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MT 769 Advice of Reduction or Release :











Swift is a provider of secure message platform for financial institutions. Swift is used mainly by banks. Swift messages have been 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 swift platform. Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as bank guaranteescash in advance paymentdocumentary collections, open accounts and bank payment obligations.

What is MT 769 Advice of Reduction or Release in trade finance?
MT 769 is a special swift message type that is used by a bank which has received a guarantee to the bank which issued the guarantee. Banks send their acknowledgement of the issuing bank of the guarantee that issuing bank has been released of all liability for the amount specified in field 33B or field 39C. with a MT 769 Advice of Reduction or Release swift message type. On below table you can find detailed explanations of fields used under MT 769 swift messages. You can reach a detailed page for each field by clicking the corresponding links.















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.

MT 769 Advice of Reduction or Release rules in trade finance?
  • 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.

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 35 (being cable costs of USD 20 and commission charges of USD 30) at its account at Bank of New York, New York.
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What does MT 769 Advice of Reduction or Release swift message mean? 
MT 769 is a type of swift message which is used by banks when advise the receiver that it has been released of all liability for the amount specified in this swift message. MT 769 swift message is sent by the by a bank which has received a guarantee to the bank which issued the guarantee. You can find detailed information about MT769 and its sub-fields on this page.



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Keywords

  • Issues or requests the issue of a guarantee
  • Amends a guarantee which has been previously issued or requests the amendment of a guarantee which the Sender has previously requested to be issued
  • Acknowledges the receipt of a guarantee message and may indicate that action has been taken according to instructions
  • Advises that a bank has been released of its liability for aspecified amount under its guarantee




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 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
SWIFT Message
Sender : SBCOUS66
Message Type : 769
Receiver : NWBKGB2L
Message Text
Field 20 : Transaction Reference Number: 2PG8761234
Field 21 : Related Reference: PG8761234
Field 30 : Date of Release : 030112
Field 32B : Amount of Charges : USD 50
Field 33B : Amount Reduced : USD15000
Field 34B : Amount Outstanding : USD12000
Field 57A : Account With Bank : BONYUS33
Field 71B : Details of Charges : 71B:/TELECHAR/USD20, /COMM/USD30,
End of Message Text/Trailer
  1. The reference of the guarantee.
  2. The Sender's charges for the transaction.
  3. The amount by which National Westminster Bank's liability has been reduced.
  4. The amount of liability remaining under the guarantee.
  5. The bank (Bank of New York) at which the Sender wishes to receive payment of its charges.
  6. An explanation of the charges specified in field 32B.
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