Professional Documents
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SWIFT
SWIFT
Compliance Services
West Kingdom
SWIFT Messages
Messages are identified by structured configuration.
All messages start with the letter MT.
This is followed by 3 digit number .
1st digit – represents category relating to a particular
financial category .
2nd digit – represents the group denoting that messages
are related to similar parts of a transaction .
3rd digit – denotes the individual message
e.g. - MT 202
Financial institutions transfer ,third party
SWIFT Messages
MT0nn System messages
MT1nn Customer Payments
MT2nn Financial institutions transfer
MT3nn FX,Money Market and Derivatives
MT4nn Collections and cash letters
MT5nn Securities Markets
MT6nn Precious metals and syndications
MT7nn Documentary credits and Guarantees
MT8nn Travellers cheques
MT9nn Cash Management and Customer Status
HOW SWIFT WORKS ?
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Swift message
Working of the SWIFT
Assume a customer of a Bank of America branch in
New York wants to send money to his friend who
banks at the UniCredit Banca branch in Venice.
The New York customer can walk into his Bank of
America branch with his friend’s account number and
UnicaCredit Banca’s unique SWIFT code for its Venice
branch.
Bank of America will send a payment transfer SWIFT
message to the UniCredit Banca branch over the
secure SWIFT network.
Once Unicredit Banca receives the SWIFT message
about the incoming payment, it will clear and credit
the money to the Italian friend’s account.
Advantages
a high level of security of money transfers worldwide;
the ability to transfer and receive any sum range;
calculation of funds in any currency;
minimum commission;
the ability to receive or send funds at almost any bank of the world;
if the system fails, it will compensate for losses.
Disadvantages
transfer can take 7 days;
due to the involvement of several banks in the process, the system
may fail.