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Sending Documents direct to Customers bank

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Mon, 03/29/2010 - 03:06
mahmoodlahhak
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Joined: 03/14/2010
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Dear Experts

Our customer asking that sumbmitt their Collecting Documents ( Commercial Invoice,Packing List,Certificate of Origin and Bill of Lading) direct to their bank without involving our bank. Is there any risk sending documents direct to customers bank.also explain what is advantage and disadvantage of such practice.

we are in Saudi Arabia and customer in Sudan

regards

lahhak

‹ Can we make payment to two benefeciaries in one L/C. Forwarding Cargo recipt ›
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Mon, 03/29/2010 - 20:02
#1
sapphirecapital
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Joined: 03/07/2010
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Sending Documents direct to Customers bank

ups talk to compliance immediately; beside the liability problem there is a possible dual use in such structures allowing money laundering or at least covered structures, there is a reason for you to process the papers and secure the papertrail. Had that problem myself in the bank and the police in the bank, was a German/Russian file. so be carefull

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Mon, 03/29/2010 - 13:18
#2
KIAS
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Joined: 01/19/2009
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Documents directly to issuing bank

For your case, advantage is that you will save time for payment I think, but problem is:

1- Documents have to be sent by your bank as response for the LC issued by the issuing bank

2- Your bank better check documents, to check may have discrepencies before sending to issuing bank,

Than my advice is your bank to send the documents as standards rules

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