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Comprehensive Overview of SWIFT Message Types

Comprehensive Overview of SWIFT Message Types

Introduction

SWIFT Message Types (MTs) are standardized message formats used globally for secure communication between financial institutions. Each MT is designated by a three-digit number, where the first digit indicates the message category, and the next two digits specify the message function. These messages support a wide range of financial transactions, including payments, trade finance, securities, treasury operations, and more.

SWIFT Message Categories

  • Category 1: Customer Payments and Cheques

  • Category 2: Financial Institution Transfers

  • Category 3: Treasury Markets

  • Category 4: Collections and Cash Letters

  • Category 5: Securities Markets

  • Category 6: Precious Metals and Syndications

  • Category 7: Documentary Credits and Guarantees

  • Category 8: Travellers' Cheques

  • Category 9: Cash Management and Customer Status

Detailed Key SWIFT MTs by Category

Category 1: Customer Payments and Cheques

  • MT 101 – Request for Transfer: A customer’s instruction to a bank to make one or more payments. Used for bulk payment orders.

  • MT 103 – Single Customer Credit Transfer: The standard message for cross-border customer credit transfers. Contains payment instructions including details about the sender, receiver, amount, currency, and remittance info. Supports straight-through processing (STP).

  • MT 102 – Multiple Customer Credit Transfer: For processing multiple customer transfers in one message.

Category 2: Financial Institution Transfers

  • MT 200 – Financial Institution Transfer for its Own Account: Bank-to-bank payments without customer involvement.

  • MT 202 – General Financial Institution Transfer: Transfers between banks, often to cover customer payments.

  • MT 202 COV – Cover Payment: Special format used to provide details on the origin of funds in correspondent banking, linked to MT 103 transactions to comply with AML regulations.

Category 3: Treasury Markets

  • MT 300 – Foreign Exchange Confirmation: Used to confirm foreign exchange transactions between counterparties.

  • MT 320 – Fixed Loan/Deposit Confirmation: Confirms fixed-term deposit or loan agreements.

  • MT 330 – Call/Notice Loan Confirmation: For call or notice loan agreements.

Category 4: Collections and Cash Letters

  • MT 400 – Advice of Payment: Advises on payments made.

  • MT 410 – Acknowledgement of Receipt: Confirms receipt of documents for collection.

  • MT 412 – Advice of Acceptance: Confirms acceptance of drafts under collection.

Category 5: Securities Markets

  • MT 500 – Instruction to Register: Instructions related to securities registration.

  • MT 520 – Settlement Instruction: Instructions for securities settlement.

  • MT 540 – Receive Free Confirmation: Confirms receipt of securities free of payment.

  • MT 544 – Deliver Free Confirmation: Confirms delivery of securities free of payment.

Category 6: Precious Metals and Syndications

  • MT 600 – Precious Metals Trade Confirmation: Confirmation of precious metal trades.

  • MT 620 – Syndicate Subscription: Used in syndicated loans.

Category 7: Documentary Credits and Guarantees

  • MT 700 – Issue of Documentary Credit: Advises issuance of a letter of credit with terms and conditions.

  • MT 701 – Amendment to Documentary Credit: Communicates amendments to existing documentary credits.

  • MT 707 – Notification of Amendment: Notifies about changes to credit terms.

  • MT 710 – Advice of a Third Bank’s Documentary Credit: Advises a credit issued by another bank.

  • MT 720 – Transfer of Documentary Credit: Used for transferring a credit to a third party.

  • MT 730 – Acknowledgment: Confirms receipt of documents.

  • MT 740 – Authorization to Pay, Accept, or Negotiate: Authorizes payment or negotiation under credit terms.

  • MT 747 – Amendment to a Guarantee: Used to amend the terms of guarantees.

  • MT 760 – Issue of Guarantee: Issues bank guarantees or standby letters of credit.

  • MT 767 – Amendment to Guarantee: Amends bank guarantees or standby letters.

Category 8: Travellers' Cheques

  • Messages related to traveller’s cheque issuance and management.

Category 9: Cash Management and Customer Status

  • MT 900 – Confirmation of Debit: Confirms a debit to an account.

  • MT 910 – Confirmation of Credit: Confirms a credit to an account.

  • MT 940 – Customer Statement Message: Provides end-of-day account statements to customers.

  • MT 942 – Interim Transaction Report: Reports intraday transactions.

  • MT 950 – Statement Message: Detailed statement messages for cash management.

Additional Notes

  • Structured vs Free Format: Most MTs are structured with mandatory and optional fields, designed for automation and accuracy. Some, like MT 799, are free-format, allowing flexible, narrative communication.

  • New ISO 20022 Migration: SWIFT is progressively migrating from MT messages to ISO 20022 XML-based messages, which offer richer data and improved standardization.

Importance of US Capital Private Bank

SWIFT MT messages are critical to US Capital Private Bank’s operations, ensuring secure, reliable, and standardized communication with global financial institutions. This supports a wide range of services, including international payments, trade finance, securities processing, and treasury management.

📬 Contact US Capital Private Bank

📧 Email: [email protected]
🌐 Website: https://uscapitalprivatebank.com
📞 Phone: +971529926005

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