Swift Codes Explained In Basic Terms
What are SWIFT Messages? SWIFT Message types for guaranteeing letters of credit. SWIFT stands for Society for Worldwide Interbank Financial Telecommunications. Essentially, it is used to securely transfer information and instructions through a system of codes. It works because SWIFT allocates each organization a specific code that is called the Bank Identifier Code (BIC)/ SWIFT Code.
What is an MT199? : A free format swift message equivalent of a banker to banker chat/ talking to one and other.
What is an MT799: A free format swift message type in which a banking institution confirms that funds are in place to cover a potential trade. The function of the MT799 is simply to assure the seller that the buyer does have the necessary funds to complete the trade.
What is an MT799 RWA? It is to establish bank responsibility to deliver the instrument. In the case of my seller, it will include the exact instrument specifics
i.e. CUSIP for the SBLC that was already written in the signed contract.
What is an MT103? It is a SWIFT payment message type/format used for cash transfer specifically for cross border/international wire transfer.
What is a MT760? Is a SWIFT message that can have specific instructions such as blocking the buyers funds in his own bank account for purchase of SBLC's or the instrument is then delivered by MT 760 Standard Brussels SWIFT, with copies sent to the Buyer directly from the Sending Bank Officer.