A bank draft is a negotiable instrument where payment is guaranteed by the issuing bank. Banks verify and withdraw funds from the requester’s account and deposit them into an internal account to cover the amount of the draft. A seller may require a bank draft when they have no relationship with the buyer.
Over 95% of the bank drafts going around are fraud since we receive a lot of requests from people seeking to monetize it, and we will find out right after that ALL were fraudulent!
The fact that a customer is looking to monetize a bank draft is a WARNING sign in itself because if the instrument was real why put it in a third-party bank when the customer can put it in their bank.
But, in order not to close the door to all holders of real Drafts Bancaires, we absolutely ask for the following documents before responding to any LTV request:
Documents to check:
- A double-sided copy of the instrument
- An MT 199 or an RWA from the issuing bank in which it undertakes to issue the DB in the name of the beneficiary that its client will give it,
- Passport and CIS
- Copy of the Swift MT 103 which must have been issued and sent to the recipient at the same time as the check
- MT799 Pre-advice from the Seller Bank
- BPU MT799
- MT110 & Hard copy