Monetization is simply an offer to purchase the bank drafts / IBOES at a certain percentage of the FV of the bank draft / IBOE. The purchase is outright, hence, the deal is finished after the payment.
The following preliminary requirements (not limited to the list below as additional documents may be required) and procedures are strictly implemented:
1. Letter of confirmation from drawee bank for bank drafts, which should not be older than 3 days and UCC Financing Statement for IBOEs. If the BCL is older than 3 days, we will ask for an updated one.
2. Copy of the bank draft cheque / IBOE, which should be a minimum of 100M Euro / USD and issued by major European banks for BDs.
3. Passport copy of BD / IBOE holder.
4. Upon submission, all documents, which are not necessarily limited to the abovementioned requirements, shall be verified with drawee bank, FED, Interpol, etc. for due diligence.
5. After due diligence, a TTM is scheduled in Europe and a contract will be drafted and signed by concerned parties, based on agreed terms and conditions.
However, there is another option by which a client can transact. And this is by placing the funds, also equivalent to a certain percentage of the FV of the cheque, to a private trading program or Private Placement Program (PPP).
What is a 'Private Placement'? Investopedia defines private placement as ... "the sale of securities to a relatively small number of select investors as a way of raising capital. Investors involved in private placements are usually LARGE BANKS, mutual funds, insurance companies and pension funds. A private placement is different from a public issue, in which securities are made available for sale on the open market to any type of investor." [1]
In this case, the funds are endorsed to a PPP, which will normally run for 40 weeks with a yield of a certain percentage of the investment and will be paid on a weekly basis.
All the other requirements and procedures for bank draft / IBOE monetization are, likewise, applicable. In addition, the mechanics of said program shall be discussed in detail in the TTM, which will be scheduled after documents and holder undergo and pass due diligence.
Both options have their advantages and the client, if undecided, is free to explore these options at TTM, again to reiterate, only after due diligence.
The procedures are designed to filter fraudsters and scammers. Hence, there will never be any room for fraudulence and scams.
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POINTS OF CLARIFICATION:
ON PUBLICATION: Institutions, such as, Credit Suisse Group AG, Asian Development Bank and Bank of America, to name a few, publicize every time that they have PPPs. But privy to a select few are the mechanics of the PPPs, which should be left UNPUBLICIZED. This article is no different.
ON SOLICITATION: Technically, a solicitation is when I go knocking on someone's door to peddle my products. But an INFORMATION CAMPAIGN is not in this category, which the aforementioned institutions also embark on. When people choose to knock on my door, they are welcome but not everyone can come in. That is NOT solicitation. This is my space to write about what I do and I'm not encroaching on yours to solicit.
ON OPTIONS: Showing people options on financial derivatives, stocks or debts, whichever of the three categories of financial instruments that may be, is not a solicitation either. It is transparency, which is integral to honest business.
ON IMPLICATIONS: What you read as I seem to be implying may or may not be a fact as you see it as only an implication and not a matter-of-fact, direct statement. Hence, there will always be a 50% chance that you're reading it erroneously. So, please don't jump to conclusions without solid basis.
ON CONTENT: Content marketing principles dictate any material to be short, simple and open. Hence, what you read here would just be the very small tip of the iceberg of what's underneath. And taking this very short article as the entirety of the process would be unwise.
ON KNOWLEDGE: I do not claim to know more than I do or more than other people do. What I state here is as short as I can make it to be and to the best of my knowledge. And for skeptics out there, there is really no need to be rude, mean or arrogant to claim to know more than other people do, as there will always be somebody, somewhere, who will know more than you do.
ON LEARNING: I am a self-proclaimed "forever-student". The mind stagnates and ages if one rejects further learning. And if you have something for me to learn, please do not hesitate to approach me. But I would appreciate a constructive learning more than an outright defamation in attempts to discredit me or other people. This is just totally unprofessional.
ON PROFESSIONALISM: If you so choose to be unprofessional and to downright exhibit very lowly behavior, please "THINK BEFORE YOU CLICK", as they say, when you are in social media, where people have very watchful eyes. If you cannot speak or write in a professional or formal manner, how can you be expected to transact business professionally? What you write is reflective of what you are.
ON ACCUSATIONS: If you want to accuse me of anything, please be sure you have proof to back it up. LIBEL is a very serious offense and everything is recorded here.
ON COMMENTING: If you want an altercation with me, it's fine and I will answer you the best I can. But please avoid cursing and under-the-belt, personal, discriminative or racist remarks. This is purely business and has nothing to do with race, color or breed. I will not go down to that level with you. Let's keep this on a professional level.
ON CONFIDENTIALITY: For documentation, you may use our lawyer for confidential submissions. And we offer our lawyer's services to act as your TRUSTEE or AUTHORITY (POWER OF ATTORNEY) for your protection, as well, and charged to us. Our procedures provide protection of the identities of both monetizer and sender.
And thank you very much for your attention and comments.
[1] Private Placement Definition | Investopedia http://www.investopedia.com/terms/p/privateplacement.asp#ixzz4bTGzTYTc
