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MT 740 Authorisation to Reimburse :











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 740 Authorisation to Reimburse in trade finance?

MT 740 is a special swift message type that is sent by the issuing bank to the reimbursing bank. It is used to request the Receiver to honour claims for reimbursement of payment(s) or negotiation(s) under a documentary credit. The MT 740 authorises the reimbursing bank to debit the account of the Sender, or one of the Sender's branches if so indicated, for reimbursements effected in accordance with the instructions in the MT 740. On below table you can find detailed explanations of fields used under MT 740 Authorisation to Reimburse swift messages























MT 740 Network Validated Rules
  • C1 Either field 39A or 39B, but not both, may be present.
  • C2 When used, fields 42C and 42a must both be present.
  • C3 Either fields 42C and 42a together, or field 42M alone, or field 42P alone may be present. No other combination of these fields is allowed.
  • C4 Either field 58a or 59, but not both, may be present.

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What does MT 740 Authorisation to Reimburse swift message mean? 
MT 740 is a type of swift message which is used to request the Receiver to honour claims for reimbursement of payment(s) or negotiation(s) under a documentary credit



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Keywords


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MT 740 Authorisation to Reimburse
Status
Tag
Field Name
M
20
Documentary Credit Number
O
25
Account Identification
M
40F
Applicable Rules
O
31D
Date and Place of Expiry
O
58a
Negotiating Bank
O
59
Beneficiary
M
32B
Credit Amount
O
39A
Percentage Credit Amount Tolerance
O
39B
Maximum Credit Amount
O
39C
Additional Amounts Covered
M
41a
Available With ... By ...
O
42C
Drafts at ...
O
42a
Drawee
O
42M
Mixed Payment Details
O
42P
Deferred Payment Details
O
71A
Reimbursing Bank's Charges
O
71B
Other Charges
O
72
Sender to Receiver Information
O : Optinal           M : Mandatory
Sample 1 : MT 740 Authorisation to Reimburse SWIFT Message

SWIFT Message
Sender   : AMCONL2A
Message Type : 740
Receiver : OELBATSW
Message Text
20 : Documentary Credit Number
LC543217890
40F : Applicable Rules
URR LATEST VERSION
32B : Credit Amount
USD45000
41A : Available With ... By ...
NOMISESW BY ACCEPTANCE
71A : Reimbursing Bank's Charges
CLM
72 : Sender to Receiver Information
RESTRICTED TO CLAIMING BANK'S ACCEPTANCE COMMISSION
End of Message Text/Trailer