From LC application to document settlement
A Letter of Credit is one of the most document-intensive and compliance-critical instruments in trade finance. MyWave agents orchestrate the entire LC lifecycle — from application and issuance through document examination, discrepancy resolution, and final payment settlement — eliminating manual document checking, accelerating turnaround, and ensuring compliance with UCP 600 and local regulatory requirements.
Each step shows the AI agent responsible, what it does, which systems it touches, and what it produces.
Receives the LC application from the corporate customer via the bank portal or SWIFT, validates all mandatory fields (applicant, beneficiary, amount, expiry date, port of loading/discharge, goods description) against the bank's credit approval and AML screening requirements.
Checks the applicant's available trade finance credit limit, calculates the LC's impact on exposure, and verifies that any required cash collateral or margin has been lodged before authorising issuance.
Drafts the LC text in accordance with UCP 600 rules, the customer's application, and the bank's standard clauses, flagging any non-standard terms or ambiguous conditions that could create document examination risk.
Generates and transmits the LC issuance message (MT700 or ISO 20022 equivalent) to the advising bank via SWIFT, and sends a confirmation copy to the applicant and internal operations team.
On the advising bank side, receives the incoming LC, verifies its authenticity via SWIFT test keys or digital signature, and advises the beneficiary with a plain-language summary of the LC terms and required documents.
Processes amendment requests from the applicant or beneficiary, validates the proposed changes against the original LC terms and credit approval, and transmits the amendment (MT707) to all parties upon approval.
Performs AI-assisted examination of all presented documents (Bill of Lading, Commercial Invoice, Packing List, Certificate of Origin, Insurance Certificate) against the LC terms, UCP 600 article requirements, and ISBP guidelines — identifying discrepancies at field level.
Manages the discrepancy resolution workflow — notifying the beneficiary, collecting waiver requests from the applicant, tracking the five-banking-day UCP 600 deadline, and updating the examination status in real time.
Upon compliant document presentation (or accepted waiver), authorises payment to the beneficiary in accordance with the LC's payment terms — sight payment, deferred payment, acceptance, or negotiation — and debits the applicant's account or facility.
Closes the LC in the trade finance system upon full utilisation or expiry, releases any unused collateral, and generates the required regulatory reports (e.g. cross-border transaction reporting, trade finance register submissions).
Typical results from full deployment
Process Phases