WHAT IS SWIFT?
SWIFT stands for the "Society for Worldwide Interbank Financial Telecommunication." SWIFT is a network of over 8,300 banks, securities, and corporations located in over 208 countries.
SWIFT allows for the exchange of millions of standardized financial messages between financial institutions throughout the world. SWIFT was created in 1973 by bankers who required a more efficient and secure system for interbank communications and transfer of funds and securities.
Banks will have a trained SWIFT operator responsible for managing SWIFT messages, both out-bound and in-bound. In smaller Private Banks, this may be one single individual. Larger banks will have SWIFT operator departments.
Before SWIFT, all communication between banks was done by telephone, telex, courier, or mail. Before SWIFT, messages between banks contained no instructions past the basic fund's transfer itself; however, SWIFT allows the banks to attach messages and conditions to funding transfers. Each SWIFT message is a condition of Wire Transfer.
SWIFT CODES
SWIFT Codes are actually very easy to understand, despite their unfathomable appearance. The ‘MT’ at the beginning of the code stands for ‘Message Type,’ and the number indicates one of the many standardized message formats which comprise the SWIFT messaging system.
What does the SWIFT MT799 option provide?
An account with the SWIFT MT799 capability allows bank-to-bank SWIFT electronic verification for Proof of Funds in compliance with the SWIFT Category 7
"Treasury" Markets & Syndication" message types.
MT799 is a simple text message sent bank to bank. This is used for a bank to bank proof of funds only. The MT799 is not a form of payment, and it is not a bank undertaking or promise to pay. It is simply a bank to bank confirmation of the funds on deposit, nothing more.
What does the SWIFT MT760 option provide?
An account with the SWIFT MT760 capability allows bank-to-bank SWIFT electronic verification of the account and will include a blocked funds provision.
Correspondent Bank?
The correspondent bank appears when The Investor makes a Telegraphic (Wire) transfer. If The investor's bank does not directly correlate with the Trader's bank, the Investor's bank pays through their correspondent (Intermediary) banks. The correspondent banks make a charge for this service.
Some Other SWIFT codes with Description
Customer Payments and Cheques MT 101 Request for Transfer MT 102 Multiple Customer Credit Transfer MT 102+(STP) Multiple Customer Credit Transfer (STP) MT 103 Single Customer Credit Transfer MT 103+(REMIT) Single Customer Credit Transfer (REMIT) MT 103+(STP) Single Customer Credit Transfer (STP) MT 104 Customer Direct Debit MT 105 EDIFACT Envelope MT 107 General Direct Debit Message MT 110 Advice of Cheque(s) MT 111 Request for Stop Payment of a Cheque MT 112 Status of a Request for Stop Payment of a Cheque MT 190 Advice of Charges, Interest and Other Adjustments MT 191 Request for Payment of Charges, Interest, and Other Expenses MT 192 Request for Cancellation MT 195 Queries MT 196 Answers MT 198 Proprietary Message MT 199 Free Format Message
More about Swift MT199 Message bank letter A Swift Message Type 199 Is A Interbank Message Used Between Two Banks To Transmit The Value Of A Bond Or An Skr Or A Free Format Message Engaging 2 Banks Readiness To Move Forward With A Transaction. Usually A Private One. An Mt199 Swift Message Is Easily Explained As A “Chat” Message. Basically, You Use This Format: • When A Transfer Order Has Been Sent, And You Want To “Notify” The Beneficiary Bank To Sort Out Something, • Or To Find Out If Funds Have Been Applied, • Or Basic Other Info. For Example, A MT199 Could Go; "We Refer To Our Mtxxx, Date Xxxxxx, (Input Information Regarding The Orderer And Beneficiary. The amount, Dates, And So On) And Then, Straight To The Point, You Just Simply Type The Text Of Your Question, Or Demand, Or Whatever, Like, “Our Customer Reports Funds Have Not Been Applied Yet; Please Confirm Transfer Status” Kind Regards, (Whoever)" The Other Bank Will Reply To You Using The Same Format (Most Likely), So Sooner Or Later, You Will Have An Incoming Mt199 From Them, Like; "We Refer To Your Mt199 Date Xxxxx And Our Mtxxx Date Xxxx Information, Codes, Etc… “We Are Holding Funds, Request (Whatever Additional Information) To Apply Funds To Beneficiary Minus Our Charges. Please Confirm Iban Number (For Example).” So Basically, A MT 199 Is One Banker Or Security Officer “Talking” To Another.
Financial Institution Transfers MT 200 Financial Institution Transfer for its Own Account MT 201 Multiple Financial Institution Transfer for its Own Account MT 202 General Financial Institution Transfer MT 202+(COV) General Financial Institution Transfer (COV) MT 203 Multiple General Financial Institution Transfer MT 204 Financial Markets Direct Debit Message MT 205 Financial Institution Transfer Execution MT 205+(COV) Financial Institution Transfer Execution (COV) MT 207 Request for Financial Institution Transfer MT 210 Notice to Receive MT 256 Advice of Non-Payment of Cheques MT 290 Advice of Charges, Interest, and Other Adjustments MT 291 Request for Payment of Charges, Interest, and Other Expenses MT 292 Request for Cancellation MT 295 Queries MT 296 Answers MT 298 Proprietary Message MT 299 Free Format Message
Treasury Markets, Foreign Exchange, Money Markets, and Derivatives MT 300 Foreign Exchange Confirmation MT 303 Forex/Currency Option Allocation Instruction MT 304 Advice/Instruction of a Third Party Deal MT 305 Foreign Currency Option Confirmation MT 306 Foreign Currency Option MT 307 Advice/Instruction of a Third Party FX Deal MT 320 Fixed Loan/Deposit Confirmation MT 321 Instruction to Settle a Third Party Loan/Deposit MT 330 Call/Notice Loan/Deposit Confirmation MT 340 Forward Rate Agreement Confirmation MT 341 Forward Rate Agreement Settlement Confirmation MT 350 Advice of Loan/Deposit Interest Payment MT 360 Single Currency Interest Rate Derivative Confirmation MT 361 Cross Currency Interest Rate Swap Confirmation MT 362 Interest Rate Reset/Advise of Payment MT 364 Single Currency Interest Rate Derivative Termination/Recouponing Confirmation MT 365 Single Currency Interest Rate Swap Termination/Recouponing Confirmation MT 380 Foreign Exchange Order MT 381 Foreign Exchange Order Confirmation MT 390 Advice of Charges, Interest, and Other Adjustments MT 391 Request for Payment of Charges, Interest, and Other Expenses MT 392 Request for Cancellation MT 395 Queries MT 396 Answers MT 398 Proprietary Message MT 399 Free Format Message Collections and Cash Letters MT 400 Collections: Advice of Payment MT 405 Collections: Clean Collection MT 410 Collections: Acknowledgment MT 412 Collections: Advice of Acceptance MT 416 Collections: Advice of Non-Payment/Non-Acceptance MT 420 Collections: Tracer MT 422 Collections: Advice of Fate and Request for Instructions MT 430 Collections: Amendment of Instructions MT 450 Cash Letters: Cash Letter Credit Advice MT 455 Cash Letters: Cash Letter Credit Adjustment Advice MT 456 Cash Letters: Advice of Dishonor MT 490 Advice of Charges, Interest and Other Adjustments MT 491 Request for Payment of Charges, Interest, and Other Expenses MT 492 Request for Cancellation MT 495 Queries MT 496 Answers MT 498 Proprietary Message MT 499 Free Format Message Securities Markets MT 500 Instruction to Register MT 501 Confirmation of Registration or Modification MT 502 Order to Buy or Sell MT 503 Collateral Claim MT 504 Collateral Proposal MT 505 Collateral Substitution MT 506 Collateral and Exposure Statement MT 507 Collateral Status and Processing Advice MT 508 Intra-Position Advice MT 509 Trade Status Message MT 510 Registration Status and Processing Advice MT 513 Client Advice of Execution MT 514 Trade Allocation Instruction MT 515 Client Confirmation of Purchase or Sale MT 516 Securities Loan Confirmation MT 517 Trade Confirmation Affirmation MT 518 Market-Side Securities Trade Confirmation MT 519 Modification of Client Details MT 524 Intra-Position Instruction MT 526 General Securities Lending/Borrowing Message MT 527 Triparty Collateral Instruction MT 528 ETC Client-Side Settlement Instruction MT 529 ETC Market-Side Settlement Instruction MT 530 Transaction Processing Command MT 535 Statement of Holdings MT 536 Statement of Transactions MT 537 Statement of Pending Transactions MT 538 Statement of Intra-Position Advice MT 540 Receive Free MT 541 Receive Against Payment Instruction MT 542 Deliver Free MT 543 Deliver Against Payment Instruction MT 544 Receive Free Confirmation MT 545 Receive Against Payment Confirmation MT 546 Delivery Free Confirmation MT 547 Deliver Against Payment Confirmation MT 548 Settlement Status and Processing Advice MT 549 Request for Statement/Status Advice MT 558 Triparty Collateral Status and Processing Advice MT 559 Paying Agents Claim MT 564 Corporate Action Notification MT 565 Corporate Action Instruction MT 566 Corporate Action Confirmation MT 567 Corporate Action Status and Processing Advice MT 568 Corporate Action Narrative MT 569 Triparty Collateral and Exposure Statement MT 574 (IRSLST) IRS 1441 NRA Beneficial Owners List MT 574 (W8BENO) IRS 1441 NRA Beneficial Owner Withholding Statement MT 575 Statement of Combined Activity MT 576 Statement of Open Orders MT 577 Statement of Numbers MT 578 Statement of Alignment MT 579 Certificate Numbers MT 581 Collateral Adjustment Message MT 582 Reimbursement Claim or Advice MT 584 Statement of ETC Pending Trades MT 586 Statement of Settlement Allegements MT 587 Depositary Receipt Instruction MT 588 Depositary Receipt Confirmation MT 589 Depositary Receipt Status and Processing Advice MT 590 Advice of Charges, Interest and Other Adjustments MT 591 Request for Payment of Charges, Interest, and Other Expenses MT 592 Request for Cancellation MT 595 Queries MT 596 Answers MT 598 Proprietary Message MT 599 Free Format Message Treasury Markets, Precious Metals MT 600 Precious Metal Trade Confirmation MT 601 Precious Metal Option Confirmation MT 604 Precious Metal Transfer/Delivery Order MT 605 Precious Metal Notice to Receive MT 606 Precious Metal Debt Advice MT 607 Precious Metal Credit Advice MT 608 Statement of a Metal Account MT 609 Statement of Metal Contracts MT 620 Metal Fixed Loan/Deposit Confirmation MT 643 Notice of Drawdown/Renewal MT 644 Advice of Rate and Amount Fixing MT 646 Payment of Principal and/or Interest MT 649 General Syndicated Facility Message MT 690 Advice of Charges, Interest and Other Adjustments MT 691 Request for Payment of Charges, Interest, and Other Expenses MT 692 Request for Cancellation MT 695 Queries MT 696 Answers MT 698 Proprietary Message MT 699 Free Format Message
Treasury Markets, Syndication MT 700 Issue of a Documentary Credit MT 701 Issue of a Documentary Credit MT 705 Pre-Advice of a Documentary Credit MT 707 Amendment to a Documentary Credit MT 710 Advice of a Third Banks Documentary Credit MT 711 Advice of a Third Banks Documentary Credit MT 720 Transfer of a Documentary Credit MT 721 Transfer of a Documentary Credit MT 730 Acknowledgment MT 732 Advice of Discharge MT 734 Advice of Refusal MT 740 Authorization to Reimburse MT 742 Reimbursement Claim MT 747 Amendment to an Authorization to Reimburse MT 750 Advice of Discrepancy MT 752 Authorization to Pay, Accept or Negotiate MT 754 Advice of Payment/Acceptance/Negotiation MT 756 Advice of Reimbursement or Payment MT 760 Guarantee
When banks interact with each other, they use special codes that indicate specific actions that the other bank should take. One of these codes is MT760, which places a hold on a certain amount of money in a client’s account to ensure they can’t spend it. This type of MT760 bank guarantee can help you prove that you have a certain amount of assets so you can get a loan or enter into another type of financial agreement without actually giving you access to the funds.
MT 767 Guarantee Amendment MT 768 Acknowledgment of a Guarantee Message MT 769 Advice of Reduction or Release MT 790 Advice of Charges, Interest and Other Adjustments MT 791 Request for Payment of Charges, Interest, and Other Expenses MT 792 Request for Cancellation MT 795 Queries MT 796 Answers MT 798 Proprietary Message MT 799 Free Format Message
The MT-799 is a free format SWIFT message type in which a banking institution confirms that funds are in place to cover a potential trade.
On occasion, this can be used as an irrevocable undertaking, depending on the language used in the MT-799, but is not a promise to pay or any form of bank guarantee in its standard format. The function of the MT-799 is simply to assure the seller that the buyer does have the necessary funds to complete the trade.
What does the SWIFT MT-799 option provide? An account with the SWIFT MT-799 capability allows bank-to-bank SWIFT electronic verification for Proof of Funds compliance with the SWIFT Category 7 “Treasury Markets & Syndication” message types. Often there is a misconception that a particular circumstance requires a SWIFT MT760message when the SWIFT MT-799 format provides the required bank confirmation for the application. There is a $1 million minimum account size for a SWIFT MT-799, and additional costs apply. The MT-799 is usually issued before a contract is signed before a letter of credit or bank guarantee is issued. After the seller’s bank has received the MT-799, it is then normally the seller’s bank's responsibility to send a POP (proof of product) to the buyer’s bank, at which point the trade continues towards commencement. The actual payment method commonly used is a documentary letter of credit or an MT-103 (wire transfer), which the seller presents to the issuing or confirming bank along with shipping documents. Once the bank confirmss the documents, the seller is then paid. An alternative method is to use a bank guarantee in place of a letter of credit. It is normally at the seller’s discretion which method of payment is used.
Travelers Cheques MT 800 T/C Sales and Settlement Advice [Single] MT 801 T/C Multiple Sales Advice MT 802 T/C Settlement Advice MT 824 T/C Inventory Destruction/Cancellation Notice MT 890 Advice of Charges, Interest and Other Adjustments MT 891 Request for Payment of Charges, Interest, and Other Expenses MT 892 Request for Cancellation MT 895 Queries MT 896 Answers MT 898 Proprietary Message MT 899 Free Format Message Cash Management and Customer Status MT 900 Confirmation of Debit MT 910 Confirmation of Credit MT 920 Request Message MT 935 Rate Change Advice MT 940 Customer Statement Message MT 941 Balance Report MT 942 Interim Transaction Report MT 950 Statement Message MT 970 Netting Statement MT 971 Netting Balance Report MT 972 Netting Interim Statement MT 973 Netting Request Message MT 985 Status Inquiry MT 986 Status Report MT 990 Advice of Charges, Interest and Other Adjustments MT 991 Request for Payment of Charges, Interest, and Other Expenses MT 992 Request for Cancellation MT 995 Queries MT 996 Answers MT 998 Proprietary Message MT 999 Free Format Message
What does the SWIFT MT-999 option provide?
To know what an MT999 is, one must be familiar with an MT799; SWIFT classifies both as “free format message.”
The difference is that for an MT799, banks must exchange a so-called BKE authenticator…which means a test key is automatically coded into the sent message and decoded at the receiving end.
An MT999 is the same, just without this test code. Therefore it’s considered unauthenticated, and MT999 messages have no value whatsoever unless confirmed via a separate test key.