Now in the process of transactions banks often asks our Clients to provide documents certifying lawful payment, mainly agreement between the payer and the beneficiary and certificate of rendering services/goods delivery (if the agreement provides for payment deferral). In case of any suspicions, the bank may request for additional documents and explanations – in fact it freezes account and commits no transactions until it receives information from the client.

Our Client, a freight forwarder, faced a similar problem when its bank requested for additional documents certifying relations between the payer of invoice for rendered forwarding services and the parties indicated in the Bill of Lading.

That’s quite a logical request on bank’s side, but there is still one question: why the payer makes payment for cargo transportation not being a party thereto? With regards to specifications of freight forwarding and international trade, this is a widespread practice when the customer of forwarding services has no legal relations with companies indicated in the Bill of Lading.

Therefore, our lawyers had to prove that the Client is doing real business, as well as to prove impossibility to provide confirmation of legal relations between the payer and parties to the contract, based on specifications of freight forwarding activity. We justified that both the Client and the Forwarder acted under the service customer’s instructions and all of them had no legal instruments to receive documentary confirmation of relations between the customer and parties indicated in the Bill of Lading.

As the result, bank accepted our explanations and committed the necessary transactions, while the Client received proforma of reply to the bank for similar requests – an effective tool to be applied in its activity.

Correct communication with bank guarantees the company’s further successful activity. We highlighted that unclear bank reply to its request may serve as grounds for freezing accounts and even initiating criminal proceedings. In particular, see for details our article Have you already fixed business processes of your company in Poland?

Interlegal lawyer Olesya Ivanova, managed by associated partner  Karyna Gorovaya , drawn up explanations and reply to the Bank on providing additional documents.