Banking Instruments · 04
Proof of Funds
Bank-confirmed proof of funds supporting acquisitions and tenders.
MT799
SWIFT message
Typically 30 – 90 days
Validity
Bank-to-bank
Verification
Acquisitions, tenders
Use
Overview
About Proof of Funds.
A Proof of Funds is a bank-issued confirmation that funds are available to complete a transaction, commonly required in acquisitions and tenders.
Confirmations are issued on bank letterhead or via SWIFT MT799 and can be verified bank-to-bank.
- Bank comfort letters
- SWIFT MT799 confirmations
- Blocked-funds confirmations
- Tender support
Financial Overview
Activity and allocation.
Confirmations issued (files)
Banking Instruments allocation (%)
- SBLC 38%
- Bank guarantees 27%
- Documentary credit 22%
- Proof of funds 8%
- Other 5%
Year-on-year growth (files)
Indicative figures for illustration purposes. Past performance is not indicative of future results.
Legal & Regulatory Framework
Governed by clear rules.
ICC URDG 758
Uniform Rules for Demand Guarantees govern bank guarantees issued on a demand basis.
ICC UCP 600 & ISP98
Uniform Customs and Practice for Documentary Credits and International Standby Practices.
SWIFT MT760 / MT700 / MT799
Instruments are transmitted bank-to-bank through authenticated SWIFT messaging only.
Article L.561 CMF — AML / CFT
Full due diligence on applicants, beneficiaries and underlying transactions; no instrument without a genuine commercial purpose.
Risk Management
Risks identified and controlled.
| Risk | Mitigation |
|---|---|
| Counterparty risk | Issuance exclusively by licensed, rated banking institutions. |
| Documentary risk | Wording reviewed against ICC rules before issuance. |
| Fraud risk | Verification of every instrument through bank-to-bank channels. |
| Compliance risk | Sanctions screening and source-of-funds verification on every file. |
Legal Notice
This page is provided for information purposes only and does not constitute an offer, solicitation or recommendation to buy or sell any financial instrument or to enter into any transaction. Any engagement is subject to contractual documentation, satisfactory completion of KYC / AML procedures in accordance with articles L.561-1 et seq. of the French Code monétaire et financier, and the approval of the relevant banking institutions. Holding JMB SARL — RCS Paris 528 403 074.