IntaCapital Swiss, is famous for providing Collateral Transfer and Collateral Transfer Agreements, which provide Leased Bank Guarantees, from one party, (the Provider), to another, (the Beneficiary). However, these agreements could not be executed without the bank to bank platform, referred to a SWIFT, or the SWIFT system.
For further details on the Provider, please see “Who Are Providers And What Are Their Benefits From Leasing Bank Guarantees”.
SWIFT, (“Society for Worldwide Interbank Financial Telecommunications”), is an international bank to bank platform, utilised by member banks and financial institutions, for transmitting secure and authenticated financial messages to each other. The SWIFT system, is therefore responsible for sending and receiving Bank Guarantees, which are at the heart of a Collateral Transfer Agreement, as explained below.
Simply put, a Collateral Transfer Agreement is where the Provider instructs their bank, (the Issuing Bank), to transfer by SWIFT, a Bank Guarantee, to another bank, (the Receiving Bank), for the account of their client, the Beneficiary. However, the Issuing Bank and the Receiving Bank must due diligence the Collateral Transfer Agreement before executing the instructions contained therein, to ensure the agreement is compliant with local jurisdiction and international Financial Regulations.
It is incumbent on both the Provider and the Beneficiary to ensure that the Issuing Bank and the Receiving Bank are members of the Society for Worldwide Interbank Financial Telecommunications, as without membership, IntaCapital Swiss will be unable to provide either party with a Collateral Transfer Agreement.