MT760/MT799 Fraud

MT760/MT799 Fraud

MT-760 has rapidly become one of the leading providers of Standby Letters of Credit (SBLC) in the nation. The minimum SBLC offered is $200,000, though typically, requests below $5 million are uncommon.

SBLC Services

While the term “leasing” is often used, actual instrument leasing is not feasible as no bank allows such transactions. Instead, a third-party can trigger the issuance of an instrument on a client’s behalf. We use our assets to have a bank issue an SBLC for the client in exchange for equity, collateral, or a joint venture. This arrangement varies based on the client’s funding needs. The maximum SBLC offered is $500 million.

For real estate developers and project managers in the current credit market, an SBLC can serve as secondary collateral, activated only in case of borrower default after the primary lender has exhausted all normal remedies, such as foreclosure. At that point, the bank or investor issuing the SBLC will cover any shortfall.

General Details

All SBLC instruments issued are on a 12-month basis, with fees charged annually. They are delivered via the SWIFT MT-760 protocol. The corporate envelope MT-798 protocol is used for corporate-issued SBLC instruments, with terms varying from 90 days to 12 months based on client needs. We customize the SWIFT message text to suit each transaction. Interest rates are annual, and payments are negotiable.

These instruments are available for “leasing” with or without pre-advice operations from a major international bank. Applicants must be knowledgeable about using such bank instruments as we do not provide educational guidance. Applicants may assign usage rights but cannot sell or pledge the instrument without written permission from both WN Funding and the issuing bank.

Customization & Usage

Each situation is unique, so we make decisions on a case-by-case basis. In some scenarios, we or our partners may issue an instrument that can be cashed or called on demand (typically used as loan collateral). This SBLC will be fully cash-backed and unencumbered, issued for the client’s or lender’s benefit in exchange for collateral or a joint venture.

In other scenarios, the SBLC is issued for credit enhancement purposes, not for cashing or calling, and cannot be used to deceive or defraud a bank. Clients must be honest about the instrument’s origin. While some uses of leased SBLCs are legitimate and legal, many are unethical and fraudulent, which we do not support.

If you need approval for a large loan or to enter a trading program requiring an SBLC, we can help. The SBLC provided may serve as secondary collateral for a loan, allowing the primary lender to issue the required funds. We can provide these in exchange for an equity or collateral position and have credit facilities and private lenders who can fund your needs.

Glossary

• LCPI: Preliminary underwriter for the lender, providing the SBLC.
• ACI: Affiliated partner and representative for LCPI.
• Collateral: Primary is the project itself; secondary may be a BG, CD, SBLC, Bond, or cash.
• Commitment Fee: Required at commitment letter execution, used for due diligence or as a good faith deposit.
• Commitment Letter: Lender’s commitment to fund the project as per the term sheet.
• Escrow Agent: Controls the escrow accounts for fees, SBLC issuance, and loan proceeds.
• Legal: Lender’s legal agent for issuing terms, commitment letters, final loan documents, and servicing.
• Lender: Funding source for the project.
• Loan Fees: 5%-10% of the funding amount, excluding developer/project-side broker/agent fees.
• POF: Proof of Funds showing financial capability.
• POP: Proof of Product confirming product availability.
• SBLC: Stand By Letter of Credit, used as collateral enhancement.
• SBLC Provider: Supplies SBLC for lease as secondary collateral.
• Security Instrument: BG, CD, SBLC, or Bond.
• Servicing Agent: Receives note repayment payments.
• Term Sheet: Preliminary terms and conditions for project funding.
• Underwriting: Assessment of the project’s strengths and weaknesses.
• Underwriter: Task shared by LCPI and the lender’s legal department.

Common Financial Instruments

• MT760: A SWIFT message indicating blocked funds for the beneficiary bank.
• MT799: A bank-to-bank text message confirming funds on deposit.
• MT103: Used mainly for transferring funds between banks.
• Advance Payment Bond: Refunds a buyer’s advance payment if the exporter fails to fulfill obligations.
• BG: Bank Guarantee used as collateral enhancement.
• Performance Bond: Guarantees satisfactory project completion by a contractor.
• SKR: Safe Keeping Receipt providing security over assets.
• CD: Certificate of Deposit confirming bank-held assets.

Notes for the Financial Instruments Provider Group

This group is for professionals requiring financial instruments, trade finance, and sophisticated financial solutions. It is intended for those expanding business credit lines or trading capacity.

Warning to Brokers

Clients who do not understand their business sufficiently will be removed. Offers mentioning MT103/23 will be removed, and the user banned. Report any legally questionable or fraudulent offers to the moderator.

For more information or to discuss your specific needs, please contact us. We will tailor a solution to meet your requirements.