In the world of letters of credit, not every favour is straightforward — especially when the clock has run out. One reader recently wrote in with a dilemma that many banks have quietly faced: Should we “help” a customer by withholding a discrepancy, even when the presentation is clearly late? It’s a question of both procedure and principle. Let’s take …

Here’s a classic case where trade logistics outpace banking procedures. A reader recently flagged an unusual LC condition: the requirement to courier part of the original bill of lading set — negotiable, no less — directly to the issuing bank within three working days of shipment. Why the rush? And what’s the logic behind splitting up the B/L set this …

Our friend TF recently shared an interesting case involving an Iraqi bank, a Jordanian issuing bank, and a confirming bank in the USA. The question raised: What happens if the applicant bank finds valid discrepancies after the confirming bank has already been reimbursed? Here’s how I answered — right after a strong espresso and a quick ride on my trade …

Having spent many years working in international payments and trade finance at a bank, and now retired, I still stay closely connected to the field. These days, I support and mentor young professionals working in banks and import-export companies. Over the past few years, I’ve felt a quiet but profound shift—AI (Artificial Intelligence) has begun knocking on the door of …

Today, Facebook reminded me of a fascinating discussion that took place 16 years ago — on 27 June 2009 — on the now-defunct DCPro forum. It revolved around a rather rare scenario: a letter of credit confirmed by two separate confirming banks. The original question came from Khalid (UAE), and the conversation included insightful responses from renowned trade finance experts …

When the contract collapses but the credit stands firm — Mr. Old Man untangles the rules, rights, and realities behind this classic trade finance dilemma. QUESTION Dear Mr. Old Man, I came to know you through the praise and recommendation of my university lecturer. And when I encountered difficulties, the first person I thought of was not ChatGPT, but your …

QUESTION Hi Mr. Old Man, I often see the place of presentation stated as the beneficiary’s country or city. But in some LCs, can the place of presentation be fixed as the importer’s city — for example, when the LC is available with the issuing bank? Thanks and regards, Hemant _____________ ANSWER Hi Hemant, It depends on the type of …

QUESTION Dear Mr. Old Man, Apologies for the delayed response, and thank you very much for your detailed explanation. Based on your clarification, I understand that in the case we discussed, it would be appropriate to raise a discrepancy for the export documents. I have a further question: Is it possible for the freight amount under a CFR Incoterm to …

A Note of Thanks – And a Little Update from Mr. Old Man Dear friends, Despite the growing number of resources and the rise of tools like ChatGPT, I’m deeply touched that so many of you—both in Vietnam and around the world—still trust me with your questions about international payments and trade finance. Thank you sincerely for your continued confidence. …

I recently received an email from a friend — a lawyer working at Hana Bank in South Korea. He explained that his bank is currently dealing with a wave of fraudulent international transfers. In these cases, hackers had intercepted email communications between businesses and altered the beneficiary’s account number in the payment instructions. As a result, tens of millions of …