LC requires or permits confirmation
The issuing bank’s instructions and the beneficiary’s needs are identified. “May add” is permission, not confirmation already added.
Documentary LC · Added bank undertaking
Confirmed LC Procedure
How confirmation is requested, quoted, added, used and finally settled.
Confirming bank assesses risk
The bank considers issuing-bank risk, country limits, tenor, amount, sanctions/compliance and its own capacity.
Price and acceptance
If willing, the bank agrees pricing/conditions and adds confirmation according to the transaction structure.
Beneficiary presents
The beneficiary presents complying documents to the relevant bank within the credit terms.
Confirming bank honours/negotiates as applicable
Its own undertaking applies according to the confirmed credit, separate from simply forwarding documents.
Bank-to-bank reimbursement/settlement
The confirming/nominated bank obtains reimbursement or settlement from the issuing side under the relevant arrangements.
What can change from bank to bank?
The commercial objective may be similar while the bank’s internal route differs. Credit approval, collateral, compliance review, legal wording, message choice, fees and cut-off times can all vary. Always distinguish those bank-specific steps from the incorporated rules and the purpose of the SWIFT message.
Reviewed: September 2026Standards and bank policy can change.How MyGreed classifies proceduresOfficial-source directory
Procedure ruleThis is a typical learning flow. Exact sequencing, messages, approvals and documents can vary by bank, rules, law and negotiated transaction.