Introduction

In international trade, project finance, and major capital markets transactions, credibility and readiness are critical before any formal financial instrument is issued.
An RWA Statement (Ready, Willing, and Able Statement) serves as a bank confirmation that a client possesses the financial and legal capacity to engage in a proposed transaction — typically prior to the issuance of an SBLC, LC, or Bank Guarantee (BG).

While not a payment obligation, it acts as a comfort assurance that strengthens confidence between trading or financing counterparties.

Keywords: export-import assurance, M&A deals, project finance guarantees, capital readiness, international buyer confidence
Related terms: proof of funds, comfort letter, pre-transaction due diligence, MT799 message, financial credibility

I. Definition and Core Purpose of RWA Statements

An RWA Statement is a bank-issued confirmation affirming that a client is financially capable, willing, and authorized to complete a specific transaction.

It communicates three key conditions:

1. Ready — the client has passed compliance and documentation requirements.

2. Willing — the client has formally instructed the bank to proceed.

3. Able — the client has verifiable funds or instruments available to fulfill obligations.

This simple yet powerful message provides confidence and transparency in financial negotiations before instruments are formally transmitted.

II. Strategic Role in Trade and Project Finance

In cross-border trade, RWA statements often precede the issuance of instruments such as Standby Letters of Credit (SBLCs), Letters of Credit (LCs), or Bank Guarantees (BGs).

They serve as a signal of commitment and credibility, helping trading partners and financial intermediaries verify that a client is financially positioned to move forward.

Common Use Cases:

• Pre-validation for SBLC or BG issuance

• Buyer verification in commodity and export-import transactions

• Funding assurance for major infrastructure or project finance deals

• Investor confidence during mergers, acquisitions, or joint ventures

By providing early verification, RWA statements reduce risk and uncertainty, paving the way for faster execution and smoother negotiations.

III. Communication Method: SWIFT MT799

Authentic RWA statements are transmitted via the SWIFT network, using the MT799 message format, a free-format interbank communication tool.
This ensures the message is traceable, encrypted, and verifiable.

Example (Simplified Extract):

“We, [Bank Name], on behalf of our client [Client Name], confirm that our client is Ready, Willing, and Able to engage in the transaction under the agreed conditions. This message is transmitted for comfort and verification purposes only and does not constitute a financial guarantee or obligation.”

The use of SWIFT MT799 communication underscores institutional legitimacy and prevents manipulation or falsification.

IV. Legal, Compliance, and Regulatory Aspects

Although vital for transaction readiness, RWA statements carry no legal obligation to pay.
They are not binding guarantees and must be treated as informational assurances only.

Compliance Principles:

• Full KYC/AML verification of both buyer and seller before issuance

• Transmission via SWIFT MT799/MT199 authenticated channels

• Inclusion of explicit disclaimers clarifying non-guarantee status

• Adherence to banking and anti-fraud regulations in all jurisdictions

Banks issue RWA statements only after confirming funds availability, client authorization, and internal risk assessments.

V. Value in International Deal Structuring

RWA statements enhance efficiency and trust in complex financial arrangements by:

• Establishing preliminary financial assurance

• Accelerating due diligence and readiness checks

• Strengthening counterparty confidence before LC/SBLC/BG issuance

• Supporting investor and lender comfort in project finance negotiations

Their use significantly reduces communication friction, helping institutions align expectations and timelines before formal instrument deployment.

VI. Risks and Misinterpretations

RWA statements are occasionally abused in fraudulent schemes where false or non-bank documents are circulated.

Warning Indicators of Fraudulent RWAs:

• No SWIFT transmission or unverifiable message reference

• Use of non-bank letterhead or templates

• Lack of authorized signatures or BIC codes

• Overpromises of guaranteed funding without verification

Always confirm authenticity directly with the issuing bank and verify SWIFT message references before accepting any RWA as valid.

Conclusion

An RWA Statement is a strategic financial readiness tool—not a funding instrument, but a pre-transaction confirmation of legitimacy and preparedness.
It helps bridge trust gaps in international trade, project finance, and investment negotiations, fostering smoother collaboration between counterparties.

By understanding its purpose, legal limits, and verification methods, professionals can use RWA statements effectively to enhance credibility, speed up negotiations, and ensure compliance integrity across global finance operations.

FAQ — Role of RWA Statements in International Trade and Project Finance

Q1 — What is the main purpose of an RWA statement?
To confirm that a client has the financial and legal capacity to enter a transaction before formal issuance of instruments like LC, SBLC, or BG.

Q2 — Is it legally binding?
No. It is a non-binding financial comfort letter, not a guarantee or undertaking to pay.

Q3 — How is it communicated?
Via authenticated SWIFT MT799 messages between banks.

Q4 — When is it used?
Before major trade, project finance, or M&A transactions to establish financial readiness and credibility.

Q5 — How can authenticity be verified?
Through SWIFT confirmation, checking the issuing bank’s BIC, and verifying authorized signatories.