Monetizing Leased Bank Instruments & Swift Messages: MUST READ!
Over the last few months, I have received plenty of calls about monetizing leased instruments. This is disturbing, since I know that 99.9% of these deals end in lost money. In this short article, we will cover the most common scam in 2013, the “instrument monetization program“. If you haven’t heard of it by now, I’m sure you will soon. Unfortunately, it has spread amongst the broker community like a “plague”….
Steps of the “Monetization Scam”
1. The client looks for a way to attain project funding or enter private placement with less money than is actually required.
2. Broker introduces the idea of leasing a bank instrument/account using swift message confirmations (MT 799, MT 760, MT 103).
3. Broker claims that if the client pays a small fee for this leased asset/Swift MT 760/799/103/etc., a private lender will monetize it, which will fund their project or give them enough money to enter private placement.
4. Client sends fees to swift provider, thinking they can get a LOAN against the swift to fund project and/or enter private placement, BUT after it’s receipt, the 3rd party “monetization company” or “private placement platform” can not perform.
5. Provider & brokers keep the client’s money since they have provided the service stated in the contract. They then move on to the next client who is under the impression that leased assets/swift messages can be monetized. Big Money!
In most cases, the swift company will do whatever they need to sell their services. In fact, most of them will make is sound like it is very easy to “monetize” the swift message/leased asset. This is how the scheme is designed. If they provide you the swift message services and meet the contract, they can not be held liable if your other deal doesn’t work out.
In summary, this scam is predicated upon the misunderstanding of the monetization process. Think about it this way, if I was to lease a BMW to you, could you take it to the bank and get a loan against it? No, because I still hold the title. The reality is, leased bank instruments are no different. If you are leasing an instrument, it will never be an acceptable form of collateral for banks or private lenders. This is not some theory, it’s common sense…
Please do yourself a favor, and DO NOT get involved in these transactions. Whether you think it can work or not, it’s ALWAYS a waste of your time. The fact is, millions of dollars are lost every year due to this process. Hopefully, by reading this article, you can avoid the disaster before it’s too late…
InsideTrade LLC Staff