ADVISORY FOR CROSS BORDER TRANSACTIONS
Cross border transactions are sensitive in nature as they require zero error execution to comply with the regulatory requirements. If not so then the concerned may be impacted very adversely.
Also, there are strict compliance regulations to check misuse of funds like money laundering etc. We must admit that correct advice is the core to smooth execution of such transactions so that the initiator and the end beneficiary are both satisfied as well as the same are done in a fully compliant way. Simple transactions may get complicated and complicated ones may go through smoothly depending on the type of advice and guidance.
Foreign Exchange is a large umbrella covering different types of transactions. Each transaction has a different requirement of documents, process, and compliance criterion, as per the purpose of the transaction and the pertinent regulatory norms. Say, for example, sending money abroad, that is, Outward Remittance, may be for several different purposes. Same with receiving money, that is, Inward Remittance. Broadly it may be for trade purposes or non-trade purposes.
Again, within the broad section of trade or non-trade, each transaction has unique requirement for documents, process and compliance norms. In the same way, Trade Finance transactions and the products like Letter of Credit (LC), Bank Guarantee (BG) etc., may vary depending upon the nature of the underlying contract/order and so on. Depending on the product type each transaction has different requirement for documents, process, and regulations.
These products are very sensitively important as the liability undertaken therein by the issuer does not impact the financials immediately but later as and the payment under the same is due. For example, LC bills must be paid on the specified date or if the BG is revoked and must be paid in case of default.
As the borders have opened for investments, both inward and outward, Capital Account transactions have become very common but are very vulnerable as per documentary and regulatory requirements. The regulator, namely, Reserve Bank of India (RBI) has stringent compliance rules for capital account transaction to check and stop money laundering.
Correct advice and guidance are of utmost importance for such transactions. A simple error or omission may lead to a severely adverse impact on the concerned. In view of the fact that knowledge and advice are not easily available for Forex and Trade Finance – even if they are available, they are piecemeal, elaborating one type at one time or at one place – we have come up with our website, Shrigovindaforexntrade.com, to provide one point solution for all types of transactions at one place, product wise. We elaborately explain the product, clarify the intricacies involved in addition to specifying the requisite documents. You just have to click the keyword for the product you are looking for and it is promptly available.
The advisory is updated round the clock to include the latest knowledge about the product.