What Is SWIFT?

SWIFT is the Society for Worldwide Interbank Financial Telecommunications. This is a Belgian organization, founded in 1973 in response to a UN request to implement electronic payment systems for banks. The SWIFT messaging system is a series of standardized messages which have authority in over eight thousand banks in over two hundred countries. It is based on the UN EDIFACT message format, so has been around since 1985.

Why Are SWIFT Messages so commonly used?

A SWIFT message can be sent and received within seconds, and though they are still subject to processing time, this is much quicker than sending communications through the mail, and is much more secure. Swift will use their own physical cables, and will never be sent on the Internet. It cannot be intercepted, cannot be duplicated and iwith security that compare to military s[ecifications. They do not use TCP/IP but is based on OSI, typically X.400 protocol.

SWIFT Codes

There are SWIFT codes which correspond to various types of procedures. 'MT' is just "Message Tag" and is then followed by a Message Class (here "7") and a two digit procedure number. Class 7 is "Letters of Credit and Guarantees", and procedure 60 is "blocked funds".

What Happens When My Bank Issues An MT-760?

When an MT-760 is issued, the issuing bank puts a hold on the client's funds, blocking the client from using them. This will allow the beneficiary's bank to allow this to e.g. establish a ine of credit. backed by the funds on the client's account. So, the seller can now use this to pay subcontractors and get equipment ready for delivery. It is therefore imperative that an agreement exists between the parties that governs the use of the blocked funds, so that the client is liable to pay for goods or services never received.

Is A MT-760 Negotiable?

No. Once a MT-760 has been issued, it is not negotiable.

How Do I Get A MT-760?

All banks on the international Swift network can issue MT760. However financial brokers, lawyers, equity fund manager, investment funds and private bankers cannot issue Swift procedures. The bank may demand that you use a special account for this procedure.

Daniel Goodman

CALL ME DIRECT +1.214.347.9253

Toll Free: +1.888.557.0389

Toll Free Fax: +1.800.315.4197

Local Phone +1.214.347.9253

International +1.214.347.9253

International FAX +1.214.347.9253

Email: contact@swiftproofoffunds.com

Skype: swift.pof

Web : www.swiftproofoffunds.com

2711 N. Haskell Ave

Suite 550

Dallas, TX 75204

The MT100 is an interbank message which basically the sending bank advises the receiving bank to expect funds from the sending bank.

An mT202 is the message that follows the MT100 advising the receiving bank the account number and beneficiary to pay the funds to.

An MT299 is what is known as a 'tested' message. It is an interbank message which is secure and the beneficiary bank can act on the message.

The above is genneraly correct, depending how specific you want to be there is no MT 100 in the current SWIFT user hand book; However 100 usually refers to the range of messages from 101-199. See below

Category 1 Message TypesThe following table lists all message types defined in category 1.

For each message type, there is a short description, an indicator whether the message type requires authentication (Y/N), the maximum message length on input (2,000 or 10,000 characters), whether the use of the message requires registration with SWIFT for use in a message user group (Y) or not (N) and whether value date ordering (VDO) can be requested for the message (Y/N). Value date ordering criteria are described in the Standards MT General Information.MTMT NamePurposeAuthen.Max.

LengthMUGVDO101Request For TransferRequests to debit a customer's account held at another institutionY10,000YY102

102+Multiple Customer Credit TransferConveys multiple payment instructions between financial institutionsY10,000YY103

103+Single Customer Credit TransferInstructs a funds transferY10,000NY103 REMITSingle Customer Credit TransferInstructs a funds transferY10,000YY104Direct Debit and Request for Debit TransferConveys direct debit instructions or requests for direct debits between financial institutionsY10,000YY105EDIFACT EnvelopeAn envelope which conveys a 2k EDIFACT messageY2,000YN107General Direct DebitTo order the debit of a debtor's account and to collect payment from this accountY10,000YY110Advice of ChequeAdvises or confirms the issuance of a cheque to the drawee bankY2,000NY111Request for Stop Payment of a ChequeRequests the drawee bank to stop payment of a chequeY2,000NY112Status of a Request for Stop Payment of a ChequeIndicates action(s) taken in attempting to stop payment of a chequeY2,000NY190Advice of Charges, Interest and Other AdjustmentsAdvises an account owner of charges, interest and other adjustmentsY2,000NN191Request for Payment of Charges, Interest and Other ExpensesRequests payment of charges, interest or other expensesY2,000NN192Request for CancellationRequests the Receiver to consider cancellation of the message identified in the requestY2,000NN195QueriesRequests information relating to a previous message or amendment to a previous messageY2,000NN196AnswersResponds to an MT 195 Query or MT 192 Request for Cancellation or other message where no specific message type has been provided for a responseY2,000NN198Proprietary MessageContains formats defined and agreed to between users and for those messages not yet liveY10,000NN199Free Format MessageContains information for which no other message type has been defined