Monetization or Discount Instruments funding program: This is complex and requires a great deal of experience and skill. In general, between banking regulatory processes, compliance with stringent conditions: anti-money laundering(AML), compliance, Basel 3 requirements and more.
Contracted to carry out the transfer of the financial instrument is made only through electronic systems for secure banking system (Swift). Any attempt to contract a different way than is invalid and turn “red lights”. In addition, the law requires reporting to the proper authorities.
The types of Instruments can utilize Monetize/Discount is:
The settlement Based on Delivery Versus Payment – (DVP)
- Bank Guarantee (BG) – ICC URDG 758.
- Standby Letter of Credit (SBLC) – ICC UCP 600.
- Bank Draft via Swift MT110.
- Certificate of Deposit (CD).
- MTN – Medium Terms Notes.
- Sovereign Guarantee.
- Power Purchase Agreement (PPA).
- Additionally, there are further possible agreements to utilize such as BOT, PPP.
In order to get an offer to Monetize/Discount Instruments, the following documents need to be submitted for review and due diligence:
- Application/Letter of Request.
- KYC on Corporations letterhead.
- Verbiage/Specimen of Instrument/Securities.
- RWA – ATV of the Instrument/Securities.
Once the full package submitted, the R.M.G Capital Compliance to review, within about five business days, on green lite and decided to continue the process, the client accepts the offer of funding, the procedure, and schedules for performance.
- The funder responds with a delivery of a non-binding Term Sheet.
- After the client reviewed the Term Sheet and shared with his bank, which must be signed and if possible stamped as “Acknowledgment” by the bank.
- The process is bank to bank basis (DVP settlement).
*** In heaven forbid which were allegedly forging documents or attempt of fraud, the company is obligated under law to notify the authorities, which could result in a criminal investigation as well as entry to the blacklist.