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For example, a fraudster may allege a Standby Letter of Credit (SBLC). [gc*PJ_QDXm$n?1n;7DGCJVfm*P`YTDP?No&ERadJu1r!eT"@"Sud/!ATmYGo(=jB
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A confirmer is most often a nominated bank. Glenn Ransier Disclaimer: Contents represent the authors sole opinions and may not represent those of any past, present or future employer. ;ui.$\%ckh+G!t6pE
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The applicant is a party to an underlying contract while the issuer of the standby letter of credit is not. Most often used by contractors or construction companies, they are typically needed for a portion of the overall projects value. p(i;Ke2hn36?\o&4?A2j1D])P7+VOF(:k94-3\WVD[Y*&IGE*DrF$Hab$H)k)S&Hfs_.&'%rg[1oU_-k[@%r6kKlXdbWV@QVnGU8HIrm&qL&~>
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An applicant may receive silent or openly known support to have a standby letter or credit issued. MUQ]bX[\f*U>EFC7G'X\?DVQId4:j7`Ze!$eB?1G@$)
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to lend support to help Company AZA be named as the applicant in the SBLC. If the buyers creditworthiness is in question, the bank may require the buyer to provide an asset or the funds on deposit as collateral before approval. \\3a#lpf8c.Vut0T&:9@`PoU?T
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The Internet Crime Complaint Center (IC3) has received complaints indicating fraud actors are fabricating business and financial industry connections, and access to international commodities markets in order to sell fictitious Standby Letters of *G*9Ms*B])mLe&e%jAEJ^tqQ+
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It is also risky because the simple terms of the SBLC with regards to a presentation or drawing requirement makes it difficult to stop an improper drawing. ()`,Ofr(qmTZcCk,&M5-LS3RgI+^\nt-"FPI:kJHNk:rM+M(oL*J9^HU/$t42U+R%NGMEd,MLI_3Y5pUf=KMX$d*ebb. It is a form of documentary credit where the bank becomes a guarantor to the seller for the payment. Ab7[&!n#1R@MOkH_*O1#BH'FJT)`oi&A8r6=]'lI,nIu+6YGQlO3i"D]?a+Z&8_O1
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