Home Due diligence on Ugandan gold Gold offer terms: FCO, SCO, SBLC, POP, POF
Due diligence
FCO, SCO, LOI, SBLC, POP, POF: the vocabulary of gold offers, and why it is a warning sign
Offers written in "procedures" language, with an LOI, an ICPO, a POF, an FCO, a POP and an SBLC "from the buyer's bank", describe a way of trading that the wholesale gold market does not use. Some of the terms are real banking terms, borrowed; some exist only in these offers. A genuine sale is documented by a signed contract with the owner of the gold, an export permit for the consignment, an independent assay and payment under the contract. This page explains each term and how to tell the two apart.
Why this vocabulary matters
Gold offers that reach foreign buyers often arrive in a vocabulary of their own: FCO, SCO, LOI, ICPO, SBLC, MT760, MT799, MT103, POP, POF, "mandate", "seller's bank", "procedure", "commission". Some terms are borrowed from banking and trade practice; others exist only in such offers. Together they describe a sequence in which the buyer commits, discloses and pays before any gold has been identified. In the cases recorded by regulators the paperwork is the product: the gold does not arrive, and the money is made on fees paid along the way. The Ugandan cases are on how Uganda gold scams work.
The glossary
| Term | Where it is legitimate | How it appears in gold-offer fraud | What to do |
|---|---|---|---|
| FCO, SCO (full or soft corporate offer) | Trade usage for a seller's formal offer, or a non-binding indication of supply. Not banking terms; no standard form. | A letterhead document with a below-benchmark price and a numbered "procedure", passed along intermediaries who have not seen the gold. | Treat it as a letter. Ask who owns the gold, under which licence, and for its export permit. |
| LOI (letter of intent) | A non-binding statement that a buyer wishes to negotiate. | Requested with company documents and passports before any lot is identified. | Send nothing until you know what is for sale and by whom. |
| ICPO (irrevocable corporate purchase order) | Trade usage. A purchase order binds only as a contract does. | Demanded "with POF" as step one, before the seller shows anything. | Decline. Contract after the gold and its documents are inspected. |
| Mandate | An agent acts under written authority from a named principal, which can be checked. | "Seller's" and "buyer's" mandates sit between the parties, each expecting a commission; the principal is never named. | Ask for the authority, the principal's name and its licence. |
| POF (proof of funds) | A bank reference, given once a seller is identified and KYC is under way. | Demanded early, as a bank letter or MT799. The ICC's Financial Investigation Bureau has warned that bogus proof of funds letters circulate. | Share financial information only with an identified counterparty, through your own bank. |
| POP (proof of product) | Trade usage for evidence that goods exist: in gold, a lot at a named vault or refinery. | Photographs, videos, a "warehouse receipt" or a report from a laboratory the seller chose; Ugandan police describe fake documents and stolen mine photographs. | Only an assay on a sealed sample at a laboratory you choose is evidence. See gold assay. |
| SBLC (standby letter of credit) | A bank's undertaking, "irrevocable, independent, documentary, and binding" under the ICC's ISP98 rules. It pays against documents, not promises. | Required from the buyer "before POP", or offered by the seller as "collateral". It is never issued; the "procedure" stalls on fees for it. | Your own bank arranges any standby or letter of credit, against the contract, after due diligence. |
| MT760, MT799 | SWIFT messages between banks. An MT760 issues, or requests, a guarantee or standby. An MT799 is free-format: it transfers and promises nothing. | An MT760 "the buyer's bank" must send first; an MT799 presented as "bank proof" of funds or gold. | Banks send these under a signed contract. An MT799 is a note, not a commitment. |
| MT103 | The SWIFT message by which a bank conveys its customer's funds transfer instruction. | A "deposit by MT103" before delivery, or payment to an account that is not the seller's. | Pay only the contracting party, under the contract, when it says so. |
| Procedure, commission, "seller's bank" | A contract sets out obligations, not a "procedure". Agents exist, paid under written agreements with their principal. | A numbered list of instruments, fees and deadlines; commissions along a chain of people who are not the seller; a "seller's bank" never named. | One document replaces it all: a signed contract with the owner of the gold. |
Definitions marked trade usage have no authoritative source we could find; the fraud column describes a pattern, not any sender.
What the regulators have recorded
The Financial Action Task Force's 2015 report on gold describes a Swiss intermediary that received an unsolicited e-mail offering "a major gold deal" at 4% below the London Gold Fix. A letter from a Swiss company said it had been asked to find buyers and act as "clearing agent" for a second company, itself contacted by a bank, "the actual seller of the gold". The bank was never named; the intermediary suspected that neither company was licensed and reported it. The same report records a scam offering gold "from a royal family" through fake websites, and a Ghanaian case in which one lawyer acted for both sides, the buyer wired USD 3.5 million, and 1% of the agreed quantity arrived.
In East Africa, the Global Initiative Against Transnational Organized Crime documented export permits "purportedly issued" by Uganda's mining directorate, impersonation of revenue authority and Interpol officials, and a victim who paid "to facilitate the deal". In Uganda, of 135 mineral-related cases investigated by the Police Mineral Protection Unit in 2025, 102 were recorded as obtaining money by false pretence or fraud. The police report does not say how many involved gold or foreign buyers.
In the United States, a federal jury in 2016 convicted four people of selling "purported, but nonexistent" gold ore and doré by unsolicited calls to victims abroad; about 440 victims wired more than USD 7.3 million.
How a genuine wholesale gold transaction is documented
| Step | Document | What it replaces |
|---|---|---|
| Identify both parties | KYC both ways: company documents, beneficial owners, licences, sanctions and PEP screening. See checking a Ugandan gold supplier. | LOI, mandates, "the seller's bank" |
| Contract | A signed contract with the owner of the gold, or its licensed seller: form, fineness, quantity, delivery point, assay terms, payment. Under the ICC's UCP 600 a credit "is a separate transaction from the sale or other contract on which it may be based". | FCO, SCO, ICPO, the "procedure" |
| Export authority | An export permit for this consignment, issued to the licensed exporter; in Uganda a mineral may be exported only under one. See how gold is lawfully exported and what each document should prove. | "Legalisation" and "registration" fees |
| Assay | Fire assay on a sealed, split sample at a laboratory the buyer chooses, with an umpire if results differ. | POP |
| Payment | Under the contract, to the contracting party's own account: a letter of credit against the contract documents, an escrow released on the assay result, or payment after receipt and assay, as published refining contracts do. A Ghanaian legal guide for international purchasers lists the same options, paid direct to the licensed exporter. | "Deposit by MT103", SBLC "before POP" |
| Fees | None to reach contract. Official levies are paid by the licence or permit holder to government. The buyer pays no one for permits, insurance, storage or "legalisation". | Every advance fee in the "procedure" |
The "procedure" runs the other way: instruments first, fees next, a delivery date that keeps moving, and no gold. The genuine route is on how buying gold from Uganda works and the contract it ends in on anatomy of a gold purchase agreement; the documents of a lawful export are in the buyer compliance file.
A short test
- Can the sender name the owner of the gold, its licence number and the vault or refinery holding the lot?
- Is any fee, deposit, "registration" or "processing" payment asked for before a signed contract? Stop there.
- Is the price below the benchmark? The discount is the bait. See is gold cheaper in Africa?
- Must your bank issue an instrument before you have inspected and assayed anything?
- How many people stand between you and the gold, each expecting a commission, and did the sender introduce them all: lawyer, laboratory, security firm, bank?
- Can your bank confirm the "seller's bank" and that the account is the contracting company's?
One bad answer is reason enough to stop. The five due-diligence checks give the official source for each.
Where to report
Keep every message and payment record; tell your bank at once if money has moved. Report where you are: in England, Wales and Northern Ireland, Report Fraud, which replaced Action Fraud on 4 December 2025 (reportfraud.police.uk, 0300 123 2040); in the United States, the FBI's Internet Crime Complaint Center (ic3.gov). Interpol advises verifying independently whoever makes an offer and being wary of paying an account in a different country from the company. For Uganda, the scams page gives the State House Investors Protection Unit and the Uganda Police.
Where Uganda Gold Report stands
Uganda Gold Report is developing documented gold-sourcing routes and welcomes enquiries from qualified international buyers. Product availability, specifications, seller authority and export eligibility are subject to independent verification and applicable regulatory approvals.
We issue no FCO or SCO, never ask for an advance fee, and hold no stock or Ugandan licence. If you have a genuine requirement, send us your form, fineness, quantity and destination, and we reply with what can and cannot be quoted at this stage. The test above applies to us too.
Questions buyers ask
What is an FCO in gold trading?
"Full corporate offer" is trade usage for a seller's formal offer with price, quantity, specification and terms. It is not a banking instrument, has no standard form, and we found no authoritative definition. An FCO binds no one and proves nothing about the gold. What matters is who owns the lot, under which licence, and whether an export permit exists for it.
Is an SBLC a normal way to pay for gold?
A standby letter of credit is a bank's "irrevocable, independent, documentary, and binding undertaking" under the ICC's ISP98 rules, and a Ghanaian legal guide for international purchasers lists payment by SBLC among its options. What is not normal is an SBLC demanded from the buyer's bank before any gold has been identified or assayed. In a genuine trade, your own bank arranges any standby or letter of credit against the signed contract, after due diligence, and payment goes only to the contracting party.
What is POP (proof of product)?
Trade usage for evidence that the goods exist. In gold, the only evidence is a lot held at a named vault or refinery that you can inspect, sampled and assayed at a laboratory you choose. Photographs, videos, warehouse receipts and reports from a laboratory the seller picked are not proof: Ugandan police have described fake documents and stolen mine photographs, and forged export permits have been documented in East African gold scams.
Is a "mandate" legitimate?
An agent can lawfully act for a seller under written authority from a named principal, and that authority can be checked. The "mandate" in a gold offer usually stands between the parties, expects a commission, and never names the principal. FATF's 2015 report describes an offer in which a "clearing agent" wrote on behalf of a company that was itself acting for a bank that was never named. Ask for the written authority, the principal's name and its licence; without them there is no seller.
Does Uganda Gold Report issue FCOs?
No. We issue no FCO or SCO, do not ask for an LOI, ICPO or proof of funds, and never ask for an advance fee or deposit. We hold no stock and no Ugandan licence, and no gold is on offer today. If you have a genuine requirement, send your specification through the quote form and we reply with what can and cannot be quoted at this stage.
Quotes
Tell us what you are buying.
Send the gold form, fineness, quantity, delivery point and the documents you require. We reply by email with what can and cannot be quoted at this stage, and on what basis.
Sources for the figures and rules on this page
Evidence for this page
Each statement is labelled by the strength of its evidence and dated. How we label evidence.
| Statement | Evidence | Source | Checked |
|---|---|---|---|
| FATF case study 6: a Swiss financial intermediary received an unsolicited e-mail offering 'a major gold deal' at 4% below the London Gold Fix; a letter from a Swiss company said it had been asked to locate buyers and serve as 'clearing agent' for a second company, said to have been contacted by a bank, 'the actual seller of the gold'; the bank was not named; the intermediary suspected foul play and that neither company was licensed, and reported to the Swiss FIU. | Verified | FATF and APG (2015), Money laundering and terrorist financing risks and vulnerabilities associated with gold, p. 11; read on 2 Nov 2026 from the copy hosted by the Singapore government (isomer-user-content.by.gov.sg), because fatf-gafi.org refused automated access | |
| FATF, chapter 3, retail stage: a contributing jurisdiction 'identified a scam involving a gold dealer looking for an interested partner to purchase gold from a royal family. Fake contact details and websites were created to project an appearance of professionalism in order to attract unsuspecting victims.' | Verified | FATF and APG (2015), same report, p. 19 (chapter 3, 'Fraud') | |
| FATF case study 25 (Ghanaian gold scam, source Ghana FIU): in August 2011 a lawyer and a self-styled traditional chief lured a Middle Eastern businessman to Ghana with an offer of gold; the lawyer represented both buyer and seller; the buyer wired USD 3.5 million and 1% of the agreed quantity was supplied; the Attorney General's office found flaws in the evidence and the matter had not progressed. | Verified | FATF and APG (2015), same report, pp. 36-37 | |
| In East African gold scams documented in 2021, a network produced export permits 'purportedly issued by the Commissioner of the Directorate of Geological Survey and Mines in Entebbe'; others 'pretended to be representatives of the Uganda and Kenya revenue authorities and INTERPOL'; a victim 'was conned into paying money to these individuals to facilitate the deal'; 'False documentation is an essential part of many gold scams'. | Reported | Global Initiative Against Transnational Organized Crime, Risk Bulletin 24, 'What the proliferation of fake-gold scams tells us about regulation, corruption and criminality in East Africa's gold market', March-April 2022 | |
| Of 135 mineral-related cases investigated by the Police Mineral Protection Unit in 2025, 102 were recorded as obtaining money by false pretence or fraud. | Official | Uganda Police Force annual crime report 2025, as cited on /counterparties/buying-gold-from-africa | |
| Police said fraudsters use fake documents, stolen mine photographs and fraudulent premises. | Reported | Daily Express, 18 Aug 2025, as carried on /due-diligence/uganda-gold-scams | |
| A federal jury in Tampa, Florida, convicted four defendants who 'directed and caused the sale of purported, but nonexistent, gold ore or gold doré' and 'paid telemarketers to place unsolicited calls to potential and existing victims outside the United States'; victims were inside and outside the US, including the United Kingdom; about 440 victims wired more than USD 7.3 million between August 2011 and February 2014. No company or person is named on this page. | Official | US Immigration and Customs Enforcement news release, 8 Feb 2016, '4 convicted for international fraud, money laundering scheme involving sale of gold' | |
| IC3 lists as a red flag: 'You are required to pay taxes or fees to receive or unlock your investment.' IC3 describes itself as the central hub for reporting cyber-enabled crime and encourages filing a report even when unsure the complaint qualifies. The IC3 advance-fee-fraud page at ic3.gov/CrimeInfo/AdvanceFeeFraud returned 404 on 2 Nov 2026. | Official | FBI Internet Crime Complaint Center, Investment Fraud page and home page | |
| The ICC's Financial Investigation Bureau alerted banks and the investment community to 'the recent widespread circulation of a false Proof of Funds letter' and said 'any document claiming to be a Proof of Funds letter should be reviewed with caution'. The FIB conducts enquiries into 'money laundering, fraud and suspect documents'. | Official | ICC news, 'FIB warns of bogus proof of funds letter', 4 Oct 2007; ICC Commercial Crime Services, FIB page | |
| MT 103 Single Customer Credit Transfer: 'This message type is sent by or on behalf of the financial institution of the ordering customer, directly or through (a) correspondent(s), to the financial institution of the beneficiary customer. It is used to convey a funds transfer instruction...' Purpose: 'Instructs a funds transfer'. | Official | SWIFT, Standards MT November 2021, Message Reference Guide, MT 103 Single Customer Credit Transfer, 'MT 103 Scope' (published by SWIFT; copy hosted by Bank of New Zealand). swift.com refused automated access on 2 Nov 2026. | |
| MT 760 (Guarantee / Standby Letter of Credit): 'Issues or requests the issue of a guarantee or Standby LC'. MT799 is a free-format interbank message: 'MT 799 is not used for transferring funds or even for promising to transfer funds'. Bank-software and trade-finance explainers, not the SWIFT standard itself. | Reported | Oracle Banking Trade Finance documentation, 'MT 760 (Guarantee / Standby Letter Of Credit)'; Trade Finance Global, 'The difference between SWIFT messaging types: MT799 and MT760', updated 25 Dec 2024 | |
| ISP98 Rule 1.06(a): 'A standby is an irrevocable, independent, documentary, and binding undertaking when issued and need not so state.' ISP98 is described by the ICC Academy as rules for practitioners dealing with standby letters of credit. | Official | ICC Digital Library, International Standby Practices (ISP98), Rule 1.06; ICC Academy ISP98 page | |
| UCP 600 Article 2: a credit is any irrevocable arrangement, however named, that 'constitutes a definite undertaking of the issuing bank to honour a complying presentation'. Article 4(a): 'A credit by its nature is a separate transaction from the sale or other contract on which it may be based.' | Official | ICC Digital Library, Uniform Customs and Practice for Documentary Credits (UCP 600), Articles 2 and 4 | |
| A Ghana law-firm guide for international purchasers lists payment options including 'Payment via SBLC' and 'TT Wire Transfer (MT-103) to the LGEC' (licensed gold export company), describes escrow as issuing 'instructions for payment upon satisfactory evidence of assay report from the seller', says 'a huge discount is a pointer for a botched transaction', and that 'international traders must ensure that they deal directly with LGEC's'. | Reported | Legalstone Solicitors (David Yaw Danquah), 'Key factors to consider by international purchasers in gold export transactions', Legal500, 21 Sep 2021 | |
| A mineral may be exported only under an export permit (s.150). Buying or selling minerals as principal or agent requires a mineral dealer's licence (s.140). | Verified | Mining and Minerals Act 2022 (Uganda), assented copy | |
| Published refining contracts pay after receipt and assay, and use an independent umpire where assays differ beyond an agreed tolerance. | Verified | SEC EDGAR refining agreements, as carried on /how-it-works | |
| A ministry notice requires export levy payment through the Uganda Revenue Authority; official fees are paid by the licence or permit holder to government. | Reported | The Independent, 21 Dec 2024, reporting a Ministry of Energy notice, as carried on /due-diligence/uganda-gold-scams | |
| Report Fraud 'replaces Action Fraud as the national platform for reporting cyber crime and fraud' from 4 December 2025, run by City of London Police; reportfraud.police.uk; 0300 123 2040 (unchanged). The NCA fraud page gives the same reporting route. The Action Fraud and reportfraud.police.uk pages themselves refused automated access on 2 Nov 2026. | Official | GOV.UK news, 'Report Fraud: New service from City of London Police', 4 Dec 2025; National Crime Agency, 'Fraud' | |
| Interpol advice: 'Independently verify the company/individual offering the items before making any purchases'; 'Be wary if asked to make a payment to a bank account located in a different country than where the company is located'; 'DON'T trust someone who claims to be a government official or law enforcement officer'. Interpol's investment-fraud page timed out on 2 Nov 2026. | Official | Interpol, 'Financial crime: don't become a victim!' | |
| FCO, SCO, ICPO, POP, 'mandate' and 'procedure' as used in gold offers are trade usage; no authoritative definition was found. The 'how it appears in fraud' column describes the pattern of such offers, not any named sender. Uganda Gold Report's enquiry screening already flags ICPO/FCO/SBLC-style wording. | Reported | Trade usage; Uganda Gold Report enquiry-screening specification | |
| Search volume for 'fco gold' and related terms has not been read in SEMrush; the page is drafted on buyer-intent and enquiry-screening evidence, and the volume reading is outstanding. | Subject to verification | SEMrush reading outstanding (free plan, web UI) |