A credit was issued requiring, amongst other documents, "Original full set of clean on board bill of lading issued by carrier or agent ..... (forwarder BL not acceptable)."
The issuing bank had received documents from the nominated bank who confirmed that they were considered compliant.
It would appear that the applicant also received copies from the beneficiary. It contacted the issuing bank to advise them it considered the documents to be discrepant due to the bill of lading being issued by a forwarder. The issuing bank replied stating that it considered the documents to be compliant.
The applicant advised the issuing bank that the agent for the carrier was a Company CM and that the issuing bank should check with the carrier to see whether the company that signed the bill of lading as agent of the carrier (Company C) was an agent.
Two issues were raised: (1) whether the document was compliant, and (2) did the issuing bank have an obligation to investigate the bona fides of the entity that signed the bill of lading.
It was concluded that the document was compliant and there was no obligation for the issuing bank to carry out such an investigation.