The offer arrives through a chain of introductions. A "provider" will lease you a standby letter of credit from a top-rated bank; once it arrives by MT760, a "monetiser" will lend you most of its face value to buy your cargo. You pay only a modest fee upfront, and the slot closes on Friday.
Short answer: no genuine standby letter of credit or bank guarantee can be leased, rented or bought to raise working capital, and "monetising" one that someone else lends you is not trade finance. A real standby is a bank's promise to pay if its own customer, the applicant, fails to pay or perform, backed by that customer's credit; nobody can hand it to a stranger for a fee. The FBI states that standbys "are not traded or bought and sold" and advises against attempting to buy or invest in one (FBI IC3, fictitious standby letters of credit, 18 March 2019). If you have been asked for a fee before any funds appear, stop paying.
For how a genuine standby is used, drafted and priced, see standby letters of credit for commodity buyers.
What the offer usually looks like
- The wording. A "BG/SBLC" from a named large bank, "leased" for a year and a day, delivered "by MT760". The Institute of International Banking Law & Practice reproduces a typical offer with a "Leasing Price" and a "Sale Price" quoted as a percentage of face value (IIBLP, prime bank investment scams).
- The fees. A headline price payable "on delivery", plus smaller fees payable now.
- The urgency. Limited slots, a non-disclosure agreement and a rule that you must not contact the bank.
- The promise. Cash through "monetisation", sometimes as a "non-recourse" loan you need not repay.
The FBI's list of indicators includes returns disproportionate to risk, "non-recourse" or "forgivable" loans, "proof of funds" using an MT 799 or MT 760, an advance fee before funding, unnecessary secrecy, attorney escrow accounts and the term "monetize" (FBI IC3, 2019).
What an MT 760 actually is
Swift describes itself as "solely a carrier of messages between financial institutions" and says it "does not hold assets nor manage accounts on behalf of customers" (Swift, fighting illegal financial activities).
The MT 760 is the Swift message type named "Issue of a Demand Guarantee/Standby Letter of Credit". Swift's Category 7 documentation describes it as sent by the party that issues or advises an undertaking, either to a beneficiary that is itself a financial institution or to an advising party, and between banks for counter-guarantees (Swift, Category 7 advance information, February 2022). Companion messages carry amendments (MT 767) and demands (MT 765). The MT 799 in the same category is a "Free Format Message".
Three consequences follow:
- An MT 760 moves between banks. A trader does not "receive an MT760"; a bank does, and it then advises the instrument to its customer.
- The message is not the money. It carries an undertaking to pay on conditions, not a transfer of funds.
- A screenshot proves nothing. Swift says the information in its messages "is issued and controlled exclusively by the sending and receiving institutions". A PDF that looks like one is a document from whoever sent it; the FBI notes the use of counterfeit messages "such as 'MT 799' or 'MT 760'" (FBI IC3, 2019).
Why a contingent obligation cannot be rented
A standby involves three parties. The applicant asks its bank to issue it; the issuer promises to pay; the beneficiary may draw if the applicant defaults. ICC Academy describes the issuer as considering the applicant's credit rating and its ability to perform the underlying contract, with banks typically requiring collateral or establishing credit lines (ICC Academy, guide to standby letters of credit, June 2021). The FBI says a standby "is treated as if it were a loan" (FBI IC3, 2019). US regulation, for example, combines standbys issued by insured state nonmember banks with loans when applying legal lending limits (eCFR, 12 CFR 337.2); other jurisdictions have their own rules.
Now apply that to a "lease":
| Question | Genuine standby from your bank | "Leased" standby |
|---|---|---|
| Who is the applicant? | You, under your own credit facility | A "provider" you have never met |
| Whose credit backs it? | Yours, assessed by your bank | The provider's, lent to a stranger |
| What does it support? | A named obligation in a real contract | Nothing; it exists to be "monetised" |
| Who is the beneficiary? | Your counterparty, who may draw on default | A lender or "monetiser" found by the broker |
| Who is paid the fee? | The issuing bank, for taking your credit risk | Intermediaries, before anything is issued |
| If a draw is paid, who reimburses the bank? | You | The provider, for a debt that is yours |
The last row settles it. A bank recovers any draw from the applicant, so a provider who "leased" you a standby would be promising to repay its full face value if you defaulted, in exchange for a few per cent. Nobody with that capital lends it to a borrower no bank will lend to.
The fee-extraction sequence
The fees are the product, and they follow a recognisable order:
- Application or due-diligence fee. Small enough to seem reasonable, framed as covering the provider's costs.
- "Swift fee" or "transmission fee". Said to pay for an MT 799 "pre-advice" or for the bank to send the MT 760. Bank charges are billed by banks to their own customers.
- "Escrow". Part of the headline price is paid into an account described as escrow, often held by a lawyer. The SEC warns that promoters misrepresent escrow as protection for investors' funds (SEC, prime bank investments are scams, 5 February 2015).
- The problem fee. Compliance has "flagged" the file, the bank needs "insurance", or a tax must be paid before release. The FBI lists "intricate explanations and excuses" for why funds have not arrived as an indicator (FBI IC3, 2019).
This is advance fee fraud as the SEC describes it: a fee paid "up front", before any proceeds, "in order for the deal to go through" (SEC, advance fee fraud alert, 9 September 2014).
Language that recurs
None of these terms turns a promised instrument into financing:
- "Non-depletable". A standby that can never be drawn protects nobody; one that can be drawn exposes its applicant.
- "Non-transferable", "assignable", "divisible". ICC's Financial Investigation Bureau has warned that fake guarantees describe themselves as "divisible, assignable and transferable", while in most cases genuine guarantees are not unless expressly stated (ICC Commercial Crime Services, FIB warns of fake bank guarantees, 24 August 2004).
- "Fresh cut", "seasoned", "one year and one day". The same FIB warning cites "blocked for one year and one day" as a red-flag phrase.
- "Tear sheet", "proof of funds", "blocked funds". A statement that funds exist or are "blocked" commits no one to pay you. The US Treasury Office of Inspector General says letters asserting that blocked funds are "clean, and of non-criminal origin" have "no use in legitimate banking circles" (US Treasury OIG, prime bank investment fraud, updated 20 November 2024).
- "MT799 pre-advice". Whatever text a free-format MT 799 carries, it is not the message type for issuing a standby.
- "ICC rules", "approved by the central bank". The FIB warning cites "agreement in accordance with ICC rules on non-circumvention and non-disclosure" as a red-flag phrase. The SEC treats claims that the World Bank, the IMF, a central bank or the ICC issues, trades or guarantees the instrument as a warning sign (Investor.gov, "prime bank" investments). The Federal Reserve Bank of New York stated that the Federal Reserve "does not participate in any manner" in such programmes (FRBNY, circular 10858, 19 June 1996).
Why a real bank will not take your call, and what the broker says about it
Suggest phoning the named bank and the broker will object: the programme is confidential, the bank will deny it, and your call will "burn" the provider. The denial is presented as proof of exclusivity.
The simpler explanation is that there is nothing to discuss. A bank that has issued a standby deals with its applicant and, through the advising bank, with its beneficiary. A third party asking about a lease has no relationship to confirm. The Treasury OIG states that "there are no 'secret' markets in which banks trade securities" (US Treasury OIG, 2024), and the FBI lists "improper references to legitimate financial institutions without their knowledge or consent" (FBI IC3, 2019). If you contact a bank, use details you found yourself.
What you were actually looking for
A trader who needs working capital for a cargo usually needs one of these, from a provider that assesses the trade and the trader:
| Need | Legitimate route | What the provider looks at |
|---|---|---|
| Cash to buy goods before shipment | Pre-shipment or export working capital finance | Your contract, inventory, receivables and track record |
| Cash before an overseas buyer pays | Receivables finance, invoice discounting or factoring | The buyer's credit and the invoice |
| A payment promise the seller will accept | A letter of credit or standby issued by your own bank | Your credit, within a facility |
| Assurance the buyer will pay you | A letter of credit from the buyer's bank, possibly confirmed | The issuing bank and country risk |
The US International Trade Administration describes export working capital finance as funding materials, labour and inventory for export orders, usable also to "secure standby letters of credit" and usually secured by receivables and inventory; export factoring is a factor buying foreign receivables at a discount (ITA, Trade Finance Guide, 2022). Terms elsewhere differ, but a genuine standby always comes from your own bank's assessment of you. For choosing between documentary instruments, see documentary collection or letter of credit.
If you have already paid: the first three actions
- Stop paying. The next request will be presented as the last. Keep every message, document and account detail.
- Call your bank now. Ask whether the transfer can be recalled and give it the receiving account details. Speed matters; the steps are set out in payment redirection fraud in trade.
- Report it. In the US, the FBI asks victims to contact their local field office and file with IC3 (FBI IC3, 2019). In England, Wales and Northern Ireland, Report Fraud (reportfraud.police.uk, 0300 123 2040) replaced Action Fraud from December 2025; residents of Scotland contact Police Scotland on 101 (City of London Police, Report Fraud launch). Elsewhere, use the national police or fraud reporting service.
Realistic limits. Money sent days ago may already have moved on, and a report does not guarantee recovery. Civil recovery through asset-tracing lawyers is sometimes possible but costly. Be wary of anyone who contacts you offering to recover the loss for an upfront fee; the SEC warns that fraudsters target people who have already lost money (SEC, 2014).
Worked example: the fee schedule alone
Hypothetical teaching example. All parties, figures and fees are invented; no real bank, broker or company is described. CU = currency units.
A fertiliser trader is offered a 5,000,000 CU standby "leased" for one year at 5% of face value (250,000 CU), plus a 1% broker commission (50,000 CU). A monetiser will then advance 60% of face value, 3,000,000 CU. The payments requested before any instrument appears:
| Stage | Stated purpose | Amount (CU) | Paid to | Reaches an issuing bank? |
|---|---|---|---|---|
| 1 | Application and due diligence | 15,000 | Broker's company | No |
| 2 | "Swift fee" for MT799 pre-advice (0.4% of face) | 20,000 | Provider's "agent" | No |
| 3 | "Escrow" deposit: half the lease price | 125,000 | Lawyer's client account named by provider | No |
| 4 | "Compliance insurance" after a delay (1% of face) | 50,000 | Newly named "insurer" | No |
| Total paid | 210,000 | Nothing |
The total is 4.2% of face value. The remaining 175,000 CU, due "on delivery", is never reached, because each stage produces the next. No bank takes the trader's credit risk or receives a fee.
Test the economics as if the lease were real. The provider would receive at most 250,000 CU for promising to repay 5,000,000 CU on default: it comes out ahead only if the chance of an unreimbursed draw is below 5% (250,000 ÷ 5,000,000), for a borrower renting credit because no bank would extend it. The offer depends on fees, not on the instrument.
Common mistakes
- Treating an MT 760 screenshot or PDF as evidence that a bank has committed anything.
- Paying a "small" first fee on the basis that the real cost comes only on delivery.
- Accepting an account described as escrow without knowing who controls it.
- Agreeing not to contact the named bank.
- Paying a recovery agent after the loss.
Limits and what to recheck
This article describes a pattern; it does not assess any particular offer or party. Genuine standbys and demand guarantees are common. The warnings cited are dated; the FBI, SEC, Treasury and FRBNY material is US, Report Fraud covers England, Wales and Northern Ireland, and other jurisdictions have their own regulators and reporting channels. Swift message definitions change with standards releases. Any civil claim belongs with a lawyer in the relevant jurisdiction. This is general information, not legal or financial advice.
FAQ
What is an MT760 bank guarantee? MT 760 is the Swift message a bank uses to issue a demand guarantee or standby letter of credit, usually to another bank. The guarantee is the bank's undertaking; the message only carries it.
How do you convert an MT760 to cash? You do not. A genuine standby pays its beneficiary only on a complying demand, usually after the applicant defaults. Offers to "monetise" one are an advance-fee pattern.
Is SBLC leasing ever legitimate? No. The FBI states that standby letters of credit are not traded or bought and sold (FBI IC3, 2019), and a genuine standby is issued only on the applicant's own credit with its own bank.
Can I verify an MT760 someone sends me? Only through your own bank, which can say whether it received an authenticated message addressed to it. A copy sent by a broker cannot be verified by looking at it.
Next step: related reading
Before replying to any offer, read standby letters of credit for commodity buyers to see what a genuine standby from your own bank involves.
Resources
- FBI Internet Crime Complaint Center — FBI warns of fraud actors scamming investors through fictitious standby letters of credit (18 March 2019) — https://www.ic3.gov/PSA/2019/PSA190318 (accessed 23 September 2026)
- Swift — Fighting illegal financial activities — https://swift.com/about-us/legal/compliance/swift-and-fatf (accessed 23 September 2026)
- Swift — Standards Category 7: Documentary credits and guarantees/standby letters of credit, advance information for Standards MT November 2022 (25 February 2022) — https://www.swift.com/swift-resource/251812/download (accessed 23 September 2026)
- ICC Academy — A comprehensive guide to standby letters of credit (24 June 2021) — https://academy.iccwbo.org/trade-finance/article/a-comprehensive-guide-to-standby-letters-of-credit/ (accessed 23 September 2026)
- US eCFR — 12 CFR 337.2, standby letters of credit — https://www.ecfr.gov/current/title-12/chapter-III/subchapter-B/part-337/section-337.2 (accessed 23 September 2026)
- ICC Commercial Crime Services — FIB warns of fake bank guarantees (24 August 2004) — https://icc-ccs.org/fib-warns-of-fake-bank-guarantees/ (accessed 23 September 2026)
- Institute of International Banking Law & Practice — Prime bank investment scams — https://iiblp.org/blogs/news/beware-of-prime-bank-investment-scams (accessed 23 September 2026)
- US SEC (Investor.gov) — Investor alert: "prime bank" investments are scams (5 February 2015) — https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/investor-57 (accessed 23 September 2026)
- US SEC (Investor.gov) — "Prime bank" investments — https://www.investor.gov/protect-your-investments/fraud/types-fraud/prime-bank-investments (accessed 23 September 2026)
- US SEC (Investor.gov) — Investor alert: be on the lookout for advance fee fraud (9 September 2014) — https://investor.gov/additional-resources/news-alerts/alerts-bulletins/investor-alert-be-lookout-advance-fee-fraud (accessed 23 September 2026)
- US Department of the Treasury, Office of Inspector General — Prime bank investment fraud (updated 20 November 2024) — https://oig.treasury.gov/Scams/Prime-Bank-Investment-Fraud (accessed 23 September 2026)
- Federal Reserve Bank of New York — Investment scheme advisory alert, circular 10858 (19 June 1996) — https://www.newyorkfed.org/banking/circulars/10858.html (accessed 23 September 2026)
- US International Trade Administration — Trade Finance Guide (2022 edition) — https://www.trade.gov/sites/default/files/2022-07/Trade_Finance_Guide_2022.pdf (accessed 23 September 2026)
- City of London Police — Report Fraud service goes live with full public launch in January 2026 — https://www.cityoflondon.police.uk/news/city-of-london/news/2025/december/report-fraud-service-goes-live-with-full-public-launch-in-january-2026/ (accessed 23 September 2026)
