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MT103 GPI (Global Payments Innovation)

MT103 GPI (Global Payments Innovation)

What It Is

An MT103 GPI is a customer credit transfer sent through SWIFT under the GPI framework, providing end-to-end tracking, transparency, and faster settlement.

It is not a guarantee, not a proof of funds, and not a commitment — it is a payment instruction.

Core Requirements to SEND or RECEIVE an MT103 GPI

1. Approved Wealth Management / Operating Account

  • Sender must have an active funded account

  • Receiver must have an approved receiving account

  • Account names must exactly match SWIFT fields

  • KYC/KYB fully approved on both sides

No account = no MT103

2. Available Cleared Funds

  • Funds must be:

    • Unencumbered

    • Not blocked

    • Not conditional

  • MT103 cannot be issued against notes, assets, or promises

3. GPI-Enabled Banks

  • Sending bank must be SWIFT GPI member

  • All correspondent banks in the chain must be GPI-capable

  • UETR (Unique End-to-End Transaction Reference) is mandatory

4. Correct SWIFT Data Fields

Mandatory fields include:

  • :20: Transaction Reference

  • :23B: Bank Operation Code

  • :32A: Value Date / Currency / Amount

  • :50: Ordering Customer

  • :59: Beneficiary Customer

  • :57A: Beneficiary Bank

  • :71A: Charges (SHA / OUR / BEN)

  • UETR for GPI tracking

Errors = rejection or return.

5. Compliance & Screening

  • Sanctions screening (OFAC / UN / EU)

  • Transaction purpose clarity

  • Source of funds verification

  • High-value payments require EDD

What MT103 GPI DOES Provide

✅ Real-time payment tracking
✅ Timestamped movement of funds
✅ Visibility of intermediary banks
✅ Faster settlement (often same-day)
✅ Reduced investigation risk

What MT103 GPI DOES NOT Do

❌ It does not prove funds before sending
❌ It does not replace escrow
❌ It does not secure a transaction
❌ It does not act as collateral
❌ It does not confirm future payment

Common Misuse (Red Flags 🚩)

  • “MT103 will be sent as proof”

  • “MT103 before funds are released”

  • “MT103 backed by an asset”

  • “Conditional MT103”

These are invalid and often associated with fraud.

Bank Rule (Simple & Absolute)

An MT103 GPI is issued only AFTER funds are debited from a real account.

Relationship to Securities / Notes

  • MT103 GPI is never used to:

    • Deliver notes

    • Monetize securities

    • Evidence insurance

  • Securities settle via:

    • DTC / Euroclear / Clearstream

    • Not via MT103

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