We are aware that various individuals and entities are promoting fictitious financial transactions involving Standby Letters of Credit (SBLCs), Bank Guarantees (BGs), high-yield trading programs, and false monetization platforms.
These fraudulent schemes are often sophisticated and can mislead investors, intermediaries, or companies to participate in illegitimate transactions. The purpose of this page is to clearly warn all clients and third parties of common fraudulent practices circulating in the alternative finance and instrument-based capital markets.
No. The purchase or sale of a Bank Guarantee (BG) as a financial product is not legally permissible under established banking law and international financial regulation. Bank
Guarantees are non-negotiable instruments issued by a bank for a specific purpose and beneficiary, subject to defined terms and conditions. They are not transferable or tradable in the manner of securities or goods.
Any individual, company, or entity that claims to “sell” or “purchase” Bank Guarantees -particularly for speculative or investment purposes – should be treated with immediate caution.
Such representations typically indicate either:
• A misunderstanding of the legal nature of these instruments, or;
• An attempt to perpetrate financial fraud..
No. Bank Guarantees (BGs) are non-tradeable, non-transferable, and non-divisible financial instruments issued by regulated banking institutions to serve a specificcontractual or credit-related purpose. As such, they cannot be traded, sold, or otherwise utilized as negotiable instruments in capital markets or speculative financial programs.
Bank Guarantees do not carry a CUSIP, ISIN, or other securities identifier, as they are not investment products or instruments subject to exchange listing or securitization. The issuance of a Bank Guarantee is strictly governed by terms set forth in the original instrument and is legally restricted to the named beneficiary. It may not be reassigned, split, or transferred to any third party, nor used to underwrite any form of trading, investment platform, or high-yield financial program.
While Bank Guarantees cannot be traded, they may be utilized in legitimate financial structures to secure credit facilities or raise liquidity, such as:
• Loans;
• Lines of credit;
• Structured lending arrangements.
The Bank Guarantee itself does not serve as the investment, nor can it be used to access unauthorized platforms or off-market trading schemes.
No. Bank Guarantees (BGs) cannot be discounted in the traditional financial sense, as they are not negotiable, tradeable, or transferable instruments. Discounting typically refers to the practice of selling a financial asset (such as a bond or receivable) at less than its face value, in exchange for immediate liquidity – usually based on the asset’s maturity date and cash flow certainty. A Bank Guarantee, however, is not a cash-flow bearing instrument, nor is it intended for sale or transfer. Accordingly, it cannot be discounted under any recognized legal or financial standard.
The confusion often arises when a lender offers a credit facility – commonly referred to as a Loan-to-Value (LTV) – against a Bank Guarantee. For example, a lender may offer to extend financing equal to 90% of the face value of a Bank Guarantee. At a glance, this may appear similar to a 10% discount; however, it is not a discount in legal or financial terms.
In such a case, the Bank Guarantee is being used as collateral to secure a loan or credit line, consistent with its intended purpose. There is no transfer of ownership, no sale of the instrument, and no future value receivable to the Provider.
We do not engage in or support the promotion of so-called Private Placement Programs (PPPs) or Bullet Trading Programs which claim to generate returns of 10% to 50% per month, purportedly:
• Backed by central banks or global monetary authorities;
• Using leased SBLCs or BGs as collateral;
• Supervised by “platform traders” with special access to Tier-1 banks.
These programs are fictitious and are not recognized by any central bank, licensed financial institution, or securities regulator.
We do not guarantee the monetization of financial instruments under any circumstances.
All monetization arrangements are:
• Subject to credit approval;
• Based on the risk profile of the applicant;
• Structured under formal legal documentation.
Any claim of guaranteed monetization of a bank instrument – particularly when combined with promised timeframes or fixed returns – is a clear indicator of fraud.
SF Capital strongly warns against any financial arrangement involving the use of leased Standby Letters of Credit (SBLCs) or Bank Guarantees (BGs) to access so-called “Platform Trading”, “Private Placement Programs (PPPs),” or “Trade Platforms.”
Fraudulent intermediaries often promote structured finance programs where a client is asked to lease a financial instrument – typically for a one-year term – from a third-party“provider,” with the promise that the instrument will then be placed into a “platform” that generates exceptional, guaranteed returns (e.g., 10–30% per month).
These schemes often claim that:
• The platform is operated by an “exclusive Tier-1 trader” or “international investment desk”;
• The leased instrument will be monetized and used to trade discounted financial instruments;
• Profits will be shared between the client and platform manager;
• Regulatory oversight is provided by “top-tier banks,” the IMF, or a central bank (none of which is true).
• Leased financial instruments cannot be used for speculative trading or resale, as they are non-transferable and carry no inherent market value.
• No regulated financial institution participates in or recognizes such “trading platforms.”
• Central banks, global regulators, and licensed banks do not endorse programs offering guaranteed returns from private placement activities.
• Any promised “guarantee of monetization” or “risk-free trade” tied to a leased instrument is a clear red flag of financial fraud.
Many schemes reference outdated or non-existent transaction types, such as:
• KTT (Key Tested Telex);
• IPIP (Irrevocable Payable Instrument to Payable);
• MT103/23 (non-existent SWIFT format).
These terms are either obsolete or fictitious. No legitimate financial institution processes transactions using these formats in the modern banking system.