As a result, the payment applicant`s instructions describe a payment in USD that will be routed through ING Bank`s correspondence bank in the United States, without reference to a Cuban payee, and therefore would probably not trigger automated warnings within the payment systems of the USD correspondence bank. On the same day, the confirmation bank sends the documents to the issuing bank. On October 20, the seller presents the documents of the advisory bank. As a rule, after a sales contract has been negotiated and buyers and sellers have agreed that a credit is used as a method of payment, the applicant will contact a bank to apply for credit. Once the exhibiting bank has assessed the credit risk of the buyer , that is: that the applicant will be able to pay for the goods – issues them accreditation, which means that it promises payment to the seller upon presentation of certain documents. Once the beneficiary (the seller) has obtained the accrediting person, he checks the conditions to ensure that he is in conformity with the contract and organizes either the shipment of the goods or requires a modification of the accrediting person so that it complies with the contractual conditions. The accrediting party is limited in time, the validity of the credit, the last date of shipment and the delay in delivery of the documents of the designated bank.  Applying the above tactics to circumvent U.S. law requires time, patience, and coordinated action by a large network of people within a major international financial institution. If much of a bank`s sale, operation, risk management, and legal advice act together to undermine the country`s sanctions, the bank`s compliance culture is tragically flawed and vulnerable to endangering ignorant shareholders, directors, and employees.
Red Clause Akkreditiv Red Clause Akkreditive provides cash to the seller prior to shipment to finance the production of the goods. The buyer`s exhibiting bank may present some or all of the money. The buyer essentially extends the financing to the seller and bears the risk for all pre-applied loans. – Citibank NA Mumbai – Mumbai, India – SWIFT: CITIINBX Although accrediting persons initially existed only in the form of paper documents, they were regularly exhibited by telegraph in the late nineteenth century and by telex in the second half of the twentieth century.  From 1973, with the creation of SWIFT, banks began to switch to electronic data exchange as a means of cost control, and in 1983 the UCP was modified to allow for the “remote transmission” of accreditors.  In the twenty-first century, the vast majority of LCs have been exhibited in electronic form and completely “paperless” computers have become increasingly common.  1. . . .