confirmation (such as MT799 “ready to receive”), which scammers later misuse as false proof of funds or bank readiness in other schemes. The references to “leasing an SBLC,” “monetizer’s account,” and “HSBC Singapore” are all standard red flags commonly seen in such frauds.

I recommend that this message be reported immediately to your Compliance and Fraud Prevention units, and that no response or SWIFT communication be sent to the sender.

Please let me know if you would like me to share a brief note or reference materials on this type of SBLC-related fraud for staff awareness.

Kind regards,

Mr. Old Man