Institutional Profile

Who may advise on letters of credit: an institutional framework

Many parties participate in documentary credit transactions: banks with undertaking roles, corporate treasuries, freight forwarders, law firms, inspectors and independent consultants. “Advising” on letters of credit can mean document presentation support, training, legal interpretation or operational messaging—each with different regulatory implications.

This article maps common participant roles in neutral terms. It does not state that any unregulated consultant may issue or confirm a credit, nor does it criticise legitimate advisory services.

Why it matters

SME exporters in particular may rely on non-bank advisers for LC documentation. Understanding who holds the undertaking versus who provides support services clarifies responsibility if discrepancies or fraud arise.

Key considerations

• Only institutions structured and authorised to issue or confirm typically assume the undertaking described in the credit.
• Consultants and law firms may advise on wording, compliance and presentation under their professional rules.
• Freight forwarders and agents may handle logistics documents but do not replace bank examination unless explicitly contracted within permitted scope.
• Verify whether messaging (e.g. SWIFT MT700 series) is sent bank-to-bank through authorised participants.
• Due diligence should cover authorisation, references, and clarity of service scope in writing.
• Educational content here is not legal advice and does not endorse specific advisers.

Source: ICC Banking Commission