The Problem: In the digital age, buyers believe a PDF bank statement or a screenshot of an account balance constitutes “Proof of Funds” (POF). In the high-stakes commodity market, these documents are worthless.

The Reality: A screenshot proves nothing—it can be edited in seconds. Legitimate refineries and allocation holders rely exclusively on Bank-to-Bank Authentication via the SWIFT network.

This Guide Delivers:

• The mechanics of the SWIFT MT799.
• Why “Blocked Funds” are different from “Capability.”
• The exact verbiage legitimate sellers look for.
• How to avoid the “Soft Probe” trap.

Target Audience: Buyers, Intermediaries, Mandates
Reading Time: 6 Minutes

Table of Contents

1. The “Screenshot” Plague

If you email a PDF bank statement to a major Brazilian sugar seller, your email will likely be deleted immediately.

Why?

• Forgery Risk: A bank statement can be altered in Adobe Acrobat in 3 minutes.
• Privacy Violation: Sending unredacted bank account numbers via open email is a security risk.
• Temporal Irrelevance: A statement shows the balance at 9:00 AM yesterday. It does not prove the money is there today.

Manager’s Takeaway: Never send sensitive banking documents via email attachment. It marks you as an amateur.

2. The SWIFT MT799: The Only Truth

The MT799 is a “Free Format Message” sent between banks over the SWIFT network. It is an authenticated, encrypted communication. When Bank A sends an MT799 to Bank B, Bank B knows with 100% certainty that the message is genuine.

Data Snapshot: Screenshot vs. SWIFT

PDF / Screenshot:

• Authentication: None (Visual only).
• Cost: Free.
• Credibility: Zero.
• Result: Rejected by Compliance.

SWIFT MT799 / MT199:

• Authentication: Cryptographic Key Exchange.
• Cost: Bank Fees apply ($50 – $500).
• Credibility: Absolute.
• Result: Accepts allocation.

3. Blocked Funds vs. Capability

Not all Proof of Funds are created equal. Buyers must understand what the seller is asking for.

Proof of Capability (BCL)

A Bank Comfort Letter (BCL) or RWA (Ready, Willing, Able) letter. This states that the buyer has the financial capacity to execute the deal. The money is not locked; the bank simply confirms the client is good for it.

Blocked Funds

This is much stricter. The buyer instructs their bank to freeze a specific amount of money in their account for a specific duration in favor of the seller. This is rarely used in initial stages; the RWA is the industry standard for sugar allocation.

4. Red Flags: Video POF & Satoshi Tests

In the secondary market, you will encounter bizarre requests.

• “Video POF”: A seller asks you to login to your bank account while screen-recording. NEVER DO THIS. It is a massive security breach that can lead to account theft.
• “Satoshi Test”: Sending a small amount of Bitcoin to prove a wallet is active. This has no place in legitimate commodity trading (which settles in USD/EUR).

5. Frequently Asked Questions

Q: My bank charges fees for MT799. Can I just have my banker email you?

A: Yes, a “Secure Bank Officer Email” is often acceptable. The email must come from the banker’s corporate domain (e.g., name@hsbc.com) and include their PIN/registration number for verification. It cannot come from a generic branch email.

Q: Does the MT799 move the money?

A: No. The MT799 is a text message. It says “We confirm we have funds.” It does not transfer funds. Only the MT103 transfers funds.

Q: When should I issue the POF?

A: Typically, after the contract is signed but before the operational financial instrument (DLC/SBLC) is issued. It is the “Pre-Flight Check.”

Related Resources

• Back to Pillar Post: The Executive Guide
• DLC vs. SBLC: Financial Instruments
• The Truth About “Video POP” Scams

Ready to Verify Your Capacity?
Submit Your Corporate Profile for Review