FINANCIAL INSTRUMENTS

We accept only Financial Instruments that conform to UCP500 Documentary Letters of Credit* A Documentary Letter of Credit is a guarantee of payment given by a Bank (issuing Bank) at the request of the Importer to pay the Exporter provided that the terms and conditions of the Letter of Credit are complied with. It is one of the most secure methods of payment in International Trade. If you are an Importer you will be anxious to receive the goods you have ordered and would prefer not to pay for them until they are dispatched. If you are an Exporter you will want to ensure that you receive payment for the goods you are selling. You also have the comfort of having pre-shipment protection. From the point of view of both parties, the Documentary Letter of Credit is the best way to address this. The ISSUING BANK issues the Letter of Credit and acts on behalf of the Importer. The Issuing Bank requests the ADVISING BANK (usually in the country of the exporter) to inform the Exporter that the Letter of Credit has been issued. The Advising Bank may be able to provide extra security to the exporter by adding its own guarantee to that of the Issuing Bank. This is called CONFIRMATION. The Documentary Letter of Credit operates as follows: Importer The buyer completes application and applies to his bank to issue the Credit (DLC)

Issuing Bank Opens the credit and sends it to the Exporter's Bank (Advising Bank) Advising Bank Exporter Confirming Bank Advises the seller of the credit and its terms (without any obligation on his part) The seller, in whose favour the credit operates Normally the same as the Advising Bank (i.e. adds their own Guarantee to that of the issuing Bank to pay)

The Exporter ships the goods, prepares the documents called for under the Letter of Credit and presents them to the Advising Bank. The documents are checked by the Advising Bank and sent to the Issuing Bank. Provided they are in strict compliance with the terms of the Letter of Credit the Importer collects the documentation from his bank to allow him clear his goods. The Exporter is paid at sight/maturity. Documentary Letters of Credit are issued subject to the current Uniform Customs and Practice (UCP) for Documentary Letters of Credit as issued by the International Chamber of Commerce. There is no such Instrument within UCP as a FFDLC.

Transferable Letter of Credit*

A Transferable Letter of Credit is normally used by a middle-man who is unable to supply the goods himself. He transfers a portion of the Letter of Credit received in his favour, for a lesser value to his suppliers. The supplier may also require a guarantee of payment. The difference between the two Letter of Credit values is the middle-mans profit margin. In transferring the Letter of Credit, the middle-man transfers his right to perform under the Letter of Credit to his supplier. Where the middle-man is buying from more than one supplier, he may transfer an appropriate part of the Letter of Credit to each of his suppliers. A Letter of Credit must be designated Irrevocable and Transferable and requires the agreement of the middle-mans Bank to transfer same. The Uniform Customs and Practice issued by the International Chamber of Commerce details the terms under which Banks may effect a transfer.

Standby Letters of Credit* The Standby Letter of Credit is used as an alternative to the Bond or Guarantee or Documentary Letter of Credit. It serves to secure payment in the event of non-performance of contract terms. It is governed by the Uniform Customs and Practice for Documentary Credits. It avoids the need for multiple documents. The Standby Letter of Credit is best suited where goods or services are not supplied as contracted or where the beneficiary claims non-performance of contract. Declaration by the beneficiary together with the sight drafts are the only documents normally required. Standby Letters of Credit (SLCs) are always used in the USA, where bonds and guarantees are not acceptable.

Bonds and Guarantees* The purpose of the Bond or Guarantee is to provide an independent and undoubted undertaking to pay should the Buyer fail to honour his obligation. These instruments (as they are called) differ from Documentary Letters of Credit in that generally, little or no documentation is required other than the "Demand" itself. It is important to remember that a Bond or Guarantee is a separate contract to the commercial contract between the buyer and the seller, which requires the Bank to immediately pay a correctly presented claim, irrespective of disagreements connected with the commercial contract. The only reasons for a Bank not making payment immediately would be if the Bank suspected fraud or if it was forbidden to make payment by High Court injunction. NB: These instruments are generally used between trusting parties who have been successfully transacting business for some time with an undoubted party. The parties involved: The main parties involved in guarantees and bonds in international trade are: The Supplier (otherwise known as the seller or exporter) who provides the goods or services and is normally the Beneficiary of the Guarantee or the Bond The Buyer (or Importer) is the Applicant for the guarantee The Bank that issues the Guarantee or Bond in favour of the beneficiary by order of the supplier is known as the Guarantor.

Documentary Collections* Documentary Collections are an international (and domestic) payments service offered by banks through which an exporter in one country may obtain payment from an importer in another country through the banking channels. This is an agreement whereby the goods are shipped and the relevant documents are sent by the sellers bank, or using the Banks Export Express service, by the seller themselves, to the buyers bank for payment at sight or at some specified future date. A Documentary collection consists of a collection schedule with relevant documents attached. A Bill of Exchange may also be included. The exporter instructs his bank to use these documents to obtain payment from the importer via the importers bank.

A brief summary of how it works: Exporter Completes documentation e.g. Invoice, Packing Lists etc. Dispatches goods abroad and obtains shipping documents. Sends all documents with his instructions to his Bank.

Exporters Sends documents to Importers Bank Bank Importers Advises Importer of arrival of documents. Bank Importer Obtains all documents on payment Or Acceptance of a Bill of Exchange. (Note: an acceptance is a promise to pay and not a guarantee of payment). Uses documents to obtain goods.

Bill Discounting* Discounting is a method whereby you can turn a credit transaction into a cash transaction and yet, at the same time, you as the exporter can offer extended facilities to your client, the buyer. Discounting can be done with or without recourse to you the seller. * Credit criteria terms and conditions apply.

"Secrets to Protecting your Investment"

Whether you're an Investor, Broker, Banker, Lawyer, Accountant or involved in the Financial Services Arena, you will have come across Financial Instruments. Over the last few years there have been many types of schemes promising High Yield returns with little or no risk. Now at last you will see the truth behind the Fraudsters smoke and mirror tricks. "Preventing Financial Instrument Fraud", was prepared by the ICC Commercial Crime Services, the anti-crime arm of the International Chamber of Commerce. This unique reference guide uncovers the mysterious world of High Yield Investment Programs (HYIP) and Financial Products such as Letters of Credit, Bank Guarantees, CD's, Safe-Keeping Receipts and more as used by Fraudsters.

"Forewarned is Forearmed"
"Individuals and companies must be able to invest and do business with confidence wherever they see the opportunity. The financial community, from international banks to small investors, must be aware of the pitfalls, the telltale signs that betray a fraud."

Maria Livanos Cattaui Secretary General International Chamber of Commerce

"Secrets the Fraudster doesnt want you to know"

The best way to understand how a Fraudster uses the financial/banking system is to look at the scheme from their viewpoint. You will learn about the following:

From how the Fraudster chooses his/her victim to how he/she sets up the investment program 7 things a Fraudster gets from your Bank Statement / Proof of Funds Secure & Insecure Methods of having control or loss of control of funds

Commission structure to Brokers, which help the Fraudster's goal. Use of Advisors including Bankers, Lawyers, Accountants, Insurance Brokers, Traders 10 techniques the Fraudster uses to protect him/herself against prosecution and imprisonment 10 questions the Fraudster doesn't want to hear you ask when filtering out investment offers Knowing these tricks and tips will save you time and most of all, your MONEY!

This unique reference book explains in simple language: the history behind the scams; the psychology utilised; the methods; the documentation; the jargon; the marketing techniques; the money laundering processes and a number of case studies showing the different approaches of the fraud.

ICC WARNING 'London Short Form 3034' - ICC 3034 London, 11 April 2003 The ICC's Commercial Crime Bureau (CCB), has warned banks and traders about the increasing use of a fraudulent financial document called 'London Short Form 3034'. "We have seen similar frauds on many occasions over the years. The 'London Short Form Guarantee', the 'ICC Format 3034 (London Short Form)' and 'ICC Format 3039 (London Long Term)' are other examples of similar fraudulent documents." said Mr Chris Spillett, CCB Information Analyst. "London Short Form 3034' is merely the latest in a series of derivations that fraudsters hope will confuse banks and traders sufficiently to slip through". To read ICC warnings click the following: ICC Warning 'London Short Form 3034' - 11 April 2003 ICC Warning SLC 3039/3032 - 22nd Feb 1993 ICC Warning 3039 - 1989/90 FED Warning - ICC 3034 / ICC 3039 - October 21, 1993 ICC Non-Circumvention and Non Disclosure Agreements (NCND Agreement) - 1993 Warning - Modified Insurance Guarantee ICC 4081 Format - 10 June 2002 Warning - ICC 4081 & ICC 4082 - 29th October 2002 To read Office of the Comptroller of the Currency (OCC) warnings click the following: OCC OCC OCC OCC OCC OCC OCC OCC OCC OCC Alert Alert Alert Alert Alert Alert Alert Alert Alert Alert Feb 1980 - 'ICC Notes', ICC-290, 322, 254 October 9, 1981 - Formats, Emissions & Telex December 8, 1983 - Funding Sources July 7, 1986 - Prime Bank Promissory Notes February 7, 1990 - Prime Bank LC's + Programs October 27, 1993 - Prime Bank Instruments November 22, 1993 - ICC NCND Agreement March 3, 1995 - Blocked Funds Deposits July 26, 1999 - Fraudulent Investment Programs March 30, 2001 - Federal Reserve Programs

To read Federal Reserve Bank warnings - "The FED" click the following: FED - Prime Bank WARNING, May 20, 2002 / MTN Market FED - Fraudulent Federal Reserve Note Schemes - July 2003 Federal Reserve does NOT license or register traders - June 11, 1996

"Money Laundering Tool"

The Financial Instrument Fraud (FIF) Model section includes a Chart originally drafted by an undercover law enforcement officer to explain the FIF scam. By analysing this chart you are able to identify the methods used by organised criminals to perpetuate the fraud. You learn how the 3 parts of Money Laundering are used in the Financial Instrument Fraud:

Placement Layering Integration

Every day the ICC Commercial Crime Bureau (CCB) receives requests from around the world, to examine and authenticate Financial Instruments. Now you will be able to compare the genuine from the fake. The Specimen Documents section helps you to identify fact from fiction. Examples taken from the files of the ICC CCB explain the incorrect and suspicious terms used in these Financial Instruments compared with a real Financial Instrument. These include:

Genuine Letter of Credit compared to a Fake Letter of Credit Genuine Stand-by Letter of Credit compared to a Fake Stand-by Letter of Credit Genuine Guarantee issued by a Bank compared to a Fake Prime Bank Guarantee (PBG) Other pages detail errors and "red flags" in Fake Certificates of Deposit, Non-Existent NCND Agreement, Fake Safe-Keeping Receipt, Fake Proof of Funds Letter, Fake Letter of Intent, Fake Promissory Note, Non-Existent Modified Form ICC No. 4081 and the Fake London Short Form Guarantee. Examples from Preventing Financial Instrument Fraud: To see an example of a Genuine Letter of Credit CLICK HERE To see an example of a Fake Letter of Credit CLICK HERE

"Offering nothing for something to people who want something for nothing"
There are many Common Terms and Phrases used in Financial Instrument Fraud. A checklist of more than 120 of these are included in a special Glossary section. Terms such as Collateral House, Fresh Cut Paper, Grand Master, Master Collateral Commitment, Prime Bank Trading. The inclusion of these "red flags" in an investment contract may start an investigation proceeding by a regulatory agency such as the SEC, FSA, or State Securities Agencies. From USA & Canada to Europe & the Pacific Rim fraudulent schemes have proliferated. 20 Case reports show the different way and means of parting victims from their money. Reports include:

Forged Bank Guarantees, Bank Debenture Programs, Advance Fee Fraud, Certificate of Deposit Fraud, Treasury Bill Leasing, Medium Term Notes Fraud, Prime Bank Trading & High Yield Investment Programs (HYIP)

A UK Law report further details a bank's dilemma when caught in a suspected Financial Instrument Fraud (FIF). Over the last few years articles have appeared to try to explain and promote the existence of Bank Trading Programs. In Hooking Victims, one such article is reproduced. You are shown how some historical factual information has been weaved with incorrect statements to portray a scheme that is hugely profitable as well as "risk free". Comments have been added to show the inaccuracies and nonsense in the Fraudster's handiwork. By referring to the Resources & Contacts section you will save hours of your research time. Besides addresses and contact numbers you are given the weblinks so you can see what the SEC, US Treasury, Federal Reserve, IMF, OCC, World Bank, Met Police and others really say about these scams. Other links show you where to report your scam including USA, CANADA, Europe, Australia, and New Zealand.

In the unfortunate event of being involved in a Financial Instrument Fraud, the Guide to Compiling Information section shows you the 6 key words, which will help clarify your thoughts. These key words will help when reporting your fraudulent scheme to the appropriate authorities. You will also learn that these schemes are not new. The Background to Financial Instrument Fraud tells you about Gregor I, Cazique of Poyais a/k/a Gregor Mac Gregor, 1786-1845, the earliest uncovered history of the invention of a country in selling fraudulent financial instruments to the public. Also mentioned is Charles Ponzi, regarded as the "father" of modern fraudulent financial frauds. Who needs this unique book? Investors, investment advisors, stockbrokers, accountants, CPA's, lawyers, bankers, life insurance agents, financial advisors, business owners, regulators, law enforcement as well as anyone who would like to inform themselves of this mysterious subject. The ICC as a service to the business community is offering this book directly to you at 65 + 5 shipping and handling. Buy NOW and receive the following: BONUS 1 - FREE 1 month subscription to the current version of Commercial Crime International - "Alerting business to threats from fraud and corporate crime" Topics have included Banking, Counterfeiting, Commerce, Cyber/Computercrime, Maritime, Money Laundering, Organised Crime, Fraudsters. Emailed to you when you order your copy. Essential reading every month! BONUS 2 - When you become a member of the ICC Commercial Crime Bureau (CCB) you will be entitled to a 5% discount on your first year's membership Becoming an ASSOCIATE member of the ICC-CCB entitles you to the following:

Monthly CCB Associates' Newsletter Monthly Commercial Crime International e-Journal Monthly Cybercrime e-Bulletin Bespoke specialist investigation services

Becoming a MAIN member (Restricted to Financial sector companies, Law Enforcement & Regulators) of the ICC-CCB entitles you, in addition to the above, the following:

Exclusive access to the CCB Database Search which contains over 140,000 names of individuals and companies and the modus operandi of FIFs Monthly CCB Confidential e-Bulletin Verification of any Financial Instrument Assistance from members, represented in 75 countries Fast Personal Response within 24 hours, every day except weekends. FOR MORE DETAILS of ICC Membership CLICK HERE

Preventing Financial Instrument Fraud (128 pages American A4) sells for 65 + 5 shipping and handling and may be ordered DIRECT from one of our friendly Customer Services Representatives. Fax: +44(0) 20 8594 2833 Telelphone: +44(0) 20 8591 3000 . Mailing Address: Commercial Crime Services, Maritime House, 1 Linton Road, Barking, Essex IG11 8HG UK. Or Email ccb@icc-ccs.org.uk with your details and we will call you back. Don't forget to ask for our special multiple order DISCOUNT