Answers to the Most Frequently Asked Questions...
What types of Proof of Funds accounts can be provided?
What is a Verification of Deposit (VOD)?
What is the SWIFT messaging system?
What is a SWIFT MT999 confirmation?
What is a SWIFT MT799 confirmation?
What is a SWIFT MT760 confirmation?
What types of SWIFT messages are available with our POF accounts?
What is the procedure for opening a Proof of Funds account?
What are the minimum and maximum amounts available?
How long can the account be kept open for Proof of Funds uses?
What happens to the Underwriting Fee if the account is not opened?
How is the Arrangement Fee protected?
Can the Arrangement Fee be paid after the account has been opened?
What types of Proof of Funds accounts can be provided?
We can open a U.S. Money Market account, or open an account in a US bank's private banking division. A standard Verification od Deposit (VOD) is available with all account types, with SWIFT messaging available at additional cost.
What is a Verification of Deposit (VOD)?
It is a document signed by a company's or individual's financial institution that provides verification of the balances in their financial accounts. A written Verification of Deposit will adequately serve the majority of Proof of Funds requirements. Other types of confirmations done with bank-to-bank SWIFT messages are most commonly used for verifications tied to transaction settlements or securities transfers, and have special account set-up procedures that are available at additional cost.
What is the SWIFT messaging system?
S.W.I.F.T. ("Society for Worldwide Inter-bank Financial Telecommunication") provides mechanisms for electronic inter-bank messaging and funds transfer. SWIFT messages are used legitimately to conduct business between transactional partners. The SWIFT system was established in the early 1970's by a group of European banks who until that time had been conducting business together via telex and courier.
SWIFT provides for a number of different message types and purposes. Each type of SWIFT message is pre-defined and follows a specified format. All SWIFT messages must adhere to these established forms or they will be rejected by the receiving bank. There are nine (9) SWIFT message categories with multiple message types in each.
What does the SWIFT MT999 option provide?
An account with the SWIFT MT999 capability allows bank-to-bank SWIFT electronic verification for Proof of Funds in the account, with no further comment. This SWIFT format is an appropriate message for a simple Proof of Funds communication and it is part of the Common Group of SWIFT formats providing a General Free Format for SWIFT messaging.
There is a $1 million minimum account size for a SWIFT MT999, and additional costs apply.
What does the SWIFT MT799 option provide?
An account with the SWIFT MT799 capability allows bank-to-bank SWIFT electronic verification for Proof of Funds in compliance with the SWIFT Category 7 "Treasury Markets & Syndication" message types. Often there is a misconception that a particular circumstance requires a SWIFT MT760 message, when in fact, the SWIFT MT799 format provides the required bank confirmation for the application.
There is a $1 million minimum account size for a SWIFT MT799, and additional costs apply.
What does the SWIFT MT760 option provide?
An account with the SWIFT MT760 capability allows bank-to-bank SWIFT electronic verification of the account, and will include a blocked funds provision. There is no other bank guarantee provision available in the SWIFT instructions. There is a $1 million minimum account size for this SWIFT wire communication. Additional costs apply.
What types of SWIFT messages are available with our POF accounts?
SWIFT MT999, MT799 and MT760 message formats are available with the POF accounts we arrange in US private banking divisions. Additional costs apply dependent upon the message type.
What is the procedure for opening a Proof of Funds account?
What are the minimum and maximum amounts available?
The minimum account size is $100,000 and the maximum account size is $5 billion. We can syndicate larger accounts from our "investor pool" upon request.
How long can the account be kept open for Proof of Funds uses?
We have 15 and 30 day terms available, dependent on account type. The account can be renewed for additional terms upon mutual agreement, typically at discounted rates.
What happens to the Underwriting Fee if the account is not opened?
If, in the unlikely event we fail to open the Proof of Funds account under the provisions of the Term Sheet and the Principal Agreement, the Underwriting Fee is promptly refunded.
How is the Arrangement Fee protected?
The Arrangement Fee is deposited in a Trust Account with a licensed third-party Escrow Agent and the Fee is not released until it is confirmed that the account has been opened. In the unlikely event the account is not opened, the Arrangement Fee is returned by the Escrow Agent.
Can the Arrangement Fee be paid after the account has been opened?
No, the Arrangement Fee must be placed in the Escrow Trust Account before the Proof of Funds account can be opened due to the significant costs incurred to open the account, and to insure mutual protection for both parties.
