When it comes to offshore commodity transactions—especially in the high-stakes world of physical gold—the deal is only as strong as its foundation. Before procedures, contracts, or logistics, the first step to closing a deal begins with verifying the buyer’s credibility and intent. The holy trinity of any serious buyer introduction in this space is the CIS (Client Information Sheet), POF (Proof of Funds), and LOI (Letter of Intent).
Without these three basic documents, there’s no deal. Here’s why they matter—and how to handle them properly.
1. CIS (Client Information Sheet): Know Your Buyer
The CIS is the buyer’s calling card. It includes full legal names, passport copies, company registration details, addresses, and a summary of the buyer’s background in commodity transactions. The CIS serves two purposes:
- Due Diligence: It helps the seller, mandate, and facilitator verify that the buyer is a legitimate entity with a verifiable track record.
- Compliance: Regulatory protocols like AML (Anti-Money Laundering) and KYC (Know Your Customer) require this data for any high-value transaction, especially when dealing with precious metals.
A CIS is not just paperwork—it’s the buyer’s first signal of seriousness. If they hesitate to provide it, consider it a red flag.
2. POF (Proof of Funds): Show Me the Money
In a business where deals can range from millions to hundreds of millions of dollars, Proof of Funds is the ultimate litmus test. No matter how sophisticated the buyer sounds, without POF, the conversation shouldn’t go beyond a handshake.
Acceptable forms of POF include:
- Bank statement showing current available funds.
- RWA Letter (Ready, Willing, and Able) issued on bank letterhead.
- Screen share or soft proof (e.g., MT199) depending on deal complexity.
The POF must match the transaction value being discussed. A buyer claiming to purchase 500 kg of gold but presenting a $1M account is either misinformed or misleading.
3. LOI (Letter of Intent): Clarify the Buyer’s Request
Once the CIS and POF are in hand, the next piece is the LOI (Letter of Intent). This document outlines what the buyer wants, how much, at what terms, and under which procedure. A well-prepared LOI includes:
- Quantity and purity (e.g., 100 kg of gold, 99.99% purity)
- Delivery terms (FOB, CIF, or Cash & Carry)
- Target price or acceptable discount
- Destination/refinery
- Payment terms (MT103, USDT, etc.)
- Timeline and frequency (spot or monthly, for example)
This step filters out the talkers from the doers. A real buyer, working with real funds, will have no problem outlining their exact requirements in writing.
Fast Track to a Close
Once CIS, POF, and LOI are confirmed, you’re no longer chasing shadows—you’re dealing with someone serious. These three documents unlock access to vetted sellers, clear procedures, and transparent negotiations.
Yet despite their simplicity, this basic package is often missing in broker chains where rumor replaces fact and everyone wants to control the deal. Don’t fall into that trap.
At Invest Offshore, we deal only with buyers and sellers who understand the importance of preparation and precision. If you’re ready to transact in gold or other commodities, start with the basics—and we’ll take you the rest of the way.
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