A paying bank is a bank that accepts the commission of the remitting bank and pays the remittance to the beneficiary. It is also called a paying bank. The paying bank should pay attention to the following matters when paying the remittance.
(1) The payment of the remittance must be handled strictly in accordance with the payment authorization letter of the remitting bank. The content cannot be changed without authorization. Otherwise, the consequences arising therefrom shall be borne by the remitting bank.
(2) After receiving the payment authorization letter, its authenticity must be verified according to the specific circumstances. If it is a letter of credit or bill of exchange, its seal must be verified; if it is a sealed telegram, its secret seal must be verified; if SWIFT is used, its message format must be checked to see if it is a valid encrypted format.
(3) After receiving the payment, it shall be paid and different treatments shall be made according to the instructions on position transfer in the payment authorization letter of the remitting bank.
(4) Payment shall be made according to the different situations of the payee. If the payee on the payment authorization has an account at the remitting bank, the payment can be directly credited to the bank account after receiving the payment. If the payee does not have an account at the remitting bank, the payment can be notified to the payee or transferred to the bank account after receiving the payment.
(5) Payment must be made in accordance with the requirements of the State Administration of Foreign Exchange. For example, under trade items, the remitting bank must credit the payment after the payee provides the export verification form number, and require the payee to fill in the international collection declaration form in time and submit it to the remitting bank for entry into the relevant declaration system.
(6) Correctly handle remittances that cannot be paid. If the account number and account name of the payee do not match, or if the payee has been notified but has not come to collect the payment, or even refuses to receive the payment for various reasons, or the position cannot be settled, the remitting bank should explain the reasons for the non-payment to the remitting bank as soon as possible, ask it to check and give further instructions, and handle the matter according to the situation after the remitting bank responds.
(7) Unconditional incoming remittances Usually, the payment of remittances is unconditional. The remarks on the payment authorization are only a message for the paying bank to pass on to the payee, not the payment conditions. However, if it is a conditional remittance, such as the payment authorization stating that “payment will be made after the payee submits a full set of documents under the × contract”, the remitting bank should handle it with caution. If it is unwilling to accept it, it should promptly inform the remitting bank.