BG Models (Bank Guarantee)
The Investor Offices and those of their collaborators are regulated and supervised by the International Monetary Authorities, the FED, IMF and the ECB for the development of “private investment”. The Bank Guarantee issuance Model will be the one that the Bank considers appropriate, given the conditions to which the client gives preference, because it is the issuing Bank that has the different types of models for each case. The basic requirements that the Bank Guarantee must meet are the following:
- The asset must be in the client’s account, with FULL BANK RESPONSIBILITY
- The asset must be fully available to the customer
- The asset must be ASSIGNABLE, NEGOTIABLE, DIVISIBLE AND TRANSFERABLE
- The asset must be viable via SWIFT (MT760 and MT700)
- The asset must be verified from BANK TO BANK
Some examples of BG models:
BG (Bank Guarantee) ICC Model. 458BG (Bank Guarantee)
BG BG ICC Model. 500/600 Last edition (758)
SBLC (Stand by Letter of Credit)
The SBLC model will depend on the agreement reached with the recipient. Therefore, under the agreement, the issuing bank issues an SBLC for the beneficiary based on the asset that the customer has provided. The SBLC model should always be established according to the rules of ICC Publ. 500 / 600. It is important to point out that to issue an SBLC instrument and use it as collateral; it must be Negotiable, Assignable, Divisible and Transferable.
POF (Proof of funds)
A POF, also known as a Proof of Funds, is nothing more than a bank document that certifies the client’s funds. This type of document is valid for three business days. This POF must be signed by two bank officials and stamped by the Bank, in addition to indicating that the cash is good, clear, and clean and of non-criminal origin.
CD (Certificate of Deposit)
These must meet the same requirements and conditions as any other asset.
• Must be placed in the client’s account with FULL BANK RESPONSIBILITY
• Must be negotiable, assignable, divisible and transferable
Others: LOI (Letter of Intent)
LLOI, also known as a “Letter of Intent”, is a formal letter in which the client provides and declares her intention to access a private investment.
Authorization to verify and authenticate ATV
This authorization is intended for the Investment Manager so that the asset verification can be carried out successfully. For such authorization to be completed successfully, it must include the names, surnames, and telephone numbers of the Bank’s officials, as well as their identification number. The COPIES must be delivered so that they do not waste time when the verification takes place by the Investor’s Bank.
RWA Letter: Ready, Willing and Able
DocumentBank ratification document and essential in the final stages of the administrative procedure. With this document, the bank confirms:
* The asset is good, clear, clean and of non-criminal origin
* The asset does not have any type of external load*
* The asset can be confirmed via SWIFT MT799 – MT760
* Must be signed by two bank officials and stamped by the Bank. With this document, the Bank accepts the issuance of Swift MT-760 when the client requests it and at the coordinates that the client must indicate
CIS (Customer Information Sheet) / KYC
The customer information sheet is the document that identifies the customer with all their data. This document will be essential to present the transaction at the Investor’s office and, therefore, initiate a «Diligence» process. It is also accepted as KYC (KNOW YOUR CUSTOMER), it has a similar function.
Basic rules to participate in a private investment
1. The client’s bank must be rated in the top 50 in the world.
2. The two options available to access a private investment are:
- Any of the following financial instruments: BG (Bank Guarantee), CD (Certificate of Deposit), MTN (Medium-Term Banknotes), SBLC (Stand by Letter of Credit), SKR (Custody Receipt). These instruments must have FULL BANK LIABILITY on the part of the issuing bank. If the bank is not strong enough to stand on its own, you can try to get a bank that takes full bank responsibility for the bank asset. If the client is not the direct owner of the asset or the funds, she cannot make any investment unless it is assigned to the bank account where the asset or instrument is located.
The asset will be blocked for the time estimated in the contract. Therefore, before being locked out, your asset must have a reasonable life cycle (expiration date) that it can work with.
The bank must be able to lock the assets through a SWIFT MT-760.
If the asset is gold, Hallmark documents must be provided.