SWIFT MESSAGES IN

LETTER OF CREDIT
SWIFT
 Society for Worldwide Inter Bank Financial Telecommunication.
 A co-operative organization formed in Brussells in 1973.
 For Development of standardized global interactivity of financial
transactions .
 A uniform BIC - Business identifier code given for individual
banks/branches/Corporates
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 BIC is used by banks and payment providers when making international transfers.
 11-digit number to identify a particular bank and branch.
 The first four characters are used as the bank codes. Only letters can be used.
 The next two characters, only letters, are to describe or give the country code.
 The next two characters can be a mix of both numbers and letters. These are used
for location-based codes.
 The last three characters of the code can be digits and letters and are optional.
These last three characters in a SWIFT code are used to give details about the
branch code.
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Who Controls SWIFT?

 SWIFT is overseen by the G-10 central banks (Belgium, Canada, France, Germany,
Italy, Japan, The Netherlands, United Kingdom, United States, Switzerland, and
Sweden), as well as the European Central Bank, with its lead overseer being the
National Bank of Belgium.

How does RMA work Swift?

 RMA means Relationship Management Application

The RMA is a SWIFT-mandated authorisation that enables financial institutions

to define which counterparties can send them FIN messages. RMA is the
Relationship Management Application, though in common use when discussing
an RMA, what is described is the key exchange and authorisation process
between two institutions.
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What is a MT799?
 The SWIFT MT 799 is a free format SWIFT messaging type that banks use
securely communicate information regarding bank guarantees (demand
guarantees) and letters of credit (documentary letters of credit).
 MT 799 is not used for transferring funds or even for promising to transfer funds.
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What is MT754 swift message?
 MT754 Advice of Payment / Acceptance / Negotiation
 This message is sent by the paying, accepting or negotiating bank, or the
bank incurring a deferred payment undertaking, to the issuing bank.
 It may also be sent by the bank to which documents have been presented to
a bank that has been nominated to pay/accept.
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What is MT752?

 Authorization to Pay/Accept/Negotiate) MT752 is used to advise a bank which has

requested authorization to pay, accept, negotiate or incur a deferred payment undertaking
that the presentation of the documents may be honoured, notwithstanding the
discrepancies, provided they are otherwise in order.

What is MT 734?

 Advice of Refusal.

 This message is sent by the issuing bank to the bank from which it has received
documents related to a documentary credit. It may also be sent by the bank
nominated to pay/accept/negotiate/incur a deferred payment undertaking to the
bank from which it has received documents stating the discrepancies and rejecting the
documents.
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What is the difference between MT 700 and MT 760?

 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). ...

What is swift MT710?

 MT 710 is a special swift message type that is used by an advising bank, which has
received a documentary credit from the issuing bank or the non-bank issuer, to the
bank advising the beneficiary or another advising bank
SWIFT- DOCUMENTARY CREDITS
Documentary credit message types are defined in category 7 by swift
Max
MT MT Name Purpose
length
700 Issue of a Documentary Credit Indicates the terms and conditions of a documentary credit 10000
701 Issue of a Documentary Credit Continuation of MT 700 for fields 45a,46a and 47a 10000
705 Pre-advice of a Documentary Credit Provides brief advice of a Documentary credit for which full 2000
details will follow
707 Amendment to Documentary Credit Inform the Receiver of the amendments to the terms and 2000
conditions of a Documentary Credit
710 Advice of a third bank’s Advises the Receiver of the terms and conditions of an other 10000
Documentary credit bank’s Documentary credit
711 Advice of a third bank’s Continuation of MT 710 for fields 45a, 46a,and 47a. 10000
Documentary credit
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Max
MT MT Name Purpose
length
720 Transfer of a Documentary Advises the transfer of a documentary credit, or part thereof, 10000
Credit to the bank advising the second beneficiary
721 Transfer of a Documentary Continuation of MT 720 for fields 45a,46a and 47a 10000
Credit
730 Acknowledgement of a Acknowledges the receipt of a Documentary credit message 2000
Documentary Credit and may indicate that the message has been forwarded
according to instructions. It may also be used to account for
bank charges or to advise of acceptance or rejection of an
amendment of a Documentary credit

732 Advise of Discharge Advise that the documents received with discrepancies have 2000
been taken up.
734 Advice of refusal Advises the refusal of documents that are not in accordance 2000
with the terms and conditions of a Documentary Credit
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Max
MT MT Name Purpose
length
740 Authorization to Reimburse Requests the Receiver to honor claims for reimbursement of 2000
payments or negotiations under a Documentary Credit
742 Reimbursement claim Provides a reimbursement claim to a bank authorized to 2000
reimburse the sender or its branch for its
payments/negotiations.
747 Amendment to an authorization to Informs the reimbursing bank the amendments to the terms 2000
reimburse and conditions of a Documentary credit, relative to the
authorization to reimburse.

750 Advice of Discrepancy Advises of discrepancies and requests authorization to honor 2000
documents presented that are not in accordance with the
terms and conditions of the Documentary Credit.
SWIFT- DOCUMENTARY CREDITS
Max
MT MT Name Purpose
length
752 Authorization to Pay, Accept or Advises the bank which has requested authorization to pay, 2000
Negotiate accept, negotiate or incur a deferred payment undertaking
that the presentation of the documents may be honored not
withstanding the discrepancies provided they are otherwise
in order.
754 Advice of payment/Acceptance/ Advises that the documents have been presented in 2000
Negotiation accordance with the terms of a Documentary Credit and are
being forwarded as instructed. This message type also
handles the payment/negotiation
756 Advice of Reimbursement or Advises of the reimbursement or payment for a drawing 2000
Payment under a documentary credit in which no specific
reimbursement instructions or payment provisions were
given
A ny Questions…