What does FOBC mean in UNCLASSIFIED

A Foreign Outward Bill for Collection (FOBC) is a payment method used by exporters to receive money from overseas buyers. It involves an international bank acting as an intermediary between the exporter and buyer, ensuring that payment is received in the currency of the exporter's choice.

An international bank will issue a bill of exchange on behalf of the seller requiring that the buyer pay a certain amount to another account within a specified timeframe. The seller will then submit this bill of exchange to their own bank who will handle it on their behalf. The recipient bank will ensure that the funds are paid out to whoever holds the bill of exchange by either placing it with other banks or cashing it directly.

One major benefit of using FOBCs is that they offer protection for both parties involved in the transaction since there are two banks acting as intermediaries between them. Additionally, since FOBCs involve transferring funds internationally, they can also be used to reduce fees associated with converting currencies from one denomination to another.

An international bank typically issues a FOBC on behalf of an exporter who requires payment from an overseas buyer. The issuer will act as an intermediary between both parties involved in the transaction and ensure that any payments made are done so in accordance with local laws and regulations.

Generally speaking, processing times vary depending on where both parties involved in the transaction are located and what methods they are using to transfer funds (e.g., wire transfers). That said, it usually takes between 1-7 days for funds to be processed when using a FOBC.