The Swift system, (“Society for Worldwide Interbank Financial Telecommunications”), is crucial to IntaCapital Swiss, (See About IntaCapital Swiss), who are the world’s leading boutique finance company specialising in Collateral Transfer Agreements, (See Collateral Transfer), and Leased Bank Guarantees, (See What Is a Leased Bank Guarantee). The Swift system provides a secure bank to bank platform for sending authenticated financial messages between their member banks and financial institutions, located around the world.
The Collateral Transfer Agreement consists of two companies referred to as the Provider and the Beneficiary and is where the Provider instructs their bank, (the Issuing Bank), to Swift transfer a Bank Guarantee to the Beneficiary’s bank, (the Receiving Bank). It is therefore of the upmost importance that both banks are members of the Society for Worldwide Interbank Financial Telecommunications.
For more details on the Provider please go to “Who Are Providers And What Are Their Benefits From Leasing Bank Guarantees”.
Both the Issuing Bank and the Receiving Bank have two main functions with regard to a Collateral Transfer Agreement. The first is to due diligence the Collateral Transfer Agreement to confirm the contents contained therein, adhere to international and local jurisdiction Financial Regulations. If the due diligence is successful, the second function is for the Issuing Bank to Swift transfer the Bank Guarantee to the Receiving Bank as per the Terms and Conditions of the Collateral Transfer Agreement.
Normally, the Issuing Bank will pre advise by Swift to the Receiving Bank the arrival of a Bank Guarantee which the Receiving Bank will duly Swift reply accepting the Bank Guarantee on behalf of the Beneficiary. The Issuing Bank will then Swift transfer the Bank Guarantee.