SBLC PROCESS EXPLAINED: FROM DRAFT TO FULL ACTIVATION (WHAT MOST PEOPLE DON’T KNOW)
Many people think an SBLC becomes active immediately after MT760 is issued…
In reality, several critical steps must be completed before it is truly valid.
ACTUAL FLOW (STEP BY STEP)
STEP 1 – Buyer Applies for Draft SBLC
The buyer applies for a Draft SWIFT MT760 SBLC through the issuing bank.
STEP 2 – Draft Issued by Issuing Bank
The issuing bank prepares and releases the draft → the buyer forwards it to the seller.
STEP 3 – Seller Submits for Review
The seller forwards the draft to:
Receiving Bank / Beneficiary for preliminary review
STEP 4 – Receiving Bank Review
The receiving bank will:
Review the wording and structure
Request amendments (if required)
Or approve the draft
STEP 5 – Approval to Proceed with Final SBLC
Upon approval:
The seller will instruct the buyer to proceed with the Final SWIFT MT760 SBLC issuance
STEP 6 – Final SBLC Issued
The buyer provides a copy of the Final SBLC to the seller for verification.
STEP 7 – Submission to Receiving Bank
The seller forwards the final SBLC copy to:
Receiving Bank / Beneficiary for further processing
STEP 8 – Compliance & Regulatory Checks
The receiving bank will conduct:
AML / KYC verification
Internal compliance procedures
Central bank regulatory checksThis is a critical stage often overlooked
STEP 9 – Hard Copy Requirement
Once compliance is cleared:
The receiving bank will request the original Hard Copy SBLC via secure courier
STEP 10 – SBLC Activation
Only after:
Hard copy is received
All compliance checks are successfully completedThe SBLC is considered fully activated within the SWIFT system
KEY POINT
An SBLC is NOT automatically active upon MT760 issuance.
It must be:
Verified by the receiving bank
Cleared under AML/KYC regulations
Supported by the original hard copy
COMMON MISCONCEPTION
Many buyers assume:
Once the SBLC is issued = POP / PB should be released immediately
In reality:
POP / PB will only be released after:
Full verification by the receiving bank
Completion of compliance procedures
Confirmation of hard copy receipt
CLOSING
In international trade, success is not determined by speed… but by strict adherence to proper banking procedures.
CONTACT US FOR ASSISTANCE:
WhatsApp:
IR. Zaki
http://www.wasap.my/60192297179/OilPetroleum
.
(Mr. Saif)
http://www.wasap.my/60105375779/OilPetroleum
.
(Ms. Nur)
http://www.wasap.my/601129291396/OilPetroleum
.
Email:
gngroup.sb@gmail.com
admin@gngroupsupplies.com
sales.gngroupsb@gmail.com
.
Website:
https://www.gngroupsupplies.com/
https://gngroupsupplies.blogspot.com/