Regulatory Alerts2001-01-25
Added · Updated
Establishment of Special Account for Effecting Payments for Coffee Purchase From the Coffee Auction Center
Commercial banks must open special coffee auction accounts in the name of coffee exporters upon written request, with balances used solely for payments to coffee sellers for purchases won at the Coffee Auction Center. Banks issue Letters of Undertaking to the Coffee Auction Center committing to pay the full amount upon receipt of a payment authorization and corresponding cheque, while prohibiting cheques drawn in favor of the account holder or third parties other than specified sellers. Unutilized balances may be released to the account holder only upon receipt of a written blocked account release authorization from the Coffee Auction Center. These directives apply exclusively to coffee purchases and payments at auctions conducted by the Coffee Auction Center and came into force on 1 March 2001.