Can the Second Confirming Bank Claim from the First Confirming Bank? Intro In practice, some letters of credit carry dual confirmation — one by the confirming bank nominated by the issuing bank, and another by a local bank in the beneficiary’s country. While this arrangement may look like extra protection, it can also create confusion over reimbursement responsibilities if the chain of document presentation is broken. The following case raises a … Read More
Can the Collecting Bank Release the Documents to the Buyer after Sending Advice of Non-Payment? ________ In documentary collections, things don’t always go as planned. Sometimes the buyer initially refuses to pay under a Documents against Payment (D/P) collection, only to come back the next day ready to settle and collect the goods. But what if, by then, the collecting bank has already reported the buyer’s refusal and is waiting for the remitting bank’s instructions? … Read More
When “All Originals” Really Means All Originals — Insurance Policies under LC In documentary credit practice, few phrases cause as much confusion as “all originals must be presented.” This Q&A looks at what happens when an insurance policy under LC says “3 originals issued” — and why missing even one can turn a clean presentation into a discrepancy. QUESTION Dear Mr. Old Man, We issued an LC with a condition that one … Read More
When the LC beneficiary is a “sister company” in Singapore: How can Bank V remain the presenting bank? Intro In international trade, it’s becoming increasingly common for exporters to restructure their transaction models through a “sister company” abroad — often to optimize payment flows or take advantage of tax and logistics benefits. However, when a Letter of Credit (LC) is involved, this change can create uncertainty for the bank in Vietnam: can it still examine and present the … Read More
When a Shipping Line Requests a General Average Deposit – What Documents Should the Bank Require for the Transfer? Intro In maritime transport, when a General Average (GA) situation occurs, the shipowner often requires cargo owners to contribute or advance a sum of money as security for their share of the loss. So, if a customer wishes to remit such a deposit through the bank, what documents must be collected to comply with foreign exchange regulations? The following question … Read More
Khi hãng tàu yêu cầu đặt cọc tổn thất chung – ngân hàng cần hồ sơ gì để chuyển tiền? Intro Trong vận tải biển, khi xảy ra “tổn thất chung” (General Average), chủ tàu thường yêu cầu các chủ hàng phải đóng góp hoặc tạm ứng một khoản tiền để bảo đảm phần trách nhiệm của mình. Vậy nếu khách hàng muốn chuyển khoản đặt cọc này qua ngân hàng, thì cần nộp những chứng từ gì để tuân … Read More
Sanctions vs. Honour: What If the LC Has No Sanctions Clause? Intro In today’s trade finance world, sanctions compliance has become a minefield. Banks may find themselves caught between UCP obligations on one side and sanctions laws on the other. A recently raised a thought-provoking question — what if the LC itself says nothing about sanctions, yet the documents reveal shipment from a sanctioned port or on a sanctioned vessel? Here’s … Read More
Khi người hưởng LC là công ty “chị em” ở Singapore: Làm thế nào để Bank V trở thành ngân hàng xuất trình? Intro: Trong hoạt động xuất nhập khẩu, việc các doanh nghiệp tái cấu trúc mô hình giao dịch thông qua công ty “chị em” ở nước ngoài ngày càng phổ biến — đặc biệt khi muốn tối ưu hóa quy trình thanh toán hoặc tận dụng lợi thế về thuế và logistics. Tuy nhiên, khi liên quan đến thư tín … Read More
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 … Read More
When the LC Calls for a Delivery Order under Ex-Works — What’s the Catch? Intro: Some LCs can look perfectly fine on paper — until you notice a small but crucial detail that could turn the whole deal upside down. In this case, it’s an Ex-Works shipment tied to a Delivery Order (D/O) instead of a Bill of Lading. Sounds harmless? Not quite. Let’s unpack it. _______ Question: Dear Mr. Old Man, Greetings. Hope … Read More