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What Is an Irrevocable Letter of Credit (ILOC)? An irrevocable letter of credit (ILOC) is a unique financial instrument utilized extensively in international trade transactions. It represents a guarantee issued by a bank, pledging to make payment on behalf of its client, the buyer, for goods or services, once specific
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What is Hawala? Hawala refers to an ancient and informal method of transferring money without physically moving it. It is also known as underground banking or a trust-based system for money transfers outside the formal banking sector. The term derives from the Arabic word for ‘trust’ or ‘exchange,’ while in
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Introduction: What is a correspondent bank? A correspondent bank is a financial institution that acts as an intermediary or agent, representing and providing services on behalf of another financial institution. This intermediary relationship is most commonly used by domestic banks when conducting international transactions, giving them access to foreign financial
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