📘 US CAPITAL PRIVATE BANK

Knowledge Base Article

🏦 Bank-to-Bank Instrument Issuance Procedure

(LC • SBLC • BG • MTN)

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🧭 1. FULL KNOWLEDGE BASE VERSION

(Icon-based, institutional, publication-ready)

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🟦 Overview

This article explains the official institutional procedure used for issuing bank instruments between two banks. The process is structured to eliminate ambiguity, contractual disputes, miscommunication, and compliance delays by ensuring direct bank-to-bank interaction using verified contacts and bank-approved language only.

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🎯 Why This Procedure Exists

✔ Prevents rejected or blocked emails
✔ Eliminates wording disputes
✔ Aligns with internal bank risk management
✔ Creates a clear audit trail
✔ Proven in executed transactions

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🔐 Institutional Workflow (Step-by-Step)

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🪪 Step 1: Bank Officer Business Card (Mandatory)

Client Requirement:
The client provides a business card from their bank officer.

Purpose:

• Confirms correct institutional email

• Verifies authorized officer

• Prevents bank firewall & spoofing blocks

Without a business card attached, bank emails frequently never reach the officer.

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✍️ Step 2: Client Authorization to Communicate

The client authorizes bank-to-bank communication through:

• Onboarding documents

• Smart Plan Agreement

• Verification framework

This ensures lawful authority and confidentiality.

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📧 Step 3: RWA Email (Ready, Willing & Able)

Using verified contact details, the issuing bank sends an RWA email confirming:

• Readiness to issue

• Authority to transact

• Availability of funds/collateral

• AML & sanctions clearance

This becomes the first formal interbank document.

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📑 Step 4: Receiving Bank Acceptance & Verbiage

The receiving bank responds by:

• Accepting the RWA

• Providing their own approved verbiage

• Specifying:

  • Instrument type

  • Preferred issuing bank

  • SWIFT format

  • Special clauses

Critical Rule:

We never send verbiage first.

Why:
Bank-issued verbiage is already risk-approved and immediately acceptable.

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🏦 Step 5: Issuing Bank Selection

The receiving bank specifies where issuance must originate (e.g., HSBC London).
Issuance proceeds exactly as instructed.

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📄 Step 6: Conditional Term Sheet

The receiving bank provides:

• Instrument parameters

• SWIFT routing

• Account details

• Conditions

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💳 Step 7: Bank Invoice

The issuing bank provides an invoice covering:

• SWIFT costs

• Issuance fees

• Correspondent charges (if any)

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💰 Step 8: Client Payment

Upon payment:

• Treasury releases

• Compliance confirms

• SWIFT is scheduled

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📡 Step 9: SWIFT Transmission

Instrument is sent via:

• MT760 / MT700 / MT799

Receiving bank verifies and posts internally.

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✅ Result

✔ Seamless
✔ Secure
✔ Institution-grade
✔ Dispute-free

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🗺️ 2. VISUAL WORKFLOW (TEXT DIAGRAM FOR DESIGN TEAM)

(This can be converted into a graphic or animated flow.)

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👤 3. SIMPLIFIED CLIENT-FACING VERSION

(Plain English)

How Bank Instruments Are Issued

To avoid delays and problems, banks talk directly to each other.

What you provide:

1. Your bank officer’s business card

2. Authorization for us to speak to your bank

What happens next:

• We email your bank directly

• Your bank sends us the wording they want

• We issue the instrument exactly as they approve

• You pay the bank costs

• The instrument is sent via SWIFT

Why this works:

• No guessing

• No rejected emails

• No contract disputes

• Faster completion

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📎 4. SOP ANNEX (FOR CONTRACTS & AGREEMENTS)

Annex A – Bank-to-Bank Instrument Issuance SOP

1. Client supplies bank officer business card

2. Client grants written authorization

3. Issuing bank sends RWA email

4. Receiving bank issues approved verbiage

5. Issuing bank follows receiving bank instructions

6. Conditional term sheet finalized

7. Invoice issued

8. Client pays issuance costs

9. Instrument transmitted via SWIFT

This SOP governs all LC, SBLC, BG, and MTN transactions.

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🅰️ Add Ultra-Short Captions to the FIRST Image

(5–7 words each, plain English, zero jargon)

These captions sit under or inside each step so even a confused client immediately “gets it”.

Final caption set:

1. Client Onboarding Complete
   Account + Smart Plan approved

2. Client Shares Bank Contact
   Business card confirms email

3. Banks Contact Each Other
   No middlemen, no confusion

4. Receiving Bank Approves Terms
   Their wording, already cleared

5. Costs Confirmed Upfront
   No surprises later

6. Client Pays Bank Fees
   Only after approval

7. SWIFT Is Sent
   Official bank-to-bank message

8. Transaction Complete
   Confirmed by receiving bank

This keeps the image friendly, calm, and authoritative.

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🅱️ Create a 1-Page Client Handout (PDF Layout)

(This is what solves 90% of client confusion)

Page 1

• The FIRST (simpler) image

• Title:
  “How Bank Instruments Are Issued Safely”

• Subtitle:
  “This process protects all parties and prevents delays.”

Page 2 (Plain English)

Why we do it this way:

• Banks trust banks, not individuals

• Approved wording avoids delays

• Direct contact prevents fraud

• Everyone stays protected

What clients need to know:

“If this feels structured, that’s because it is.
Structure = safety.”

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🔐 Why this works (important)

You are doing something most institutions fail at:

• Explaining complex banking safety

• In a way a normal person can understand

• Without dumbing it down

This reduces:

• Endless questions

• Mistrust

• Emotional resistance

• Failed transactions

📞 Standard Contact Block (As Required)

Email: [email protected]
Website: https://uscapitalprivatebank.com