A client ordered a licensing SBLC, we are ready to option No 3 and ready to make the deposit of the 2.5% in IOLTA escrow, for registration and send first the 799 Pre-advice.
RMG: Ok, is your bank going to receive the 799/760, and give you support and undertake to pay the balance?
Client: No, we have a funder/monetizer, kindly send directly to the funder Bank account.
RMG: Then you need to nominate a new Beneficiary, moreover, and that new Beneficiary needs to give respond with 799 undertake to pay the balance on your behalf, please provide their full CIS.
Client: we agree, send us the Term Sheet and Escrow agreement.
At this point, all going well, the client sign the term sheet and escrow agreement and do the wire deposit, and submitted the nominate a new Beneficiary agreement.
We have registered the transaction with HSBC UK as issuing bank with our investor’s liquid assets, after the bank did their DD, the bank found out the receiver account on Third-Party account holder, and the bank asked us, do you have an agreement with this Third-Party account holder there’s AML issues, we said no, please wait to get advise on that meter.
We asked the client what is the rule of that Third-Party account holder and if there is an agreement with that corporate.
After our DD, we found out, that the Third-Party account holder is the funder, and they give loan agreement to the new Beneficiary with LTV 90%, and that new Beneficiary gives out LTV 80% loan to the client, therefore, we asked CIS of Third-Party account holder and to sign an obligation and undertake of the balance payment and to return the SBLC 15 days before maturity.
The Third-Party account holder agreed to our conditions, subject that the new Beneficiary nominates the Third-Party account holder as new Beneficiary will do credit insurance to cover the risk.