EURO EXIM BANK
Proof of Funds & Bank Comfort Letters
If you have been asked for a proof of funds, a bank comfort letter or a bank confirmation letter, you have been asked for the same document. Our letter carries all three names on its face. Different markets call it different things and there is no sense in pretending they are separate products.
What it says is that our client holds a stated sum with us, as funds or facilities, in a named account, as at the date it is written. It confirms those funds or facilities are good, clean and cleared, of non-criminal and non-terrorist origin, and free from any liens and encumbrances. That is the whole of it. The letter puts Euro Exim Bank under no obligation to pay anyone and there is nothing in it for a third party to draw on.
We draft each one for the situation it is going into rather than filling in a form. Who it is addressed to and how it is worded depend on who will be reading it and what they need to satisfy themselves about, so tell us that at the start.
The receiving bank can verify the letter through SWIFT, bank to bank. That matters more than it sounds. A forwarded PDF proves nothing at all, and a counterparty who wants certainty should be checking through their own bank rather than accepting a copy from the person who benefits from it.
Euro Exim Bank Ltd issues these letters from St. Lucia and London, based on the availability and liquidity of the funds or facilities involved. KYC is completed before issuance.
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Frequently asked questions
Does a proof of funds letter mean the bank will fund my transaction?
No. The letter confirms the funds or facilities held at the point it is written. It puts us under no obligation to pay anyone and there is nothing in it for a beneficiary to draw on. Where a transaction needs an undertaking a counterparty can actually rely on, what you want is a letter of credit, a standby letter of credit or a bank guarantee.
I was asked for a bank comfort letter, not a proof of funds. Which do I need?
The same one. Proof of funds, bank comfort letter and bank confirmation letter are three names for one document, and ours carries all three on its face. Whichever term you were given, this is the page.
Who is the letter addressed to?
Whoever needs to receive it. We draft each letter for the situation rather than filling in a template, so the addressee and the wording depend on who will read it and what they need to be satisfied about. Tell us that at the start and it saves a round.
How does the receiving party know it is genuine?
Their bank can verify it through SWIFT, bank to bank. Anyone being handed a letter by the person who benefits from it should be checking that way rather than accepting a forwarded copy, and we would say the same about a letter purporting to come from any bank, not just ours.
Do I pay KYC again for each product?
No. KYC is completed once. Having been through it for one product, you do not repeat it or pay for it again when you come back for another.