How to verify a bank guarantee
By the Vanguard Verify desk · Published 2026-10-25 · Updated 2026-10-25
Short answer: a bank guarantee is only real if your own bank confirms it came from the issuing bank through an authenticated channel (normally a SWIFT MT760) and the wording matches what you agreed. A PDF, scan or email from the other party proves nothing on its own.
A bank guarantee (BG) is a bank's promise to pay you if the applicant fails to perform. In international trade most demand guarantees are issued subject to the ICC Uniform Rules for Demand Guarantees (URDG 758, in force since 1 July 2010). Because the guarantee is a separate undertaking from the trade contract, what matters is who issued it, through which channel, and exactly what it says.
Steps to verify a bank guarantee
- Ask for it to come through your bank. Give the applicant your bank's name and BIC. The issuing bank should send the guarantee to your bank (the advising bank) over SWIFT. For background on the message type, see MT760 meaning.
- Check the issuing bank's BIC yourself. Use SWIFT's free BIC search on swift.com and the bank's own website. Make sure the BIC on the guarantee belongs to the named bank and branch.
- Call the issuing bank on a number you found independently. Never use the phone number or email printed on the document you are trying to verify.
- Read the wording. Confirm the beneficiary name (your exact legal name), amount, currency, expiry date and place, what documents a demand needs, and whether it states "subject to URDG 758" (or ISP98 for a standby).
- Check the applicant. Confirm the company that asked for the guarantee exists in its official company registry and, if it has one, matches its LEI record at GLEIF.
- Get your bank's written acknowledgment. Ask your trade finance desk to confirm in writing that the guarantee was received and authenticated.
Red flags
- The guarantee arrives only as a PDF or by WhatsApp, with no SWIFT delivery to your bank.
- You are asked to pay a "release", "activation" or "issuance" fee to receive it.
- It is described as "leased", "rented" or "monetisable" with no underlying trade.
- The issuing bank's BIC does not match the bank name, or the bank cannot be found in public directories.
- Wording says "ready, willing and able" or similar instead of an irrevocable undertaking to pay on demand.
- Expiry is very short or the place of expiry is unclear.
Bank guarantee vs SBLC vs LC
| Demand guarantee (BG) | Standby LC (SBLC) | Documentary LC (DLC) | |
|---|---|---|---|
| Usual ICC rules | URDG 758 | ISP98 or UCP 600 | UCP 600 |
| Purpose | Pays if the applicant defaults | Pays if the applicant defaults | Pays when shipping documents comply |
| Typical SWIFT message | MT760 | MT760 | MT700 |
For the standby side, see SBLC vs LC.
This page is general information, not legal or banking advice. Your bank's trade finance team has the final word on whether an instrument is genuine.
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FAQ
Can I verify a bank guarantee online?
No public database lists bank guarantees. Verification is done bank-to-bank: the issuing bank sends it to your bank over SWIFT and your bank authenticates it.
What rules govern a bank guarantee?
Most international demand guarantees state they are subject to the ICC Uniform Rules for Demand Guarantees, URDG 758.
Is a PDF of a bank guarantee valid?
A PDF can be a copy of a real guarantee, but it does not prove anything until your own bank confirms it received and authenticated the guarantee from the issuing bank.
Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This answer is general information, not legal or financial advice.