A white stone arch in clear light
Diligence

Our diligence standard.

Our reputation comes as much from what we decline as from what we accept. Diligence is part of the protection we offer.

Why it matters

Discipline is the protection.

A great deal of what crosses our desk does not survive a first look. We decline what cannot be verified, and we are comfortable doing so. A clear no, delivered early, protects the counterparty from wasted time and exposure, and it protects the firm from associating its name with anything it cannot stand behind.

Diligence is not a gate we open once and forget. It is a posture we hold throughout an engagement. We verify before we proceed, we document what we rely on, and we decline when the evidence is not there. That discipline is the protection we extend to every party at the table.

The standard

The gates every transaction must pass.

01

Proof of funds and asset verification

We confirm that funds and assets exist and are real before any discussion of structure or terms moves forward.

02

Independent valuation and custody confirmation

Value is established by independent assessment, and custody is confirmed with the institution that actually holds the asset.

03

Counterparty and beneficiary KYC and AML

Every counterparty and ultimate beneficiary is identified and screened under professional KYC and AML procedures.

04

Clear mandate and commercial rationale

We require a defined mandate and a commercial rationale that makes sense on its own terms, not only in a pitch.

What we decline

Some structures we will not advance.

I.

Leased or unverifiable instruments

We do not work with leased or unverifiable instruments (SBLC, BG, MTN, PPP), because the underlying value cannot be established or stood behind.

II.

No proof of funds or bank verification

We decline opportunities that cannot produce proof of funds or bank-to-bank verification, since there is nothing to confirm.

III.

Prime-bank and advance-fee schemes

We avoid prime-bank guarantee schemes and advance-fee structures, which carry well-documented hallmarks of fraud.

IV.

Assets that cannot be valued or custodied

We pass on assets that cannot be independently valued or held in proper custody, because there is no basis to rely on them.

Red flags

Signals we act on.

Most problematic transactions announce themselves early. When the signals below appear, we slow down, ask for evidence, and step away if the answers do not hold. The presence of any one of them is enough to warrant a closer look.

  • Urgency and pressure to skip verification steps.
  • Secrecy that goes beyond a normal confidentiality agreement.
  • Fees demanded before any verification has taken place.
  • Vague or unnamed issuing banks.
  • No independent valuation of the underlying asset.
Engagement

For qualified counterparties and institutional partners.

Engagements are reviewed selectively. Lumen Capital responds only to qualified investors, institutional counterparties, family offices, and professional partners with clearly defined mandates.

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Or write directly: contact@lumencapitaladvisory.com