Swift Messages

What are the Differences Between MT 700 and MT 760?

Ozgur Eker (CDCS) Bank Guarantees, Commercial Letter of Credit, Letter of Credit Types, MT 700 Issue of a Documentary Credit, MT 760 Guarantee/Standby Letter of Credit, Standby Letter of Credit, Swift Messages , , ,
What are the Differences Between MT 700 and MT 760?

MT700 and MT760 swift message types that banks use when issuing documentary credits and guarantees, respectively.

  • Banks use MT700 when issuing a commercial letter of credit or a standby letter of credit.
  • Banks use MT760 when issuing a demand guarantee or a standby letter of credit.

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). This message is sent by the issuing bank to the advising bank.

MT760 is is sent between banks involved in the issuance of a demand guarantee or a standby letter of credit. It is used to issue a guarantee or to request the Receiver to issue a guarantee.

Comparison Between MT700 and MT760

comparison between mt700 and mt760

SWIFT Sanctions Statement

Ozgur Eker (CDCS) News, Swift Messages , ,
SWIFT Sanctions Statement

Swift declares that any decision to impose sanctions on countries or individual entities rests solely with the competent government bodies and applicable legislators.

Being EU-based, SWIFT complies fully with all applicable European law.

According to the statement SWIFT will not respond to individual calls and pressure to disconnect financial institutions from its network.

SWIFT Statement

Brussels, 6 October 2014 – SWIFT and its stakeholders have received calls to disconnect institutions and entire countries from its network – most recently Israel and Russia.

SWIFT is a neutral global cooperative company set up under Belgian law.

It was established by and for its members to create a shared worldwide messaging service and a common language for international transactions.

SWIFT provides services to over 10,500 financial institutions and corporations in over 200 jurisdictions around the world.

SWIFT is a critical service provider to the financial industry and plays a pivotal role in supporting international commerce and trade.

SWIFT services are designed to facilitate its customers’ compliance with sanctions and other regulations, however SWIFT will not make unilateral decisions to disconnect institutions from its network as a result of political pressure.

SWIFT regrets the pressure, as well as the surrounding media speculation, both of which risk undermining the systemic character of the services that SWIFT provides its customers around the world.

As a utility with a systemic global character, it has no authority to make sanctions decisions.

Any decision to impose sanctions on countries or individual entities rests solely with the competent government bodies and applicable legislators. Being EU-based, SWIFT complies fully with all applicable European law.

SWIFT will not respond to individual calls and pressure to disconnect financial institutions from its network.

About SWIFT

Founded in 1973, SWIFT is a global provider of secure financial messaging services headquartered in Belgium.

The Company is operated for the collective benefit of its Shareholders, to facilitate the study, creation, utilization and operation of the means necessary for the telecommunication, transmission and routing of private, confidential and proprietary financial messages.

SWIFT has a wide and growing range of financial crime compliance tools, including sanctions screening and sanctions testing services.

The cooperative’s focus is to help its users in meeting their responsibilities in complying with national and international regulations.

SWIFT is purely a messaging service provider and has no involvement in or control over the underlying financial transactions that are mentioned in their messages carried through its system.

Responsibility for ensuring that individual financial transactions comply with sanctions laws therefore rests with the financial institutions handling them, and their competent authorities.

Bank Guarantee Sample in MT 760 Swift Format

Ozgur Eker (CDCS) Bank Guarantees, MT 760 Guarantee/Standby Letter of Credit , ,
Bank Guarantee Sample in MT 760 Swift Format

Bank guarantee means any signed undertaking, however named or described, providing for payment on presentation of a complying demand.

MT 760 is a swift message type that is used by issuing banks when issuing a guarantee or a standby letter of credit.

Issuing banks send terms and conditions of a guarantee or a standby letter of credit with a MT 760 Guarantee / Standby Letter of Credit swift message type.

On this page you can find a bank guarantee sample in MT 760 swift format.

This is a real life example.

I have just changed the commercial information on the bank guarantee such as the name of the guarantor bank, the name of the advising bank, the name of the beneficiary and the applicant.

Date of issue and expiry date as well as the guarantee amount also changed for commercial reasons.

Bank Guarantee Sample in MT 760 Swift Format

++++++++++++++++ INCOMING MESSAGE++++++++++++++++

Message Receive Time : 03.08.2014 – 11:00
Message Type : 760 – GUARANTEE / STANDBY LETTER OF CREDIT
Delivery : N
Record Number: 0006000261000
Sender: DEBRDEGGXXX DEUTSCHE EXPORT BANK AG-FRANKFURT AM MAIN – GERMANY
Receiver: TLHLTRISXXX TURKISH IMPORT BANK A.S.- ISTANBUL – TURKEY
Value Date: 0
Currency:
Amount: ,00
Branch: TUM
Department: MUTUAL
Session Number: 4400
Sequence Number (ISN): 960000

===========================================

27: Sequence of Total
1/1

20: Transaction Reference Number
100BGS1100000

23: Further Identification
ISSUE

30:Date
Date : 02.08.2014

40C: Applicable Rules
URDG

77C: Details of Guarantee

WE HEREBY KINDLY REQUEST YOU TO ADVISE OUR FOLLOWING GUARANTEE TO BENEFICIARY WITHOUT ANY OBLIGATION ON YOUR PART:

QUOTE

PAYMENT GUARANTEE NO. 100BGS1100000
DATED 02 AUGUST 2014
.
THE GUARANTOR: DEUTSCHE EXPORT BANK AG-FRANKFURT AM MAIN – GERMANY

THE APPLICANT: SOOO `BELKELETE`, BELARUS, 220000 MINSK, ZAKOVASKAYA STR.10, ROOM 20

THE BENEFICIARY: HANDELSON MAKINA SANAYI VE TICARET A.S., GUZELYALI MAH. PAZARSUYU MEVKII BODRUM-MUGLA, TURKEY.

AS GUARANTOR, WE HAVE BEEN INFORMED THAT THE BENEFICIARY AND THE APPLICANT, HAVE CONCLUDED CONTRACT NO.1 DD JULY 17,
2014, CALLED `THE CONTRACT`, FOR SUPPLY OF CS-12000 KF (SUNFLOWER SEED, HAZELNUT AND ETC.) ROASTING LINE, CALLED `THE GOODS` FOR THE TOTAL AMOUNT OF EUR 240.000,00.

ACCORDING TO THE CONTRACT TERMS THE APPLICANT`S OBLIGATIONS TO PAY FOR THE SUPPLIED GOODS MUST BE SECURED BY A BANK GUARANTEE ISSUED IN THE BENEFICIARY`S FAVOR IN THE AMOUNT OF EUR 180.000,00.

IN CONSIDERATION OF THE AFORESAID, WE, AS GUARANTOR, HEREBY IRREVOCABLY UNDERTAKE TO PAY TO THE BENEFICIARY ANY AMOUNT(S) IN EURO CLAIMED BY THE BENEFICIARY UP TO THE MAXIMUM OF EUR 180.000,00. (IN WORDS: ONE HUNDRED EIGHTY THOUSAND EURO) UPON PRESENTATION OF THE ORIGINAL OF THE BENEFICIARY`S COMPLYING DEMAND IN PAPER FORM WITH REFERENCE TO THIS GUARANTEE NUMBER STATING THAT THE BENEFICIARY SUPPLIED THE GOODS TO THE APPLICANT IN CONFORMITY WITH THE CONTRACT TERMS AND THE APPLICANT HAS FAILED TO MEET A PART OF OR ALL HIS PAYMENT OBLIGATIONS THERE UNDER IN DUE TIME IN THE AMOUNT CLAIMED BY THE BENEFICIARY UNDER THIS GUARANTEE, BUT NOT EXCEEDING EUR 180.000,00 IN THE AGGREGATE.

ANY DEMAND UNDER THIS GUARANTEE WILL BE HONORED BY THE GUARANTOR ONLY WHEN:

  1. PRESENTED TO THE GUARANTOR AFTER 15 CALENDAR DAYS FROM THE DATE OF SHIPMENT INDICATED IN ANY RELEVANT INTERNATIONAL ROAD WAYBILL (CMR) (INCLUDING THE DATE OF SHIPMENT IN CALCULATION),
  2. SUPPORTED BY COPIES OF THE FOLLOWING DOCUMENTS PRESENTED IN PAPER FORM:
    A) BENEFICIARY`S INVOICE INDICATING THE CONTRACT NUMBER AND DATE, AND
    B) INTERNATIONAL ROAD WAYBILL (CMR) CONTAINING DATE OF SHIPMENT,
  3. PRESENTED THROUGH THE INTERMEDIARY OF TURKISH IMPORT BANK A.S.- ISTANBUL – TURKEY WHICH WILL
    A) FORWARD IT TO THE GUARANTOR UNDER THEIR COVER LETTER TOGETHER WITH THE DOCUMENTS AS PER POINT 2. OF PRESENT PARAGRAPH, AND
    B) CONFIRM TO THE GUARANTOR BY AUTHENTICATED SWIFT MESSAGE FORMAT MT799 TO THE GUARANTOR`S SWIFT ADDRESS DEBRDEGGXXX THE AUTHENTICITY OF SIGNATURE(S) APPEARING ON THE BENEFICIARY`S DEMAND.

LANGUAGE OF ALL REQUIRED DOCUMENTS UNDER THIS GUARANTEE IS ENGLISH.

THIS GUARANTEE IS VALID UNTIL 26.09.2014, CALLED `THE EXPIRY DATE`. AFTER THE EXPIRY DATE THE GUARANTOR`S LIABILITIES HEREUNDE WILL EXPIRE IN FULL AND AUTOMATICALLY. THE ORIGINAL OF THE BENEFICIARY`S DEMAND TOGETHER WITH REQUIRED DOCUMENTS MUST BE RECEIVED BY THE GUARANTOR

A) ON OR BEFORE THE EXPIRY DATE,
B) AT THE PLACE OF PRESENTATION – DEUTSCHE EXPORT BANK AG-FRANKFURT AM MAIN – GERMANY, EXCEPT FOR DOCUMENT 3B) OF PRESENT GUARANTEE WHICH MUST BE PRESENTED IN ELECTRONIC FORM TO GUARANTOR`S SWIFT ADDRESS: DEBRDEGGXXX.

ALL CHARGES UNDER THE GUARANTEE ARE FOR THE PRINCIPAL`S ACCOUNT.

THIS GUARANTEE IS SUBJECT TO THE UNIFORM RULES FOR DEMAND GUARANTEES (URDG) 2010 REVISION, ICC PUBLICATION NO.758.

UNQUOTE

THIS IS THE OPERATIVE INSTRUMENT AND NO MAIL CONFIRMATION WILL FOLLOW.
PLEASE CONFIRM EXECUTION.
KIND REGARDS

MT 769 Advice of Reduction or Release

Ozgur Eker (CDCS) Swift Messages , ,
MT 769 Advice of Reduction or Release

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 769 Advice of Reduction or Release?

This message is sent by a bank which has received a guarantee to the bank which has issued the guarantee.

It may also be sent by a bank which has been requested to issue a guarantee to the bank which requested the issuance of the guarantee.

This message may also be used for Standby Letters of Credit.

It is used to advise the Receiver that it has been released of all liability for the amount specified in field 33B or field 39C.

The Sender’s charges may also be accounted for in this message.

MT 769 Advice of Reduction or Release

StatusTagField Name
M20Transaction Reference Number
M21Related Reference
O25Account Identification
M30Date of Reduction or Release
O32aAmount of Charges
O33BAmount Reduced or Released
O34BAmount Outstanding
O39CAmount Specification
O57aAccount With Bank
O71BDetails of Charges
O72Sender to Receiver Information
O : Optinal           M : Mandatory

MT 769 Network Validated Rules

  • C1 Either field 25 or 57a, but not both, may be present.
  • C2 Either field 33B or field 39C, but not both, must be present.
  • C3 If field 32D is present, then field 57a must not be present.
  • C4 If field 71B is present, then field 32a must also be present.
  • C5 The currency code in the amount fields 33B and 34B must be the same.

Sample MT 769 Advice of Reduction or Release:

Narrative: On 12 January 2003, Swiss Bank Corporation, San Francisco, advises National Westminster Bank Plc, London (reference 2PG8761234), that it has been released of all liability for an amount of US Dollars 15,000.

The outstanding obligation under the guarantee is US Dollars 12,000.

Swiss Bank Corporation would like to receive payment of its charges of US Dollars 50 (being cable costs of USD 20 and commission charges of USD 30) at its account at Bank of New York, New York.

Sample MT 769 Advice of Reduction or Release

MT 768 Acknowledgement of a Guarantee / Standby Message

Ozgur Eker (CDCS) MT 768 Acknowledgement of a Guarantee / Standby Message, Swift Messages ,
MT 768 Acknowledgement of a Guarantee / Standby Message

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 768 Acknowledgement of a Guarantee / Standby Message?

MT 768 is a swift message type that is used by a bank which has received a guarantee to the bank which issued the guarantee or an amendment thereto.

Banks send their acknowledgement of receipt of any message relating to a bank guarantee or a standby letter of credit with a MT 768 Acknowledgement of a Guarantee / Standby Message swift message type.

MT 768 Acknowledgement of a Guarantee / Standby Message

StatusTagField Name
M20Transaction Reference Number
M21Related Reference
O25Account Identification
M30Date of Message Being Acknowledged
O32aAmount of Charges
O57aAccount With Bank
O71BDetails of Charges
O72Sender to Receiver Information
O : Optinal           M : Mandatory

MT 768 Network Validated Rules

  • C1 Either field 25 or 57a, but not both, may be present.
  • C2 If field 32D is present, field 57a must not be present.
  • C3 If field 71B is present, field 32a must also be present.

MT 768 Acknowledgement of a Guarantee / Standby Message Rules

This message type is sent by a bank which has received a guarantee to the bank which issued the guarantee or an amendment thereto. It may also be sent by a bank which has been requested to issue a guarantee to the bank which requested the guarantee or an amendment thereto.

It is used to acknowledge receipt of any message relating to a guarantee and, where applicable, to indicate that action has been taken according to the instructions.

This message may also be used for Standby Letters of Credit.

The Sender’s charges may also be accounted for in this message.

Sample MT 768 Acknowledgement of a Guarantee / Standby Message:

Narrative: On 20 August 2014, Bahamas Bank Corporation, Detroit, acknowledges to Iron Bank of Braavos, London (reference 123BROVLD), receipt of the amendment to the issue of Performance Guarantee No. PG20140102, as well as the beneficiary’s acceptance of the amendment.

Sample MT 768 Acknowledgement of a Guarantee / Standby Message

MT 767 Guarantee / Standby Letter of Credit Amendment

Ozgur Eker (CDCS) Swift Messages , ,
MT 767 Guarantee / Standby Letter of Credit Amendment

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 767 Guarantee / Standby Letter of Credit Amendment?

MT 767 is a swift message type that is used by issuing banks when amending or requesting the amendment of the bank guarantee or standby letter of credit.

Issuing banks send terms and conditions of the bank guarantee amendment or a standby letter of credit amendment with a MT 767 Guarantee / Standby Letter of Credit Amendment swift message type.

MT 767 Guarantee / Standby Letter of Credit Amendment

StatusTagField Name
M27Sequence of Total
M20Transaction Reference Number
M21Related Reference
M23Further Identification
O30Date
O26ENumber of Amendment
M31CDate of Issue or Request to Issue
M77CAmendment Details
O72Sender to Receiver Information
O : Optinal           M : Mandatory

MT 767 Guarantee / Standby Letter of Credit Amendment Rules:

  • This message is sent by a bank which has issued a guarantee to the bank to which the guarantee was issued. It may also be sent by a bank which has requested the issuance of a guarantee to the bank to which the request for a guarantee was sent.
  • It is used to amend or request the amendment of the guarantee.
  • This message may also be used for Standby Letters of Credit.
  • The guarantee amendment is to be considered as part of the guarantee.
  • The terms and conditions of the original guarantee or instruction(s) not mentioned in the message remain the same.
  • The cancellation of a guarantee, ie, MT 760, takes the form of an amendment. The MT 767 must therefore be used.
  • Since a SWIFT message is restricted to the maximum input message length, more than one MT 767 may need be required to accommodate all the details of the guarantee amendment.

What Does Current Bank Guarantee Rules (URDG 758) or Standby Letter of Credit Rules (ISP 98) Say About Amendment of a Bank Guarantee or a Standby Letter of Credit?

  • URDG 758 states that an amendment issued without the consent of the beneficiary is not binding on the beneficiary except where the guarantee otherwise provides.
  • As per latest demand guarantee rules the guarantor is irrevocably bound by an amendment as of the time it issues the amendment and unless until the beneficiary rejects the amendment.
  • Uniform rules on demand guarantees signifies that an amendment of the guarantee may be rejected by the beneficiary until the time it notifies its acceptance of the amendment or makes a presentation that complies only with the guarantee as amended.
  • Partial acceptance of an amendment is not allowed as per URDG 758 rules and will be deemed to be notification of rejection of the amendment.
  • A provision in an amendment to the effect that the amendment shall take effect unless rejected within a certain time shall be disregarded.
  • According to ISP 98 rules an amendment of a standby letter of credit is binding when issued, for this reason it is enforceable against an issuer whether or not the applicant authorized its issuance, the issuer received a fee, or the beneficiary received or relied on the the amendment.

MT 760 Guarantee / Standby Letter of Credit

Ozgur Eker (CDCS) MT 760 Guarantee/Standby Letter of Credit, Swift Messages , ,
MT 760 Guarantee / Standby Letter of Credit

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 760 Guarantee / Standby Letter of Credit?

MT 760 is a swift message type that is used by issuing banks when issuing a guarantee or a standby letter of credit.

Issuing banks send terms and conditions of a guarantee or a standby letter of credit with a MT 760 Guarantee / Standby Letter of Credit swift message type.

On below table you can find detailed explanations of the fields used under MT 760 swift messages.

MT 760 Guarantee / Standby Letter of Credit

StatusTagField Name
M27Sequence of Total
M20Transaction Reference Number
M23Further Identification
O30Date
M40CApplicable Rules
M77CDetails of Guarantee
O72Sender to Receiver Information
O : Optinal           M : Mandatory

MT 760 Guarantee / Standby Letter of Credit Rules:

  • This message is sent between banks involved in the issuance of a guarantee.
  • It is used to issue a guarantee or to request the Receiver to issue a guarantee.
  • This message may also be used for Standby Letters of Credit.
  • Any applicable rules must be indicated in field 40C. If no rules are applicable, this must also be indicated (code “NONE”). If the guarantee is subject to rules other than URDG (Uniform Rules for Demand Guarantees, International Chamber of Commerce, Paris, France) or ISP (International Standby Practices, International Chamber of Commerce, Paris, France) it must be indicated in field 40C using the code OTHR.
    The definition of this message type does not specify any characteristics or underlying agreements of the actual guarantee. Therefore, all specific terms, conditions and details of the guarantee are to be specified in field 77C.
  • Since a SWIFT message is restricted to the maximum input message length, more than one MT 760 may be required to accommodate all the details of the guarantee.

What Does Current Bank Guarantee Rules (URDG 758) or Standby Letter of Credit Rules (ISP 98) Say About the Issuance of a Bank Guarantee or a Standby Letter of Credit?

According to URDG 758 a guarantee is deemed to be issued when it leaves the control of the guarantor.

URDG 758 states that a guarantee is irrevocable on issue even if it does not state this.

As per URDG 758 a guarantee may be advised to a beneficiary through an advising bank. By advising a guarantee, the advising bank certifies to the beneficiary, that it has satisfied itself as to the apparent authenticity of the guarantee. Advising bank also certifies that the advice accurately reflects the terms and conditions of the guarantee as received from the issuing bank.

According to ISP 98 a standby letter of credit is an irrevocable, independent, documentary, and binding undertaking when issued and need not so state.

ISP 98 states that unless an advice states otherwise, it signifies that:

  • (i) the advisor has checked the apparent authenticity of the advised message in accordance with standard letter of credit practice; and
  • (ii) the advice accurately reflects what has been received.

MT 756 Advice of Reimbursement or Payment

Ozgur Eker (CDCS) MT 756 Advice of Reimbursement or Payment, Swift Messages , ,
MT 756 Advice of Reimbursement or Payment SWIFT Message

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 756 Advice of Reimbursement or Payment?

MT 756 is a special swift message type that is sent by the issuing bank to the bank from which it has received documents or by the reimbursing bank to the bank from which it has received a reimbursement claim.

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.

It is used to advise the Receiver about reimbursement or payment, to that bank, for a drawing under a documentary credit for which no specific reimbursement instructions or payment provisions were provided.

The account relationship between the Sender and the Receiver is used unless otherwise expressly stated in the message.

MT 756 Advice of Reimbursement or Payment

StatusTagField Name
M20Sender's Reference
M21Presenting Bank's Reference
M32BTotal Amount Claimed
M33AAmount Reimbursed or Paid
O53aSender's Correspondent
O54aReceiver's Correspondent
O72Sender to Receiver Information
O : Optinal           M : Mandatory

MT 756 Network Validated Rules

  • C1 The currency code in the amount fields 32B and 33A must be the same.

MT 756 Usage Rules

  • The code RCB may only be used in field 72 if both fields 53a and 54a are present in the message.

Sample: MT 756 Advice of Reimbursement or Payment SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 756
Receiver : OELBATSW
Message Text

20 : Sender’s Reference
LC543217890

21 : Presenting Bank’s Reference
IMLC 123/25544

32B : Total Amount Claimed
EUR45000

33A : Amount Reimbursed or Paid
131230EUR45000

53A : Sender’s Correspondent
OELBAT2L

End of Message Text/Trailer

MT 754 Advice of Payment/Acceptance/Negotiation

Ozgur Eker (CDCS) MT 754 Advice of Payment/Acceptance/Negotiation, Swift Messages , ,
MT 754 Advice of Payment/Acceptance/Negotiation

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 754 Advice of Payment/Acceptance/Negotiation?

MT 754 is a special swift message type that 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. It is used to advise the Receiver that documents were presented in accordance with the credit terms and are being forwarded as instructed.

The MT 754 may also be used:

  • for the settlement of the payment/negotiation
  • as a pre-notification of a reimbursement claim from the claiming bank to the issuing bank
  • as a pre-debit notification from the claiming bank to the issuing bank.

Note: Where a pre-debit notification from the reimbursing bank to the issuing bank is required, banks should use the MT 799 Free Format message, specifying the future date of debit.

MT 754 Advice of Payment/Acceptance/Negotiation

StatusTagField Name
M20Sender's Reference
M21Related Reference
M32aPrincipal Amount Paid/Accepted/Negotiated
O33BAdditional Amounts
O71BCharges Deducted
O73Charges Added
O34aTotal Amount Claimed
O53aReimbursing Bank
O57aAccount With Bank
O58aBeneficiary Bank
O72Sender to Receiver Information
O77ANarrative
O : Optinal           M : Mandatory

MT 754 Network Validated Rules

  • C1 Either field 72 or 77A may be present, but not both.
  • C2 Either field 53a or 57a may be present, but not both.
  • C3 The currency code in the amount fields 32a and 34a must be the same.

Sample: MT 754 Advice of Payment/Acceptance/Negotiation SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 754
Receiver : OELBATSW
Message Text

20 : Sender’s Reference
LC543217890

21 : Related Reference
IMLC 123/25544

32A : Principal Amount Paid
130817EUR45000

73 : Charges Added
COMMISSION EUR250

34A : Total Amount Claimed
130817EUR45250

53A : Reimbursing Bank
DELBATSW
End of Message Text/Trailer

MT 752 Authorisation to Pay, Accept or Negotiate

Ozgur Eker (CDCS) MT 752 Authorisation to Pay Accept or Negotiate, Swift Messages , ,
MT 752 Authorisation to Pay, Accept or Negotiate

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 752 Authorisation to Pay, Accept or Negotiate?

MT 752 is a special swift message type that is sent by the issuing bank, or the nominated bank if so authorized by the issuing bank, to a paying/accepting/negotiating bank in response to a request for authorization to pay/accept/negotiate/incur a deferred payment undertaking previously requested via an MT 750 Advice of Discrepancy or otherwise.

It is used to advise the Receiver that documents may be taken up, notwithstanding the discrepancies, provided they are otherwise in order.

MT 752 Authorisation to Pay, Accept or Negotiate

StatusTagField Name
M20Documentary Credit Number
M21Presenting Bank's Reference
M23Further Identification
M30Date of Advice of Discrepancy or Mailing
O32BTotal Amount Advised
O71BCharges Deducted
O33aNet Amount
O53aSender's Correspondent
O54aReceiver's Correspondent
O72Sender to Receiver Information
O : Optinal           M : Mandatory

MT 752 Network Validated Rules

  • C1 If fields 32B and 71B are both present, then field 33a must also be present.
  • C2 The currency code in the amount fields 32B and 33a must be the same.

MT 752 Usage Rules

  • When cover is to be remitted via other banks, these banks are specified in fields 53a and 54a.
  • The code RCB may only be used in field 72 if both fields 53a and 54a are present in the message.

Sample: MT 752 Authorisation to Pay, Accept or Negotiate

SWIFT Message
Sender : AMCONL2A
Message Type : 752
Receiver : OELBATSW

Message Text

20 : Documentary Credit Number
LC543217890

21 : Presenting Bank’s Reference
LIS22312

23 : Further Identification
ACCEPT

30 : Date of Advice of Discrepancy
130815
End of Message Text/Trailer