Proof of Funds Account Verification

Account verification for Proof of Funds Services

Every time a person goes to their ATM or banking branch to check the balance of their checking and savings bank accounts an inquiry is making account verification electronically. With proof of funds transactions account verification of cash assets and banking instruments via systems of interbank communication can differ from consumer banking. This type of Account verification is more often includes asset verification or financial instrument account verification.

In financial banking the term “Account verification” can refer to verification of so many different types of financial and cash asset classes the format and method of performing asset verification will vary. Of particular concern for those needing a proof of funds for trade finance and project finance are bank instruments such as letters of credit and cash-backed bank accounts needing Account verification, payment, and settlement via an interbank electronic communication.

Proof of Funds Verification of Assets

With bank instruments such as a standby letter of credit (SBLC), bank guarantee (BG), a letter of guarantee, or a certificate of deposit (CD), proof of funds verification is usually performed electronically through SWIFT. However, there are often times when a simple bank to bank fax, or bonded courier of the documents will do.

SWIFT and Proof of Funds Account Verification

SWIFT is a standardized electronic messaging interbank system used to settle and clear payments and financial exchanges between banks, central banks, and clearing houses. The standard Message Types (MT) the SWIFT system reserves for documentary letters of credit is under the MT700 series.

The message types often used for proof of funds and pre-advise (preliminary notice of a payment, delivery, or settlement) is MT799.

The standard free delivery of the letters of credit and other bank instruments are often achieved with full banking responsibility via MT760; literally communicating a binding bank guarantee of asset authenticity and delivery.

Proof of Funds Account Verification Letters and Documentation

Performing proof of funds account verification on cash assets held on deposit at a bank validating and confirming the availability of funds is achieved in a variety of ways: by a confirmation letter, verification letter- like a verification of deposit (VOD), bank statement or a tear sheet to name a few.

Proceed to Proof of Funds Procedures

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