News

Facilitating LC presentations over SWIFT

16/04/2020

Last year, SWIFT undertook a Proof of Value exercise with JPMorgan and DBS using FileAct and MT759 to help facilitate LC presentation, notify of the documents arrival, and link the documents to the associated LC. SWIFT believe that other customers might be able to use these tools to overcome hurdles they’re facing in these extraordinary times.

Fee free 

In recognition of the exceptional circumstances, SWIFT will support the trade community by providing FileAct and MT759 messages free of charge to help expedite LC document presentation for the next 6 months. These will enable banks and SWIFT-connected corporates to move LC documentation electronically, quickly, safely and reliably during pandemic restrictions. 

While SWIFT’s solution will not resolve all the complexities associated with digitizing trade, they hope that it will go some way to help.

Global reach and scale 

The SWIFT platform facilitates over 170 million FileActs per year across over 123 countries – with reach into more.

Thousands of BICs are subscribed to FileAct and for those that aren’t they can sign up for free using a form on SWIFT.com

Connecting the end to end transaction 

SWIFT advise use of the MT759 alongside FileAct to help the community to both notify of, and link, the documents associated with the Letter of Credit. 

Solution leverages existing security, resiliency and reliability 

Secure file transfer: authentication, confidentiality and built in integrity controls

Maximum file size: Up to 2 GB per exchanged file.

Role-based access control: allows participants to control who in their institution can access the application

Operational Efficiency: Store & Forward: the sender and the receiver can operate independently

The new implementation guide - for facilitating LC presentation over SWIFT -   has now been published on SWIFT Knowledge Centre:

https://www2.swift.com/knowledgecentre/products/SWIFT%20for%20Trade%20Finance

However, it is available to SWIFT customers only (i.e., log in required). 

SWIFT also has a directory listing the participants to the SWIFTNet service, which is available via www.swift.com

 


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Latest Question

A credit required: “1 COPY OF APPL'S CERTIFICATE OF CONFIRMATION OF THE AMOUNT TO BE PAID (THE REMAINING CLAIMING AMOUNT). THE REMAINING CLAIMING AMOUNT IS THE DIFFERENCE BETWEEN THE FINAL PURCHASE PRICE AMOUNT AND EIGHTY PERCENT (80%) INVOICE AMOUNT OF THE PROVISIONAL INVOICE. WITHIN FIVE (05) BUSINESS DAYS AFTER THE RECEIPT OF COPY OF FINAL INVOICE FROM THE BENEFICIARY THROUGH ELECTRONIC MAIL, THE APPLICANT SHALL SEND COPY OF APPLICANT'S CERTIFICATE OF CONFIRMATION OF DRAWING CERTIFYING THAT THE DRAWING AMOUNT IS IN ORDER. IN THE EVENT THAT APPLICANT'S CERTIFICATE OF CONFIRMATION IS NOT RECEIVED WITHIN ABOVE MENTIONED TIME, THE BENEFICIARY SHALL PRESENT 20% LC DOCUMENT AGAINST DISCHARGE PORT DOCUMENTS WITHOUT APPLICANT'S CERTIFICATE OF CONFIRMATION OF DRAWING.” Beneficiary presented their confirmation with amount to be paid being the difference between the final purchase price amount and 80% invoice amount of the provisional invoice. Can issuing bank raise a discrepancy of: 1. Certificate of confirmation not issued by the applicant as LC required or 2. Unpresentation 1 copy of applicant’s certificate of confirmation unpresentation. Because issuing bank received applicant’s confirmation that amount to be paid differs with amount to be paid by beneficiary (applicant showed deduction which is not mention under LC) plus applicant provided proof that applicant sent email to beneficiary within 5 banking days as LC required and amount to be paid. Whether or not applicant is protected by any terms or conditions of UCP, ISBP or ICC opinions,… because they presented applicant’s confirmation to beneficiary but beneficiary did not present applicant's document under their presentation?