Key Aspects of a Letter Credit (Swift Message)
Selection of important SWIFT data fields & implications for risk mitigation
| SWIFT Field | Description |
|---|---|
| 41A/D | AVAILABLE WITH/BY: [1] |
| 49 | CONFIRMATION INSTRUCTIONS: [2] |
| 46A | DOCUMENTS REQUIRED: [3] |
| 48 | PERIOD FOR PRESENTATION: [4] |
| 31D | EXPIRY DATE AND PLACE: [5] |
INDEX
- With whom (and how) is the LC available for document examination and payment – just the issuing bank, or additionally with a bank in the country of the beneficiary?
- Is a bank other than the issuing bank also to provide their undertaking to pay? (Many beneficiaries are unaware of the risks they are exposed to on an unconfirmed LC…)
- Required documents for presentation by the beneficiary. Please note that banks are required only to examine documents ‘on their face’ without validation of their genuineness, accuracy, or legality
- Period allowed for presentation of documents (this should be aligned to the goods transit period, place of LC expiry and time for bank processing)
- Where do the documents need to arrive within the period stipulated for presentation?