Our services

Trade Finance Instruments

Trade finance services are primary products of Euro Exim Bank’s business model. With our experience and knowledge in trade finance industry we are ready to provide a reliable and effective service for our clients international business transactions. Euro Exim Bank is specialized and have the quickest issuance procedures, ensuring that you spend minimum time on process and documentation than through other institutions.


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Corporate Banking

Euro Exim Bank unveils its newest product, Prestige Plus savings accounts. This is designed to provide flexible and integrated savings solutions with ease of opening accounts from anywhere in the world. These can be operated as corporate savings accounts as well as personal savings accounts and access is available online 24×7. We provide banking with tight and appropriate due diligence and security.


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FAQ

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.

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

LC’s (Sight or Usance) may be issued by 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 via trusted 3rd parties. 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.

Once initial Letter of Credit drafts are accepted, we generate a series of indemnity documents, for completion by the applicant and notarised/verified by authorised parties as appropriate. These include such items as: side letters, guarantees, articles of association, director details, proof of funds and promissory notes and/or bills of exchange drawn on the applicant bank.

We issue a range of Bank Guarantees such as Advance Payment Guarantee, Bid Bond Guarantee, Deferred Payment Guarantee, Financial Guarantee, Foreign Bank Guarantee and Performance Guarantee.

You can follow the below process to obtain the required Bank Guarantee.

1. EEB receives underlying relationship contracts (Ex: Sales Contract / pro-forma invoice).

2. EEB creates the first draft BG and send quote the Bank's charges within 3 working days.

3. Once the draft has been accepted, we send the indemnity documents which must be signed and notarized by an appropriate legal representative.

4. EEB send you formal invoices for our indemnity process (3000 USD) and issuance charges.

5. Once invoices are paid and all indemnity documents are received, subject to legal and compliance acceptance, we will SWIFT the instrument to the beneficiary's bank.

6. Applicant pays the beneficiary at least 14 days before the expiry date.

SBLC’s may be issued by 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 via trusted 3rd parties. 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)

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.

The three main areas are micro risks, macro risks, and product risks.

Micro risks are encountered at the individual customer level and are confined to the financial (credit) and operational risks associated with their business.

Macro risks can be defined as those external factors which have a tendency to impact adversely on a customer's international trade business. Some of the more frequent problems in trade financing are caused by a lack of appreciation of country risk, foreign exchange risk, industry risk, bank risk and fraud.

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:

Bank Risk: The world is full of banks of varying degrees of stability and strength and indeed the business pages of major magazines and newspapers are filled with articles on bank performance and bank collapse. When financing an importer or exporter, a bank often looks to the security of a backing document issued by another bank, be it a guarantee or a documentary credit. It is important to realize that the documentary credit issued by Bank A may not be as secure as that issued by Bank B, due to Bank A.

• having a history or delaying or actually reneging on payment.

• having a habit of rejecting documents citing trivial discrepancies;

• being domiciled in a country notorious for foreign exchange restrictions and moratoriums; and

• being domiciled in a country classified as high risk.

Dealing with bank risk is quite complicated and can be a sensitive issue most of the time, even more than country risk. Again, many banks leave this problem to a specialized unit and seek their guidance from time to time. In fact, many international banks produce and distribute instructions for their branches, setting limits for the various institutions they traditionally deal with. Anything outside such parameters has to be referred to this specialized unit for clearance.

A contribution to the business decision is also required from the management of the branch and if they feel that the branch can maintain recourse to a valued customer, then there is some flexibility to deal with the higher risk bank.

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.

Foreign Exchange Risk: Payments and receipts in foreign currency are an everyday occurrence in international trade and the trader is always at the mercy of exchange rate fluctuations due to various economic, political and even purely speculative reasons. The volume of the global foreign exchange market leaves the importer/exporter with no control and an adverse movement in the transaction currency vis-a-vis the local currency can wipe out the entire profit and more of the deal.

Fraud: To cover the various aspects of maritime and indeed any other type of trade fraud requires volumes of paper. There are various types of fraud like documentary fraud, counterpart fraud, insurance scams, cargo theft, scuttling and piracy.

Corporate risk: The risks associated with the company (exporter/importer):

The financial standing of the importer. The bank has to look to the importer to pay the import bill drawn under the DC and therefore should be sure that the latter has or will have the funds to pay.

The goods. Trade finance is supposed to be self-liquidating and the goods must be readily saleable. Consideration should also be given to the risks associated with perishability of the goods, possible obsolescence, import regulations, packing and storage, etc.

The status of the exporter (or beneficiary of the DC). There is always the risk that an arrant exporter could ship substandard goods or, worse still, complete rubbish, and one always guards against this by finding out as much possible about the exporter using status reports and other confidential information from banks and credit rating agencies such as Dun & Bradstreet. It is always wise to request a reliable third party to inspect the goods prior to shipment and produce a report called an inspection certificate.
To reduce these risks, banks – and other financiers – have stepped in to provide trade finance products.

Typically, our operating limits for LC’s and SBLC’s are from minimum USD 100,000 up to maximum of USD 10 million , dependent on successful completion of KYC/AML/DD checks, and payment history. Any transactions done are always subject to compliance and legal approvals.

There are various ways in which you can obtain assistance.

St. Lucia:
E-mail : info@euroeximbank.com
Phone: +1758 450 8349
Post: La Place Creole Building, Rodney Village, Rodney Bay, PO BOX 838, Gros-Islet, St. Lucia, WI

London Representative Office:
Phone: +44 208 207 2868
Post : Suite 1c, 1 Oaks Court, 1 Warwick Road, Borehamwood Hertfordshire, UK WD6 1GS

Payments & Account Opening Inquiries:
E-mail : payments@euroeximbank.com
E-mail : ebanking@euroeximbank.com
Phone: +44 203 011 0133 (UK) & +1758 450 8349 (WI)

Policy for Combating Financial Crime

EURO EXIM BANK LTD, through our regulated and supervised Head Office in St Lucia, WI, and our London Based 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 across the group as a conduit for illegal money laundering activities. We have a tightly implemented 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 and how it works in the context of our day-to-day business. They are continuously updated and 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 management team.

Know Your Customer ("KYC")

We offer our services exclusively 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 take every reasonable step to ensure transparency and protection against unfair business dealings.

Training for Staff

EURO EXIM BANK LTD 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 team are available to answer any questions concerning this topic.

Heavily used in the construction industry, Euro Exim Bank’s Tender Guarantees may be issued following comprehensive due diligence, liaison with the tender owner and bidder and full disclosure of the the contractors financial stability, project plan and resources to undertake the contracted project, in order to safeguard all parties and mitigate any risks.

Also dependent upon the risk factors, reviewed on a case-by-case basis, fees would typically range from 10-20 percent of the project cost plus any premium (1-5%).

Benefits of working with EEB include dedicated specialist account managers, timely instrument issuance and cost-effective processes and fees structures to assist bidders/contractors through the life cycle of the transaction.

International cross border transactions between parties unknown to each other need assurance of ability and means to pay.

The proof of funds (POF) letter is such an assurance, valid at the time of issuance, providing a snapshot of the sources and amounts, indicating, verifying and confirming that the buyer has the means to fulfil a financial obligation for a stated value at a certain time.

The source of client funds that underpin any POF can take many forms. These range from straightforward accumulation of funds held in bank accounts spanning a particular time period, inheritances, pension statements, share sales, dividends or compensation awards, all of which may be verified by official sources.

At Euro Exim Bank, we issue POFs following comprehensive due diligence, liaison with the applicant’s bank, and independent financial checks giving you peace of mind, safeguarding all parties and mitigate any risk, all in a timely, cost-effective process.

Typical POF wording will follow this example:

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Typical POF wording will follow this example:

We confirm to the best of our knowledge and belief at the time of writing, that these funds are fully free of any liens, debts and/or encumbrances and are clean, clear and non-criminal origin and are available in the form of xxxx, (cash, dividends, etc) ____________________.

We also include the following information about two authorized contact persons at the guarantor bank.

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(Euro Exim Bank is in compliance with General Data Protection Regulation (GDPR) introduced across Europe on 25 May 2018.)