Swift Messages – Letter of Credit Consultancy Services

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 27 February 20196 April 2019MT 700 Issue of a Documentary Credit, MT 760 Guarantee/Standby Letter of Credit, Swift, Swift Messages

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

MT 769 Advice of Reduction or Release

Ozgur Eker (CDCS) Swift Messages 11 October 20186 April 2019MT 769 Advice of Reduction or Release, Swift, Swift Messages

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

Status	Tag	Field Name
M	20	Transaction Reference Number
M	21	Related Reference
O	25	Account Identification
M	30	Date of Reduction or Release
O	32a	Amount of Charges
O	33B	Amount Reduced or Released
O	34B	Amount Outstanding
O	39C	Amount Specification
O	57a	Account With Bank
O	71B	Details of Charges
O	72	Sender 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.

MT 768 Acknowledgement of a Guarantee / Standby Message

Ozgur Eker (CDCS) MT 768 Acknowledgement of a Guarantee / Standby Message, Swift Messages 11 October 20186 April 2019Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	20	Transaction Reference Number
M	21	Related Reference
O	25	Account Identification
M	30	Date of Message Being Acknowledged
O	32a	Amount of Charges
O	57a	Account With Bank
O	71B	Details of Charges
O	72	Sender 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.

MT 767 Guarantee / Standby Letter of Credit Amendment

Ozgur Eker (CDCS) Swift Messages 11 October 20186 April 2019MT 767 Guarantee / Standby Letter of Credit Amendment, Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	27	Sequence of Total
M	20	Transaction Reference Number
M	21	Related Reference
M	23	Further Identification
O	30	Date
O	26E	Number of Amendment
M	31C	Date of Issue or Request to Issue
M	77C	Amendment Details
O	72	Sender 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 11 October 20186 April 2019MT 760 Guarantee/Standby Letter of Credit, Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	27	Sequence of Total
M	20	Transaction Reference Number
M	23	Further Identification
O	30	Date
M	40C	Applicable Rules
M	77C	Details of Guarantee
O	72	Sender 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 11 October 20186 April 2019MT 756 Advice of Reimbursement or Payment, Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	20	Sender's Reference
M	21	Presenting Bank's Reference
M	32B	Total Amount Claimed
M	33A	Amount Reimbursed or Paid
O	53a	Sender's Correspondent
O	54a	Receiver's Correspondent
O	72	Sender 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 10 October 20186 April 2019MT 754 Advice of Payment/Acceptance/Negotiation, Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	20	Sender's Reference
M	21	Related Reference
M	32a	Principal Amount Paid/Accepted/Negotiated
O	33B	Additional Amounts
O	71B	Charges Deducted
O	73	Charges Added
O	34a	Total Amount Claimed
O	53a	Reimbursing Bank
O	57a	Account With Bank
O	58a	Beneficiary Bank
O	72	Sender to Receiver Information
O	77A	Narrative
		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 10 October 20186 April 2019MT 752 Authorisation to Pay Accept or Negotiate, Swift, Swift Messages

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.

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

Status	Tag	Field Name
M	20	Documentary Credit Number
M	21	Presenting Bank's Reference
M	23	Further Identification
M	30	Date of Advice of Discrepancy or Mailing
O	32B	Total Amount Advised
O	71B	Charges Deducted
O	33a	Net Amount
O	53a	Sender's Correspondent
O	54a	Receiver's Correspondent
O	72	Sender 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

MT 750 Advice of Discrepancy

Ozgur Eker (CDCS) MT 750 Advice of Discrepancy 9 October 20186 April 2019MT 750 Advice of Discrepancy, Swift, Swift Messages

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.

What is MT 750 Advice of Discrepancy?

MT 750 is a swift message type that is sent by the bank to which documents have been presented, to the issuing bank.

It may also be sent to a bank nominated to pay/accept/negotiate/incur a deferred payment undertaking.

It is used to advise the Receiver that documents which have been presented are not in accordance with the terms and conditions of the credit.

The MT 750 is a request for authorization to take up documents. Authorization may be provided using an MT 752 Authorisation to Pay, Accept or Negotiate; a negative reply to the request may be provided using an MT 796 Answers.

MT 750 Advice of Discrepancy

Status	Tag	Field Name
M	20	Sender's Reference
M	21	Related Reference
M	32B	Principal Amount
O	33B	Additional Amount
O	71B	Charges to be Deducted
O	73	Charges to be Added
O	34B	Total Amount to be Paid
O	57a	Account With Bank
O	72	Sender to Receiver Information
M	77J	Discrepancies
		O : Optinal M : Mandatory

MT 750 Network Validated Rules
C1 If field 33B and/or field 71B and/or field 73 is/are present, field 34B must also be present.
C2 The currency code in the amount fields 32B and 34B must be the same.

Sample: MT 750 Advice of Discrepancy SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 750
Receiver : OELBATSW
Message Text
20 : Sender’s Reference
LC543217890
21 : Related Reference
IM-DOC 123/2563789
32B : Principal Amount Claimed
EUR45000
77J : Discrepancies
COPY CONSULAR CERTIFICATE OF ORIGIN NOT PRESENTED AND COPY LETTER OF DECLARATION FROM BENEFICIARY’S TO APPLICANT DOES NOT SHOW ORIGINAL CONSULAR INVOICE AND CERTIFICATE OF ORIGIN AIRMAILED TO APPLICANT.
End of Message Text/Trailer

MT 747 Amendment to an Authorisation to Reimburse

Ozgur Eker (CDCS) MT 747 Amendment to an Authorisation to Reimburse, Swift Messages 9 October 20186 April 2019MT 747 Amendment to an Authorisation to Reimburse, Swift, Swift Messages

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.

What is MT 747 Amendment to an Authorisation to Reimburse?

MT 747 is a swift message type that is sent by the bank which has issued an authorization to reimburse (issuing bank) to the reimbursing bank.

It is used to inform the Receiver about amendments to the terms and conditions of the credit relevant to the authorization to reimburse.

The amendment is to be considered as part of the authorization to reimburse.

On below table you can find detailed explanations of the fields used under MT 747 Amendment to an Authorisation to Reimburse swift messages.

MT 747 Amendment to an Authorisation to Reimburse

Status	Tag	Field Name
M	20	Documentary Credit Number
O	21	Reimbursing Bank's Reference
M	30	Date of the Original Authorisation to Reimburse
O	31E	New Date of Expiry
O	32B	Increase of Documentary Credit Amount
O	33B	Decrease of Documentary Credit Amount
O	34B	New Documentary Credit Amount After Amendment
O	39A	Percentage Credit Amount Tolerance
O	39B	Maximum Credit Amount
O	39C	Additional Amounts Covered
O	72	Sender to Receiver Information
O	77A	Narrative
		O : Optinal M : Mandatory

MT 747 Network Validated Rules

C1 At least one of the fields 31E, 32B, 33B, 34B, 39A, 39B, 39C, 72 or 77A must be present.
C2 If either field 32B or 33B is present, then field 34B must also be present.
C3 If field 34B is present, either field 32B or 33B must also be present.
C4 Either field 39A or 39B, but not both, may be present.
C5 The currency code in the amount fields 32B, 33B and 34B must be the same.

MT 747 Usage Rules

Terms and conditions which are not mentioned in the amendment message remain unchanged.
The cancellation of an MT 740 Authorisation to Reimburse takes the form of an amendment. The MT 747 must therefore be used.
There are special fields for amendments to the date of expiry and for increases or decreases in the amount of the documentary credit. All other amendments must be specified in field 77A.

Sample: MT 747 Amendment to an Authorisation to Reimburse SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 747
Receiver : OELBATSW
Message Text
20 : Sender’s Reference
LC543217890
30 : Date of Original Authorisation to Reimburse
130819
31E : New Date of Expiry
131230
32B : Increase of Documentary Credit Amount
USD5000
34B : New Documentary Credit Amount After Amendment
USD55000
End of Message Text/Trailer

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