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Information for clients regarding risk factors in trade finance transactions


Information for clients regarding risk factors in trade finance transactions

Dear clients,

We remind you to pay attention to the risk factors in trade finance transactions. 

Always be on the lookout for Letters of Credit from unknown institutions subject to rules other than UCP latest version. Although counterfeiting of Letters of Credit is relatively rare (e.g. receiving Letters of Credit from abroad by courier directly to the address of the beneficiary), we emphasize that usually Letters of Credit are sent via an advising/confirming bank via an authentic SWIFT message. 

Letter of Intent/Indemnity as well as RWA (READY WILLING ABLE) opinions should also be avoided.

Also, please note that UniCredit Bulbank does not issue Letters of Credit with collateral other received Letters of Credit (back-to-back L/C).

We remind you to be on the lookout for common misleading terminology in case of false bank Guarantees.

The reference to various types of SWIFT messages (e.g. MT760, MT103, etc.) is a reason to doubt the veracity of the Guarantee. The explicit announcement of the Guarantee as Irrevocable, Divisible, Freely transferable, Assignable, Confirmed, as well as the simultaneous subordination of different types of rules (e.g. URDG 458, URDG 758, UCP 500/600).

The existence of conditions such as 'without presentation to us' or 'prolongation for one year possible' also constitute questionable practices.

We hope that the information provided was useful. In case of fluctuations or need additional information, you can address UsbefGjobodfBewjtpszAVojDsfejuHspvq/Ch.

Kind regards,

Тhe team of UniCredit Bulbank