Documents to Support Transactions

This guide provides best practices for collecting and maintaining a comprehensive set of documents that clearly establish the commercial nature and business purpose of a transaction. By following these guidelines and providing the necessary supporting documents, Conduit clients can ensure their transactions are processed smoothly and without delay.

Required information that the client must provide to verify the purposes of the payments:

Invoice, Agreement/Contract, or Purchase Order

Each transaction must be supported by one of the following documents:

• Invoice
• Agreement/Contract
• Purchase Order

These documents must include:

Description of Goods/Services: Clearly state what is being exchanged, specifying items, quantities, and prices.

Parties Involved: Full business names, addresses, and contact details (including a designated contact person, business email, phone number, and website).

Payment Terms: Defined amounts, payment due dates, and accepted payment methods.

Signatures: Contracts and agreements must be signed by authorized representatives of both parties.

Business Justification: If the purpose of the transaction is unclear, a written statement explaining the commercial reason, signed by an authorized representative, must be included.

‍

Invoice Requirements 

Every invoice must include the following details:

Seller’s Information

• Letterhead with company details
• Full legal name
• Physical address
• Contact details (website, email, phone number)
• Bank account details (bank name, location, SWIFT code/routing number, account number, and account holder name)
• For cryptocurrency payments: Wallet address (if applicable)

Buyer’s Information

• Full legal name
• Physical address
• Contact details (website, email, phone number)

Invoice Details

• Unique invoice number
• Date of issue
• Payment terms (e.g., due upon receipt, 30 days, prepayment before delivery)

‍

Detailed Description of Goods/Services

• Line-by-line breakdown of goods/services provided
• Quantities and unit prices
• Taxes and total value

‍

For goods transactions:

• Weight and dimensions
• Harmonized System (HS) codes
• International Commercial Terms (Incoterms)
• Country of origin (where goods were produced or services were rendered)
• Declarations/certifications (e.g., export control compliance)

Country-Specific Invoice Regulations

• Mexico: Electronic invoices must have a digital signature and a QR code linking to the SAT for verification.
• Colombia: Digital signatures and QR codes are required for tax validation.
• Other Regions: Some countries (Ghana, Nigeria, South Africa, Argentina, Brazil, Chile) require physical stamps or signatures, while others have adopted electronic invoicing.

‍

Example Invoices:

Type of Transactions

Paying Suppliers (Accounts Payable – A/P)

Invoices supporting supplier payments must meet the general invoice requirements outlined earlier in this guide. Ensure that all necessary details are included to prevent processing delays and verify the legitimacy of the transaction.

Receiving Payments (Accounts Receivable – A/R)

Clients receiving payments from third parties must submit invoices justifying the transaction.

Required Documentation

• Invoices issued by the Conduit client or their customer.
• Same details as A/P invoices to ensure consistency.
• Additional documentation for goods transactions, such as shipping or delivery confirmations. Further details can be found below.

Supporting Documentation

To verify the transaction, Conduit may request:

• Bank transfer confirmations or payment receipts.
• Signed purchase orders.
• Proof of delivery, such as shipment tracking records or signed confirmations.
• Breakdown of remaining balance for advance or partial payments.
• Subscription agreements for recurring services.

Internal Fund Transfers (Treasury Management – T/M)

For transactions involving fund movements between accounts controlled by the same entity, documentation must prove account ownership and the purpose of the transfer.

Required Documentation

• Recent bank statements (last three months) showing account ownership.
• Screenshots of digital wallets displaying ownership details.
• Internal financial statements documenting fund movements.
• Contracts for currency exchanges or agreements between related entities.
• Proof of wallet ownership for stablecoin transactions.

Shipping or Delivery Documents of Physical Goods

For transactions involving physical goods, additional documentation is required to confirm shipment or delivery.

Required Documentation

• Bills of Lading, Delivery Receipts, or Shipping Invoices confirming shipment details.
• Proof of Delivery, such as tracking information or signed receipts.

Import/Export Compliance

• Corporate documentation confirming valid business registrations and licenses for import/export operations.
• Proof of business operations, such as tax filings or certificates proving active trade.
• Vendor due diligence reports, verifying counterparty legitimacy.

‍

NICE TO HAVES

Correspondence

Supporting documents that provide additional business context:

• Emails or written communications demonstrating business negotiations and agreements.

Other Supporting Documentation

• Tax invoices and receipts supporting the transaction.
• Business reports or proposals explaining the transaction or business relationship.