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Clean Collection

General Collection

Overview

The Clean Collection is a settlement service where ABC processes financial instruments under customers' instructions and collects money from overseas payers on their behalf. As this collection mode is only based on financial instruments without invoice or shipping documents, it is termed, "clean collection".

What bills are covered by collection?

ABC collection services cover drafts, promissory notes, cheques, traveler's cheques, postal money orders and other negotiable securities denominated in foreign currencies; foreign currencies not listed in the quotation of exchange rates released by ABC; foreign currency banknotes listed in the quotation of exchange rates released by ABC, but damaged or of uncertain authenticity. 

Procedures

1. The customer completes two copies of the clean collection application form and delivers them to ABC for collection. In the case of individual customers, identity certificates should be presented. In the case of corporate customers, a financial seal should be affixed to the clean collection application form.

2. ABC reviews the form and substance of the financial instrument.

3. ABC crosses or endorses the paper accordingly, and retains a copy.

4. ABC prepares and sends the engagement letter to the foreign bank for collection.

5. When money is collected, ABC credits / transfers the money or notifies the payee as required. If the customer requests cash withdrawal, he/she needs to present identity certificate and submit the original receipt.

Immediate Crediting

Overview

Immediate crediting is a special form of clean collection. Unlike general clean collection, after we send error-free instruments to our correspondent bank overseas, the correspondent bank immediately credits money into our account before exchange and presentation of the instrument. If the instrument is dishonored following presentation, the overseas bank reserves the right of recourse to ABC within a certain period.

Features

1. Quick collection. Typically, the correspondent bank will credit money into our account within three working days after receiving the instrument.

2. Low cost, easy inquiry. Nearly no fees are charged by the correspondent bank. Full-time staff are appointed to answer inquiries.

Procedures

Pursuant to the agreement we have entered into with our correspondent bank overseas.

FAQs

Which instruments are not suitable for immediate crediting?

Immediate crediting service is not available for the following instruments:

Damaged instruments, in particular, cheques; dishonored instruments; copy or photocopy of instruments; instruments without correct, valid endorsement; instruments that do not specify the full name or complete address of the paying bank; fraudulent instruments; instruments that exceed the agreed amount limit; instruments transferred by endorsement; cheques issued by the U.S. Department of the Treasury.

Tips

Since the collected money is exposed to the risk of recourse, the overseas correspondent bank reserves the right of recourse.

Final Crediting

Overview

Final crediting is a special form of clean collection. We send error-free instruments to our correspondent bank overseas, which in turn, credits money into our account within the agreed period of time or gives a notice of dishonored instruments.

Features

1. Safer than immediate crediting, suitable for large-value instruments.

2. Make the decision of crediting or dishonor within a specified time frame, reducing the cost of inquiry and demand.

3. Quicker than general clean collection.

Procedures

Pursuant to the agreement we have entered into with our correspondent bank overseas.

FAQs

What instruments are eligible for final crediting?

1. USD cheques should be paid in the United States and with an amount less than USD750,000.

2. All cheques must contain complete and correct endorsements.

3. Instruments must be original, complete and within valid period.

Tips

This service does not apply to post-dated cheques, dishonored instruments and cheques issued by the U.S. Department of the Treasury.

 

Note: Please contact your local branch for detailed information about the service.

Customer Service Center : 95599

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