Third-Party Proof Of Funds Letters For Limited-Purpose, Non-Commitment Verification

Legal Character Of The Proof Of Funds Letter

Mandatory Disclosures And Reliance Limits

• You must disclose to counterparties that the balance referenced belongs to a third-party liquidity provider and is subject to the provider’s sole control.
• The letter is non-assignable and non-transferable. It may not be used to solicit deposits, sell securities, or market financing.
• Reliance is limited to existence of the stated balance on the value date. No reliance is granted regarding the provider’s future willingness to fund any transaction.
• If a counterparty requires a payment undertaking, a bank-issued standby letter of credit or guarantee is the appropriate instrument. We can arrange that under a separate mandate.

Permitted Use Cases

• Early-stage mergers and acquisitions processes that request evidence of liquid capacity prior to exclusivity
• Bid submissions and vendor onboarding where a limited verification letter is acceptable
• Counterparty compliance reviews that allow third-party balance confirmation in lieu of interim audited statements

Issuance Formats We Coordinate

Core Wording Elements

• Provider name, depository bank, branch coordinates, officer or desk contact, and reference number
• Currency, amount, value date, and a clear statement that the funds are unencumbered in the provider’s account
• Purpose limitation, non-transferability, and expiry date
• Verification pathway by phone and bank email. Any authenticated interbank message only where both banks permit it

Verification Pathways Available To Counterparties

• Call-back using the depository bank switchboard to the named officer or desk
• Email confirmation from a bank domain to a registered counterparty address
• Voice-of-bank session scheduled through compliance
• Authenticated interbank message where policy and relationships allow it

Process And Controls

1. Intake. We confirm the intended use, jurisdiction, amount, and required verification method. We screen for prohibited uses.
2. KYC Package. We complete corporate and beneficial owner checks, sanctions screening, and source-of-fees verification.
3. Draft Wording. We circulate draft text that includes mandatory disclosures and reliance limits.
4. Allocation. The liquidity provider allocates funds for the validity window. The depository bank contact is assigned.
5. Issuance And Verification. The letter is released and verification channels are activated for the stated period.

Eligibility And Required Information

Timing And Fees

Typical completion is two to five business days after a complete compliance file and agreed wording. Pricing depends on amount, tenor, jurisdiction, and verification path. No issuance proceeds without written acceptance of the disclosures and reliance limits.

Prohibited Uses

• Monetisation schemes or attempts to borrow against the letter
• Substituting the letter for a payment instrument or credit facility
• Marketing to investors or solicitation of deposits
• Any use that conceals the third-party nature of the referenced funds

We source Proof of Funds from vetted liquidity providers and regulated escrow agents. All engagements are subject to know your customer, anti-money-laundering, and sanctions screening. The letter is for limited-purpose verification only and does not constitute a commitment to lend, a payment undertaking, or an offer of securities. Nothing in this page is legal, tax, or investment advice.