"BASEL III" Misunderstandings
To all dedicated followers of:
“You have to send us POP Upfront due to BASEL III”
The following statement is often brought to us and other Sellers trying to gather POP (most often by agents, brokers Fraudsters or just scammers) and afterwards run to a Buyer with the docs to get hold of his funds or instrument – just FLIPPING. We always reject their approach saying: “The Basel III framework requires this; otherwise we cannot send any SWIFT message”. This is basically fraud as it is not true. Here is the proof for it:
Please note, this is a copy of a fraudulent communication being sent around:
“27 August 2013
Please be aware that from Midnight ........... under the new Basel 3 banking laws for the top 100 world banks as issued by the Central Bank Europe, USA Federal Reserve, Bank of England, all in relation to Oil/Sugar/ Rubber/Certain Hard Woods etc.
All banks are now operating this new law, NO INSTRUMENTS CAN BE ISSUED UNTIL FULL AND PROPER VERIFICATION OF PRODUCT HAS BEEN PROVIDED BY THE SELLER, WHO MUST BE THE LEGITIMATE TITLE HOLDER AND MUST BE APPROVED BY THE BUYERS BANK.
This is in response to the International convention on INTERNATIONAL COMMODITY FRAUD in the above areas. Banks have 3 months to become FULLY COMPLIANT with the new regulations, should a bank fail to recognize the new legislation then the consequences are a fine of up to $10,000,000 (usd).
1) All offers NOW received by a buyer, its Directors/Mandates/Operational staff shall and will be REJECTED, that does not have fully verifiable POP in the form of Tank Receipts/ FULL SGS report and not just the back page. This will also include in the buying procedure the ability to perform a FULL DIP TEST on the product for bank verification.
2) Any offer received or presented that requires a NCNDA/IMFPA ahead of any POP shall and will be REJECTED
3) It is the responsibility of the receiver on behalf of a buyer to make sure that the offer fits the operating procedures of the buyer, THERE WILL BE NO EXCEPTIONS TO THIS PROCEDURE”
This “Basel III Conditions for any commodity trading” has been sent to the European Central Bank in order to confirm it. The official answer and their statement were very clear:
“Dear Mr XYZ,
Thank you for your e-
The European Central Bank (ECB) is the central bank for Europe's single currency, the euro. It's main task is to maintain the euro's purchasing power and thus price stability in the euro area. The ECB is in no way involved in the above-
We advise you to refrain from any contact with the originators of these messages and under no circumstance disclose personal information. Should you require further assistance, please do not hesitate to contact your local law enforcement authorities (e.g. police).
With kind regards,
EUROPEAN CENTRAL BANK
DG Communications and Language Services
Press and Information Division
We have nothing to add or comment. If a so called “Buyer” wants POP upfront, he is no real buyer and we will not get into any operation with him.