IntaCapital Swiss SA is a boutique finance company head-quartered in the heart of Geneva, Switzerland and with representation world-wide.
The Swift system, (“Society for Worldwide Interbank Financial Telecommunications”), is a bank to bank platform for transmitting authenticated financial messages. Swift has a global membership of banks and financial institutions, and without which, many financial transactions, such as Collateral Transfer, could not be executed.
Where a company wishes to borrow or lease a Bank Guarantee, from another company, they will both sign a contract called a Collateral Transfer Agreement and it is where the owner of the Bank Guarantee, (referred to as the Provider), instructs their bank, (the Issuing Bank), to transfer by SWIFT, a Bank Guarantee, to another bank, (the Receiving Bank), favouring their client, (referred to as the Beneficiary).
For further information on the Provider, please see “Who Are Providers And What Are Their Benefits From Leasing Bank Guarantees”.
The Issuing Bank and the Receiving Bank have important roles to play within the Terms and Conditions of the Collateral Transfer Agreement. Both banks must carry out due diligence on the Collateral Transfer Agreement, and if successful the Issuing Bank then can utilise the bank to bank platform, Swift, to execute the Collateral Transfer Agreement.
It is important that the Provider and the Beneficiary ensure that both the Issuing Bank and the Receiving Bank are members of the Society for Worldwide Interbank Financial Telecommunications before entering into a Collateral Transfer Agreement. It is noted that prior to the Swift transmission of the Bank Guarantee, the Receiving Bank will receive a Swift pre-advice from the Issuing Bank confirming the impending arrival by Swift of the Bank Guarantee.