Frequently Asked Questions

We are often asked questions by our customers concerning online banking and the account opening procedure issues. We will provide you with answers to the most frequently asked questions on this webpage.

What steps are taken by Euro Exim Bank to combat financial crime?

Policy for Combating Financial Crime

EURO EXIM BANK LTD (Representative Office) is committed to the prevention of financial crime and has adopted procedures to detect and deter money laundering, terrorist financing or other illegal activities. It is our policy to deter and, where we can, prevent, the use of the EURO EXIM BANK LTD (Representative Office) as a conduit for illegal money laundering activities.

We have a comprehensive AML policy (“Anti-Money Laundering” policy) in place to guide our staff to prevent, detect and report any financial crime perpetrated through money laundering or financing illegal activities.

The success of this policy depends on the vigilance of everyone.
Our staff implements this policy with a clear understanding of the background to it and how it works in the context of our day-to-day business. They are highly trained to apply the following criteria;
a) The legal and regulatory framework and the serious legal and regulatory penalties for assisting in financial crime – even unwittingly- in every jurisdiction from which we operate.
b) Be aware of real-world methods by which criminals seek to commit financial crimes.
c) The requirement to report any suspicions promptly to the EURO EXIM BANK LTD (Representative Office) management.

Know Your Customer (“KYC”) 
At EURO EXIM BANK LTD (Representative Office), we offer our services to corporate entities that are verified as legitimate establishments by carrying out a thorough verification process. We practice high standards in obtaining documentary proof of the commercial position of the business to mitigate risks and assuredly check applicants against international sanction lists before issuing any financial instrument. EURO EXIM BANK LTD (Representative Office) unmistakably take every step to ensure transparency and protection against unfair business dealings.

Training for Staff 
EURO EXIM BANK LTD (Representative Office) ensures that our staff:
(i) know what money laundering is and how to avoid being victimised,
(ii) understand the need for vigilance in the application processes,
(iii) know how to identify and report suspicious transactions.

We conduct periodic refresher training for our staff. The MLRO or a member from the senior management are available to answer any questions concerning this topic.

What is a Letter of Credit?

A letter of credit provides a seller with a guarantee that they will get paid as long as certain documentary delivery conditions have been met. For this reason the use of letters of credit has become a very important aspect of international trade.
Letters of credit can contain complex terms and conditions and state what documents the Beneficiary must present, what information they must contain, and the place and date it expires.
In the event that the buyer (Applicant) is unable to make payment on the purchase, the Beneficiary may make a demand for payment on the bank. The bank will examine the Beneficiary’s demand and if it complies with the terms of the letter of credit, will honor the demand.
They are often used in international transactions to ensure that payment will be received where the buyer and seller may not know each other and are operating in different countries. In this case the seller is exposed to a number of risks such as credit risk, and legal risk caused by the distance, differing laws and difficulty in knowing each party personally

What are the differences between Sight and Usance LC’s?

With a Sight L/C, the issuing bank will pay the beneficiary of letter of credit right away (no credit tenor / sight basis) after the issuing bank find that the documents presented to them are compliant with the Letter of Credit’s terms and conditions
A Usance (deferred) Letter of Credit (L/C) is a letter of credit that is payable on specific term / tenor upon presentation of necessary documents within the terms and conditions of the letter of credit. The issuing bank will incur a deferred payment undertaking or payment acceptance that they will pay on specific tenor or credit term (usance tenor) once the documents presented are deemed compliant.

What does an LC trade flow look like ?

How do I get an LC issued by Euro Exim Bank?

LC’s (Sight or Usance) may be issued by The St. Lucia or the UK.
The process is simple.
At Sight LC Procedure
1. Send us the pro-forma/sales invoice
2. EEB create a draft instrument and quote you our charges (to be paid in advance)
3. Once you have accepted the draft, we send you indemnity (KYC/AML/due diligence) documents which need to be signed and notarized by a lawyer.
4. We also send you a formal invoice for our charges.
5. Once we receive our paid invoice along with all indemnity documents, subject to legal and compliance acceptance, we will SWIFT the instrument to the beneficiary’s bank. Escrow account facilities with a UK third party are also available to assist in settlement of invoices, and we request for a commitment fee along with Escrow administration charges.
6. The beneficiary sends the goods to you and the documents to us.
7. Once documents have arrived, we have 3 business days to act on it, after which, if formally accepted, we send you a copy of the documents.
8. Upon acceptance of the documents, you will be required to pay the beneficiary. When completed, we send you all the original documents.
9. Goods arrive.

What is a Standby Letter of Credit?

Like a Letter of Credit, a standby letter of credit (SBLC) is a guarantee of payment issued by a bank on behalf of a client that is used as “payment of last resort” should the client fail to fulfill a contractual commitment with a third party Standby letters of credit are created as a sign of good faith in business transactions and are proof of a buyers’ credit quality and repayment abilities. The institution issuing the SBLC performs compliance and brief underwriting duties to ensure the credit quality of the party seeking the letter of credit, then sends notification to the bank of the party requesting the letter of credit (typically a seller or creditor).
Importantly, when requesting a SBLC, a business owner proves to the bank he is capable of repaying the loan. Collateral such as promissory notes, post-dated cheques and Escrow deposits will be required to protect the bank in case of default . According to the service level agreement the bank typically provides a letter to the business owner within one week of receiving documentation. The business owner must pay a SBLC fee for each year that the letter is valid. The negotiable fee is typically 1-10% of the SBLC value.

How do I get a SBLC issued by Euro Exim Bank?

SBLC’s may be issued by The St. Lucia or the UK.
The process is simple.
SBLC Procedure
1. Send us underlying relationship contract (Ex: Sales Contract / pro-forma invoice)
2. EEB create a draft instrument and quote you our charges (to be paid in advance).
3. Once you have accepted the draft, we send you indemnity (KYC/AML/due diligence) documents which need to be signed and notarized by a lawyer.
4. We will send you a formal invoice for our charges.
5. Once we receive our charges along with all indemnity documents, we will SWIFT the instrument to the beneficiary’s bank immediately. Escrow account payable upon SWIFT of the instrument is acceptable. For escrow payments, we will request a commitment fee along with Escrow administration charges.
6. You will pay the beneficiary at least 14 days before the expiry date (Up to 2 years from SBLC issue date)

Do you provide a service for Collection and discounting of bills?

No. Although this is a major trade service offered by a number of financial institutions we do not offer this service, nor do we recommend any party able to provide such services.
As international trade takes place across borders, with companies that are unlikely to be familiar with one another, there are various risks to deal with. These include:
Payment risk: Will the exporter be paid in full and on time? Will the importer get the goods they wanted?
Country risk: A collection of risks associated with doing business with a foreign country, such as exchange rate risk, political risk and sovereign risk. For example, a company may not like exporting goods to certain countries because of the political situation, a deteriorating economy, the lack of legal structures, etc.
Corporate risk: The risks associated with the company (exporter/importer): what is their credit rating? Do they have a history of non-payment?
To reduce these risks, banks – and other financiers – have stepped in to provide trade finance products.

What is E-money?

E-money is digital cash that moves outside the traditional network of banks, cheques, and paper currency, and is the money balance recorded electronically on a stored-value card.

These cards have microprocessors embedded which can be loaded with a monetary value. Another form of electronic money is network money, software that allows the transfer of value on computer networks, particularly the internet. Electronic money is a floating claim on a private bank or other financial institution that is not linked to any particular account. E-money lets online and mobile shoppers pay for merchandise by directly debiting their bank accounts through electronic payment systems that include person-to-person transactions, digital wallets, smart cards, and Internet currency. Examples of electronic money are bank deposits, electronic funds transfer, direct deposit, payment processors and digital currency.

How can I obtain Assistance?

There are various ways in which you can obtain assistance. You can contact us as follows:
• Contact by e-mail : info
• Contact by phone : +44 208 207 2868
• Contact by post : Suite 1c, 1 Oaks Court, 1 Warwick Road, Borehamwood Hertfordshire, UK WD6 1GS

What are the first steps to get an LC issued?

Everything starts with the receipt of the initial Pro-forma (PI) or Sales Invoice from the applicant (Buyer) .

This will be a commercial invoice indicating the buyer and seller, and all terms and conditions of the transaction. It will also state the name of the beneficiary bank and SWIFT code to enable secure transmission of instructions and any ongoing correspondence.

What limits do you have?

Typically, our operating limits for LC’s and SBLC’s are up to 10M USD, dependent on the KYC/AML/DD checks and payment history. Any transaction done are always subject to compliance and legal checking.

How quickly can you provide the first draft format?

If all data is available from the PI, we undertake to provide the first draft format (not MT700 at this stage) within 3 working days for applicant approval.

What indemnity documents are needed?

Once LC MT700 terms are accepted, we generate a series of indemnity documents, for completion by the applicant and notarised/verified by authorised parties as appropriate. These include side letters, guarantees, promissory notes and the requirement for a cheque covering the entire value of the transaction, drawn on the applicant bank.

How long does it take for compliance processes to be completed?

Compliance is key to our operations. We undertake to complete our legal, risk and compliance checks within 5 working days, and report back to the applicant in case additional documents are required. Please note that no instruments will be transacted without the necessary documentation and authorisations. All documents need to be approved by management within EEB, we issue the formal MT700, sending the message via SWIFT to the Beneficiary bank.

When are shipping documents sent?

Shipping documents (i.e. Bills of lading and all specified documents in the LC) are sent to EEB by the Beneficiary Bank. At this point EEB are still the Consignee, i.e. the legal owner of goods until all conditions and advanced payment is settled by the applicant.

What happens to Shipping documents?

The content of the beneficiary bank package (all B/L’s etc. ) is verified against the conditions of the LC, including document count , insurance, inspection, origin etc.

What if there are discrepancies?

If all documents are in order, EEB then issue an MT754 acceptance to the beneficiary bank, enabling ownership and title to finally pass to the applicant. This also checks that all fees are paid.

Can presentations be rejected?

Yes. If rejected due to discrepancies, incorrect data or non-performance, all docs will be returned to the Beneficiary and EEB will hold NO liability. Also, a SWIFT MT734 will be sent as proof of rejection.

What if there are small changes to the transaction?

In the event of a problem with the content of the LC (but not the overall tenor (meaning or intent), EEB are able (at the request of the applicant, in agreement with the beneficiary) send an amendment SWIFT message MT707. Typically, this will be to identify a later delivery date, revision of documents etc. as long as it does not fundamentally change the LC.

Euro Exim Bank Ltd – Representative Office – UK