Compliance essentials of non-standard financing: dedicated accounts & company transfers
Whether non-standard financing is done soundly depends largely on whether the fund chain is clear and supervisable. Dedicated accounts and company-to-company transfers are the foundation.
In non-standard financing for LGFVs and similar corporate clients, however flexible the design, one premise is unavoidable: the use of funds must be clear and supervisable. That's why we put compliance first in every design.
Two basics: first, set up an independently supervised account so the bank monitors inflows and outflows as agreed, keeping funds earmarked; second, use company-to-company transfers throughout, avoiding personal accounts. With notarized escrow and similar arrangements, every flow is traceable.
This article explains process only and is not a financing offer or return commitment; specifics follow the formal agreement and regulatory requirements.