LC Transfer via MT720
Transfer part or all of a transferable MT700 LC to one or more second beneficiaries with a compliant MT720. Ideal for export aggregators, subcontracting chains, and multi-origin supply.
ICC / UCP 600 (Art. 38)
ISBP 745
SWIFT MT700 • MT720 • MT707
KYC/AML • Sanctions Screening
0.4–1.0%
Typical Transfer Fee
1–5 days
Usual Transfer Window
$250K+
Common Min Lot
200+
Institutional Links
🔄 How Does LC Transfer via MT720 Work?
- Original LC Issued (MT700) — with the word Transferable expressly stated.
- First Beneficiary Requests Transfer — defines amount, expiry, presentation period, partial shipment rights, etc.
- Transferring Bank Sends MT720 — to one or more second beneficiaries (can be partial or multiple).
- Second Beneficiary Ships — and presents documents under the transferred credit.
- Payment Flows — advising → issuing bank, with the first beneficiary’s substitution of invoice where allowed.
Under UCP 600 Art. 38, certain terms may be reduced (amount, unit price, expiry, latest shipment, presentation period) but core terms (e.g., goods description) must remain consistent.
🧾 Documents Required for MT720 Transfer
Base Pack
- Original Transferable LC (MT700)
- Transfer Instruction Letter (scope and beneficiaries)
- Commercial flow summary & Incoterms
KYC & Mandates
- First Beneficiary KYC & authority to transfer
- Second Beneficiary corporate docs & bank details
- UBO/ownership chart (where applicable)
Banking & Compliance
- SWIFT-enabled coordinates (IBAN/BIC)
- Sanctions screening & red-flag checks
- Substitution of invoice policy (if used)
🎯 When to Use an MT720 Transfer
Export Aggregators
Allocate one LC across multiple upstream suppliers while keeping commercial margin.
Subcontracting Chains
Prime contractor transfers to specialist vendors on the same project.
Multi-Origin Supply
Split shipments by geography, factory, or seasonality.
Back-to-Back Alternative
Avoid issuing a separate LC when original LC is transferable.
💵 Indicative Pricing
| Item | Typical Range | Notes |
|---|---|---|
| MT720 Transfer Fee | 0.4% – 1.0% | Per transferred amount; corridor & risk dependent |
| Amendment (MT707) | $250 – $1,000 | Per change; complexity-based |
| Advising/Transmission | $150 – $600 | Receiving bank fees |
| Document Checking | $150 – $750 | Per presentation |
We quote transparently prior to engagement. Compliance results may affect final pricing.
🧠 SWIFT Essentials for MT720
Core Fields
- 20 Sender’s Reference
- 21 Related Reference (original LC)
- 32B Currency/Amount (reduced if needed)
- 45A Description of Goods
- 46A Required Documents
- 47A Additional Conditions
- 48 Period for Presentation
- 49 Confirmation Instructions
- 57A Advise Through Bank
- 71B/72 Charges / Sender-to-Receiver
What Can Change (Art. 38)
- Amount / unit price — can be reduced
- Expiry & latest shipment — can be shortened
- Presentation period — can be reduced
- Invoice substitution by first beneficiary — if allowed
What Cannot Change
- Core goods scope & key conditions
- Governing rules and LC nature
- Beyond-original expiry/amount extensions
🌐 Banks Supporting MT720 Transfers (30+ Illustrative)
Selection depends on corridor, tenor, deal size, and compliance profile. Ranges are indicative.
| Bank Name | SWIFT | Advantages | Transfer Fees | Transfer Time | Min. | Region |
|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | Seamless MT720 ops | 0.5–1.0% | 1–4d | $1M | Asia |
| BNP Paribas (HK) | BNPAHKHHXXX | EU–Asia transfers | 0.4–0.8% | 2–5d | $1M | Asia/EU |
| Bank of China (HK) | BKCHHKHHXXX | Strong Asia lanes | 0.5–1.0% | 2–5d | $1M | Asia |
| Standard Chartered (Dubai) | SCBLAEAD | MENA hub | 0.5–1.0% | 2–5d | $500K | MENA |
| Mashreq Bank (UAE) | BOMLAEAD | Agile trade desk | 0.4–0.9% | 2–5d | $500K | MENA |
| DBS (Singapore) | DBSSSGSG | SEA expertise | 0.5–1.0% | 1–4d | $1M | APAC |
| UOB (Singapore) | UOVBSGSG | Efficient ops | 0.5–1.0% | 2–5d | $1M | APAC |
| OCBC (Singapore) | OCBCSGSG | APAC trade | 0.5–1.0% | 2–5d | $1M | APAC |
| MUFG (Japan) | BOTKJPJT | Japan/APAC lanes | 0.5–1.0% | 2–5d | $1M | APAC |
| Mizuho (Japan) | MHBKJPJT | Commodity flows | 0.5–1.0% | 2–5d | $1M | APAC |
| SMBC (Japan) | SMBCJPJT | Manufacturing chains | 0.5–1.0% | 2–5d | $1M | APAC |
| J.P. Morgan (NY) | CHASUS33 | Global reach | 0.5–1.0% | 1–4d | $1M | Global |
| Citibank | CITIUS33 | Correspondent depth | 0.5–1.0% | 2–5d | $1M | Global |
| Bank of America | BOFAUS3N | USD corridors | 0.5–1.0% | 2–5d | $1M | US |
| Wells Fargo | On Request | Trade ops | 0.5–1.0% | 2–5d | $1M | US |
| Deutsche Bank | DEUTDEFF | EU hub | 0.5–1.0% | 2–6d | $1M | EU |
| Commerzbank | COBADEFF | Reimbursement strength | 0.5–1.0% | 2–5d | $500K | EU |
| Société Générale | SOGEFRPP | EU/Africa coverage | 0.5–1.0% | 2–6d | $1M | EU |
| Crédit Agricole CIB | AGRIFRPP | Structured DCs | 0.5–1.0% | 2–6d | $1M | EU |
| ING | INGBNL2A | Benelux strength | 0.5–1.0% | 2–6d | $500K | EU |
| Rabobank | RABONL2U | Agri supply chains | 0.5–1.0% | 2–6d | $500K | EU |
| ABN AMRO | ABNANL2A | Commodity houses | 0.5–1.0% | 2–6d | $500K | EU |
| Barclays (UK) | BARCGB22 | UK transfers | 0.5–1.0% | 2–5d | $500K | UK |
| NatWest (UK) | NWBKGB2L | Domestic/intl mix | 0.5–1.0% | 2–5d | $500K | UK |
| Santander | BSCHESMM | EU↔LatAm lanes | 0.5–1.0% | 2–6d | $500K | EU/LatAm |
| BBVA | BBVAESMM | Spain/LatAm | 0.5–1.0% | 2–6d | $500K | EU/LatAm |
| UniCredit | UNCRITMM | EU manufacturing | 0.5–1.0% | 2–6d | $500K | EU |
| Intesa Sanpaolo | BCITITMM | Industrial Italy | 0.5–1.0% | 2–6d | $500K | EU |
| UBS | On Request | CHF/EUR corridors | 0.5–1.0% | 2–6d | $1M | CH/EU |
| Nordea | NDEAFIHH | Nordics supply | 0.5–1.0% | 2–6d | $500K | Nordics |
| SEB | ESSESESS | Scandinavian trade | 0.5–1.0% | 2–6d | $500K | Nordics |
| PG Asia Investment Bank | AINEMY22 | Flexible intake | 0.5–1.0% | 2–6d | $250K | APAC |
| Dushanbe City Bank | LCMDTJ22 | Frontier access | 0.5–1.0% | 3–7d | $250K | CA |
| Asia Pacific Investment Bank | ASPMMYKL | Recurring trade | 0.5–1.0% | 2–5d | $300K | APAC |
| Digital Commercial Bank | On Request | Digital onboarding | 0.5–1.0% | 1–4d | $300K | US |
| Credit Foncier IM UND Export GmbH | CFEGDE82 | EU compliance | 0.6–1.0% | 2–6d | $500K | EU |
| Sapelle International Bank Liberia | GNERLRLM | Frontier support | 0.5–1.0% | 3–7d | $250K | Africa |
| Unibanque (UK) | UNBQGB22 | SME corridors | 0.5–1.0% | 2–6d | $500K | UK |
| Al-Amanah Islamic Inv. Bank (PH) | AIIPPHM1XXX | Sharia-compliant | 0.5–1.0% | 2–6d | $250K | APAC |
| Point Bank (UK) | POITGB21 | Agile setup | 0.5–1.0% | 2–5d | $300K | UK |
| ACE Investment Bank (MY) | AIBMMYKL | Rapid transfer | 0.5–1.0% | 2–5d | $250K | APAC |
| Tabarak Investment Capital (UAE) | TIBIAEADXXX | Structured finance | 0.5–1.0% | 2–5d | $250K | UAE |
| United Bank for Investment (IQ) | UNTVIQBAXXX | Regional flows | 0.5–1.0% | 3–7d | $250K | MENA |
| Golden Touch Investment Bank | GTIVMT2LXXX | Custom clauses | 0.5–1.0% | 2–6d | $250K | Offshore |
| QNB (Qatar) | QNBAQAQA | GCC strength | 0.5–1.0% | 2–5d | $1M | MENA |
| First Abu Dhabi Bank | NBADAEAA | Project LCs | 0.5–1.0% | 2–5d | $1M | MENA |
| Emirates NBD | EBILAEAD | GCC trade | 0.5–1.0% | 2–5d | $500K | MENA |
| Standard Bank (South Africa) | SBZAZAJJ | Africa supply | 0.5–1.0% | 3–7d | $250K | Africa |
| Absa (South Africa) | ABSAZAJJ | Regional reach | 0.5–1.0% | 3–7d | $250K | Africa |
| Nedbank (South Africa) | NEDSZAJJ | Trade corridors | 0.5–1.0% | 3–7d | $250K | Africa |
| MCB (Mauritius) | MCBLMUMU | Indian Ocean hub | 0.5–1.0% | 2–6d | $250K | Africa |
| ABC Banking (Mauritius) | ABCKMUMU | SME-friendly | 0.5–1.0% | 2–5d | $250K | Africa |
Need a different corridor? We’ll match a suitable transferring/advising bank for your route.
🛡️ Risk Controls & Compliance
Document Integrity
- Draft review against UCP 600 & ISBP 745
- Consistent goods description (Field 45A)
- Clear, achievable shipment windows
Operational Safeguards
- Invoice substitution rules set up front
- Partial/multiple transfers tracked centrally
- Advising bank alignment before shipments
Compliance
- KYC/AML & sanctions screening on all parties
- Export controls & dual-use checks where applicable
- Audit trail of all SWIFT messages
🧭 MT720 Transfer vs Alternatives
| Instrument | Purpose | Best For | Control | Cost |
|---|---|---|---|---|
| MT720 Transfer | Pass LC rights to supplier(s) | Aggregators/subcontracting | High (first beneficiary) | Low–Mid |
| Back-to-Back LC | Issue new LC against original | Complex multi-party deals | Very High | Mid–High |
| Assignment of Proceeds | Assign proceeds only | Finance without transfer | Medium | Low |
| Red/Green Clause LC | Pre-shipment advances | Working capital before ship | Medium | Mid |
📌 Case Study — Multi-Supplier Textile Export
Challenge: EU buyer issues a transferable LC to a trading house sourcing from 4 factories across two countries.
Solution: NNRV structured an MT720 split across four second beneficiaries with reduced unit prices and harmonized shipment windows. Invoice substitution enabled margin protection.
Outcome: All four presentations complied at first attempt; payment consolidated to the issuing bank with clean audit trail.
💬 Client Reviews (10)
EuroTextiles★★★★★
Four-way transfer executed in 72h. Clear rules on invoice substitution.
GCC EPC★★★★★
Subcontractor transfers aligned with project milestones—zero disputes.
APAC Components★★★★☆
One minor amendment; otherwise smooth and fast.
LatAm Agro★★★★★
Split transfers by harvest windows saved logistics headaches.
Baltic Steel★★★★★
NNRV matched the right transferring bank for our corridor.
Maghreb Pharma★★★★★
Flawless document checklists—first presentation paid.
Andes Infra★★★★★
Back-to-back avoided thanks to a smart transfer design.
Iberia Energy★★★★★
Harmonized shipment dates reduced storage risk.
Pacific Commodities★★★★★
Perfect MT720 wording, no downstream confusion.
Central Africa Mining★★★★★
Multi-country vendor base handled with care and speed.
❓ Frequently Asked Questions (15)
1) What makes an LC “transferable”?
It must explicitly state “Transferable” under UCP 600, allowing the first beneficiary to transfer rights to a second beneficiary.
2) Can I transfer to multiple suppliers?
Yes—full or partial amounts can be transferred to multiple second beneficiaries if permitted by the LC.
3) Can I reduce the price or amount?
Yes. Amount, unit price, expiry, latest shipment, and presentation period may be reduced when transferring (Art. 38).
4) Can goods description be changed?
No, the core goods description must remain consistent with the original LC.
5) What about invoice substitution?
Often allowed for the first beneficiary to substitute their invoice/ draft in place of the second beneficiary’s, if the LC permits.
6) Is confirmation added during transfer?
Usually no. Confirmation status follows the original LC; added confirmation is a separate arrangement.
7) Can a non-transferable LC be transferred?
No. If non-transferable, consider back-to-back LC or assignment of proceeds.
8) How fast is MT720 issuance?
Once the transfer pack is complete, 1–5 business days is typical.
9) What are common discrepancies?
Late shipment, inconsistent packing lists, missing insurance terms, or misaligned transport documents.
10) Can partial shipments be allowed?
Yes, if the original LC allows them and the transfer instructions keep them enabled.
11) Can we amend after transfer?
Yes via MT707; all beneficiaries affected must be managed accordingly.
12) Do you help pick the transferring/advising bank?
Yes. We match the corridor, goods, and timeline to suitable institutions.
13) Are sanctions checks mandatory?
Yes, for all parties and goods; transactions failing compliance are declined.
14) Can proceeds be assigned instead of transfer?
Yes; assignment of proceeds gives payment rights without transferring documentary obligations.
15) What’s the minimum transaction size?
Commonly $250k–$1m per transferred lot, depending on bank and corridor.
📮 Request an MT720 Transfer
This page is informational. Final terms depend on issuer approvals and compliance outcomes.