How to verify an SBLC issued by MT760
By the Vanguard Verify desk · Published 2026-10-26 · Updated 2026-10-26
Short answer: you verify a standby letter of credit (SBLC) by having your own bank confirm that an authenticated SWIFT MT760 arrived from the named issuing bank. Then you check the issuer, the governing rules (usually ISP98 or URDG 758) and the terms. A PDF, a scan or a "pre-advice" on its own does not prove that an SBLC exists.
Steps
- Route it to your bank. Ask for the SBLC to be issued by MT760 to your bank (the advising bank) at your bank's BIC. Only a SWIFT-connected bank can authenticate it.
- Get written confirmation. Your bank's trade finance desk should confirm in writing that the MT760 was received and authenticated. Ask whether the bank is only advising the SBLC or also confirming it.
- Check the issuer. Confirm the issuing bank is licensed by its home regulator, and that its BIC matches the bank's name and country. See how to verify a SWIFT BIC code.
- Read the governing rules. Standbys are normally issued subject to ISP98 (ICC Publication 590) or UCP 600. Demand guarantees are normally issued under URDG 758.
- Check the key terms. Look at the amount, currency, expiry date and place, applicant, beneficiary, the documents a demand must include, and whether partial demands are allowed.
- Match it to the deal. The applicant and the underlying contract should line up with your SPA or service agreement.
What to look for
| Item | Real SBLC | Warning sign |
|---|---|---|
| Delivery | Authenticated MT760 to your bank | PDF, email or courier copy only |
| Rules | ISP98, UCP 600 or URDG 758 | "ICC 500", "ICC 600" or no rules stated |
| Beneficiary | You, or your named company | A third party, or "bearer" |
| Purpose | Tied to a real contract | "For monetisation" or "for trading" |
| Cost | Charged by the issuing bank to its own client | A "lease fee" or an upfront payment to a broker |
Red flags
- The SBLC is offered for lease or monetisation. See leased SBLC: is it real?
- You are asked to pay fees before your bank has confirmed receipt.
- The sender wants to send the SBLC by MT799 only, or by a "server-to-server" or "download" method.
- The issuer refuses to send it to your nominated bank and insists on a bank they choose.
- The verification phone number or email on the document does not match the bank's official website.
Note on the MT760 format
SWIFT revised the guarantee and standby messages in its November 2021 Standards Release. The MT760 is now more structured, which makes checking and screening easier. Your bank's system will show whether the message meets the current format. See also MT760 meaning.
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FAQ
Can I verify an SBLC from a PDF copy?
No. Only your bank can confirm, through official channels, that an authenticated MT760 arrived from the issuing bank.
Which rules govern an SBLC?
Usually ISP98 (ICC Publication 590), sometimes UCP 600. Demand guarantees are normally governed by URDG 758.
Is a pre-advice by MT799 the same as an SBLC?
No. An MT799 pre-advice is not the instrument itself. The SBLC is issued by MT760.
What is the difference between advising and confirming an SBLC?
An advising bank checks that the SBLC is authentic and passes it on. A confirming bank also adds its own commitment to pay.
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.