Letters of credit (L/Cs) may prove even harder to obtain for commodities traders as a new scandal involving forged storage certificates emerges.

More than two years ago, US$3 billion of duplicate storage certificates used by a minerals trader at the Chinese port of Qingdao made banks reluctant to provide L/Cs for commodities traders (DC World News, 2 & 9 July 2014).

Access World

This year, forged warehouse certificates are circulating in the name of Access World, a metals warehouse company owned by commodity giant Glencore. The fake documents apparently relate to nickel stored in the Asia Pacific region.

Banks are reportedly treading more cautiously in the wake of the news. They have put stricter controls in place before agreeing to issue L/Cs or entering any sale and repurchase agreements.

Some banks have reportedly refused to enter into new deals to finance metal stored in Access World facilities, other banks are undertaking much more detailed due diligence into deals involving metal stored by the company.


Access World said in January that it had become aware of fake warehouse receipts circulating in its name and urged holders to seek authentication.

The company has said it will now provide authentication for clients' certificates and honour "duly authenticated original warehouse receipts."

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.