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MT 734 Advice of Refusal :











Swift is a provider of secure message platform for financial institutions mainly for banks. Swift messages send 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 send a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly advising banks send their 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 paymentdocumentary collections, open accounts and bank payment obligations.

What is MT 734 Advice of Refusal in trade finance?

MT 734 message is sent by the issuing bank to the bank from which it has received documents related to a documentary credit. 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 that the Sender considers the documents, as they appear on their face, not to be in accordance with the terms and conditions of the credit and that, consequently, it refuses them for the discrepancies stated. The Sender also provides the Receiver with details regarding the disposal of the documents. This message type may also be used for claiming a refund.  On below table you can find detailed explanations of fields used under MT 734 swift messages














MT 734 Advice of Refusal Network Validated Rules
  • C1 If field 73 is presentfield 33a must also be present.
  • C2 The currency code in the amount fields 32A and 33a must be the same.
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What does MT 734 Advice of Refusal swift message mean? 
MT 734 is used to advise the Receiver that the Sender considers the documents, as they appear on their face, not to be in accordance with the terms and conditions of the credit and that, consequently, it refuses them for the discrepancies stated. 



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Keywords


  • an issuing bank should discourage any attempt bythe applicant to include copies of contract as integral part of leter of credit
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Status
Tag
Field Name
M
20
Sender's TRN
M
21
Presenting Bank's Reference
M
32A
Date and Amount of Utilisation
O
73
Charges Claimed
O
33a
Total Amount Claimed
O
57a
Account With Bank
O
72
Sender to Receiver Information
M
77J
Discrepancies
M
77B
Disposal of Documents
O : Optinal           M : Mandatory
Sample 1 : MT 734 Advice of Refusal SWIFT Message
SWIFT Message
Sender   : AMCONL2A
Message Type : 734
Receiver : OELBATSW
Message Text
20 : Sender's TRN
EXP54321
21 : Presenting Bank's Reference
IMP145322
32A : Date and Amount of Utilisation
130921GBP100000
73 : Charges Claimed
YOUR CHARGES GBP 100, CABLE GBP30, INTEREST GBP20,
33A : Total Amount Claimed
130927GBP100150
77J : Discrepancies
PARTIAL SHIPMENT EFFECTED ORIGINAL COMMERCIAL INVOICE NOT PRESENTED
77B : Disposal of Documents
/HOLD/
End of Message Text/Trailer