MT799 : In dealing in Bank Guarantees (Demand Guarantees) and Letters of Credit (Documentary

Credits), one may hear the phrase ‘MT799’. This is the SWIFT Message Type that Bank Guarantees can
communicate authenticated free format messages securely. Inter-communicating banks may use this
Message Type on their SWIFT systems to communicate various types of messages and offer pre-advice
of intended transactions. This Message Type is free format, allowing the Operator to type freely various
messages connected with MT700 communications, i.e. Documentary Credits and Guarantees.

It is important not to get caught up in inter-bank jargon and would advise that this phrase is not used
when discussing Bank Guarantees as it neither concerns the client nor the recipient. Its meaning is
strictly inter-bank communication and nothing else. The MT799 is sent before the MT760 and is a
prelude to the sending of the MT760. Hence, the role of the MT799 is merely to notify and nothing else.
This document is sent days or weeks before the sending of the MT760. It is important to note that the
MT799 has no impact on the financial situation of an individual. .

MT760 : In dealing in Bank Guarantees, one may hear the phrase ‘MT760’. This is the SWIFT Message
Type that Bank Guarantees are sent and received by inter-communicating banks. When sending a Bank
Guarantee by SWIFT, the SWIFT Operator will enter the details on this Message Type relating to the
specifics of the Guarantee.

It is only Bank Guarantees that are sent with this Message Type 760. It is important not to get caught up
in inter-bank jargon and would advise that this phrase is not used when discussing Bank Guarantees as it
neither concerns the client nor the recipient. Its meaning is strictly inter-bank communication and
nothing else.

A Swift MT760 is a bank-responsible guarantee (LC, SBLC, BG) as well as Blocked Fund Letter issue
communicated bank to bank by the sender bank. MT760 sent upon instructions of its client (applicant) in
favor of a particular transactions or country party (beneficiary). In the case of Blocked Fund your issuing
bank will submit a bank to bank message stating that they have blocked funds for a particular time
frame specifically for the beneficiary of a receiving bank. Those funds are now an asset of the
Beneficiary bank account.

MT760 is a swift message used to block funds in favor of someone other than the owner, collateralize
the asset via this message, while allowing for loans and liens against it. your bank will charge 1-2% of the
value being blocked for this service.

The MT760 collateralize assets in the form of a swift guarantee, and by doing so, allows the beneficiary
to draw credit against it. This means, if the loan to the “trader” was defaulted on, the bank would seize
the collateral and you would be out of your money.
When MT760 is issued, the issuing bank puts a hold on the client's funds, blocking the client from using
them.
#MT 700
(MT means Message Type)
A Documentary Letter of Credit (DLC) or At Sight Letter of Credit (Sight LC) is a financial instrument,
issued by banks or trade finance institutions through a SWIFT MT700 message, where seller/exporters
receive payment from the buyer/importer, once the terms specified in the DLC are completely fulfilled.

Difference of #MT 760 and #MT 700

MT700 is used to indicate the terms and conditions of a commercial documentary credit or a standby
letter of credit which has been originated by the Sender (issuing bank). ...
MT760 is sent between banks involved in the issuance of a demand guarantee or a standby letter of
credit.

Difference between MT 760 and MT 799

The main difference between the MT760 swift message and the MT799 swift message is in when they
are sent. The MT799 is sent before the MT760 and is a prelude to the sending of the MT760. Hence, the
role of the MT799 is merely to notify and nothing else. This document is sent days or weeks before the
sending of the MT760. It is important to note that the MT799 has no impact on the financial situation of
an individual. This is another big difference that exists between the two documents.
The MT760 swift message will impact the financial condition of a client since it a verification of freezing
of funds by one bank. The MT799 swift message will have no impact on the financial situation of an
individual since it is sent before the funds are frozen. This is another difference between the two
documents. Another difference between the two documents is that the MT760 swift is sent after the
sending bank has set aside the required amount of money. The MT799 is sent before the sending bank
freezes the required amount of money in the purchasing individual’s bank account.
The global swift system is used by more than eight thousand financial institutions in sending and
receiving various financial statements and letters. The most prominent letter used in this system is the
MT760 swift and the MT799 swift. These two letters have a number of differences and similarities.

The main similarity between the two types of swift messages is in how they are sent. Both letters are
sent from one bank to another without necessarily consulting the client. Another similarity is that both
letters are sent during a significantly large transaction between two individuals. In spite of these
similarities, the two swift messages have numerous differences that individuals should be aware of.

MT103
An #MT103 is a standardized SWIFT payment message used specifically for international wire transfers.
MT103 is globally accepted as proofs of payment and include all payment details such as date, amount,
currency, sender and recipient. MT103 is also great for tracing payments which are missing or delayed
because they show the route of the payment between the banks. All banks and financial institutions
which make payments via SWIFT will have an MT103 for every payment