Hi all,
I have a case to seek your advice. Our bank has forwarded 6 sets of D/P(s) to a bank in Egypt with the instructions “release Documents against Payment”. After many payment tracers, the collecting bank replied that all sets of D/P have been released against 30 days, 60 days, 120days…from health approval date (as payment instruction on cover letter). Because of our arguments, they sent back the photocopies of Fake Cover letters to prove their action. Payment instruction and form of Fake Cover letter were absolutely changed.
What can I do now?
Many thanks.
Documentary collection
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PhanThanhNhan
- Posts: 102
- Joined: Fri Apr 05, 2019 5:23 pm
Documentary collection
Very little in practice I imagine.
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PhanThanhNhan
- Posts: 102
- Joined: Fri Apr 05, 2019 5:23 pm
Documentary collection
any one can give me an advice?
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PhanThanhNhan
- Posts: 102
- Joined: Fri Apr 05, 2019 5:23 pm
Documentary collection
Some more information:
Drawee : MONDIAL IMPORT EXPORT - Luxor, Uber Egypt, Elmanshia ST.
Goods: Frozen Pangasius Fillet (Sea food)
Total amount for 6 D/P(s): USD 525,000.-
Collecting bank: African International Bank, Luxor Branch
Remitting bank: Vietnam Export Import Commercial Joint-stock Bank (Vietnam Eximbank).
03 other Vietnamese customers have the same circumstances.
Is there any practice or regulation like this issue in Egypt?
Drawee : MONDIAL IMPORT EXPORT - Luxor, Uber Egypt, Elmanshia ST.
Goods: Frozen Pangasius Fillet (Sea food)
Total amount for 6 D/P(s): USD 525,000.-
Collecting bank: African International Bank, Luxor Branch
Remitting bank: Vietnam Export Import Commercial Joint-stock Bank (Vietnam Eximbank).
03 other Vietnamese customers have the same circumstances.
Is there any practice or regulation like this issue in Egypt?
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HOANGTHIANHTHU_invalid
- Posts: 189
- Joined: Fri Apr 05, 2019 5:15 pm
Documentary collection
Hi,
The collecting/presenting bank must act in good faith and exercise resaonable care. It must release the documents as per the remitting bank’s instructions. It is fraud 100% if what you described is true.
Fraud is a matter of local law. USD525,000 is a big amount that is worth a lawsuit. If all other solutions fail, the principal may bring the case to the court of law for settlement. The collecting/presenting bank may be accused of two crimes: (i) delivering the documents not as per the remitting bank’s instructions; and (ii) committing fraud.
Best regards,
N.H.Duc
[edited 5/15/2013 8:11:02 AM]
The collecting/presenting bank must act in good faith and exercise resaonable care. It must release the documents as per the remitting bank’s instructions. It is fraud 100% if what you described is true.
Fraud is a matter of local law. USD525,000 is a big amount that is worth a lawsuit. If all other solutions fail, the principal may bring the case to the court of law for settlement. The collecting/presenting bank may be accused of two crimes: (i) delivering the documents not as per the remitting bank’s instructions; and (ii) committing fraud.
Best regards,
N.H.Duc
[edited 5/15/2013 8:11:02 AM]
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PhanThanhNhan
- Posts: 102
- Joined: Fri Apr 05, 2019 5:23 pm
Documentary collection
Many thanks to Mr Duc's advice.
There are some details of Faked cover letter:
+ Computerized form without signature I/O form of our bank with 2 authorized signatures.
+ Payment instruction: Deliver documents to Drawee, as per seller request that's buyer (Mondial Import-Export) will pay the total amount within 60 days from final health approval date I/O release documents against payment (D/P) .
The collecting bank affirmed that they had received the a/m cover letter from our bank.
What are benefits of collecting bank in this fraud?
There are some details of Faked cover letter:
+ Computerized form without signature I/O form of our bank with 2 authorized signatures.
+ Payment instruction: Deliver documents to Drawee, as per seller request that's buyer (Mondial Import-Export) will pay the total amount within 60 days from final health approval date I/O release documents against payment (D/P) .
The collecting bank affirmed that they had received the a/m cover letter from our bank.
What are benefits of collecting bank in this fraud?
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HOANGTHIANHTHU_invalid
- Posts: 189
- Joined: Fri Apr 05, 2019 5:15 pm
Documentary collection
Hi,
No benefit. I guess the collecting bank could have delivered the documents to the drawee based on the drawee's promise that he would pay in some days. Now that the drawee has failed to fulfil his payment promise, the collecting bank must try to delay the payment by creating forged cover letters.
Good luck.
Kind regards,
N.H.Duc
No benefit. I guess the collecting bank could have delivered the documents to the drawee based on the drawee's promise that he would pay in some days. Now that the drawee has failed to fulfil his payment promise, the collecting bank must try to delay the payment by creating forged cover letters.
Good luck.
Kind regards,
N.H.Duc
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AugustineArulnesan
- Posts: 17
- Joined: Fri Apr 05, 2019 5:16 pm
Documentary collection
Hi,
I would do the following in such a situation, before resorting to legal course of action.
A) Esclate the matter to highest authority of that bank, be it Chairman/MD of the bank, with all documentary evidence. (You have to do some research to get to the right person) If they are bothered about their reputation they will act.
B) If nothing happens then Complaint to the Central Bank of Egypt.
The above two actions would yield results. Legal Action should be the last resort.
Good Luck.
Regards
Rajan
P.S. I have heard form one of the staff of a Bank in Egypt that there is shortage of USD in Egypt and collection payment is delayed due to that.
I would do the following in such a situation, before resorting to legal course of action.
A) Esclate the matter to highest authority of that bank, be it Chairman/MD of the bank, with all documentary evidence. (You have to do some research to get to the right person) If they are bothered about their reputation they will act.
B) If nothing happens then Complaint to the Central Bank of Egypt.
The above two actions would yield results. Legal Action should be the last resort.
Good Luck.
Regards
Rajan
P.S. I have heard form one of the staff of a Bank in Egypt that there is shortage of USD in Egypt and collection payment is delayed due to that.
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HOANGTHIANHTHU_invalid
- Posts: 189
- Joined: Fri Apr 05, 2019 5:15 pm
Documentary collection
Dear Rajan,
Agreed that taking legal action is the last resort. We would also handle cases of non payment in the same manner as yours and receive payments eventually.
Best regards,
N.H.Duc
Agreed that taking legal action is the last resort. We would also handle cases of non payment in the same manner as yours and receive payments eventually.
Best regards,
N.H.Duc
Documentary collection
Would you consider issuing a letter, by your legal counsel, to the collecting bank's CEO and its legal and compliance officer?