MT 700 Swift Message Field Specifications:

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 700 Issue of a Documentary Credit in trade finance?
MT 700 is a special swift message type that is used by issuing banks when issuing a letter of credit. Issuing banks send terms and conditions of the documentary credit with a MT 700 Issue of a Documentary Credit swift message type. MT 700 message is sent by the issuing bank to the advising bank. It is used to indicate the terms and conditions of a documentary credit which has been originated by the Sender (issuing bank). On below table you can find detailed explanations of fields used under MT 700 swift messages. You can reach a detailed page for each field by clicking the corresponding links.

MT 700 Issue of a Documentary Credit rules in trade finance?

  • When the documentary credit message exceeds the maximum input message length, additional documentary credit information should be transmitted via one or more MT 701s. Up to three MT 701s may be sent in addition to the MT 700.
  • Unless otherwise specified, a documentary credit advised to the beneficiary or another advising bank based on a SWIFT message constitutes an operative credit instrument.
  • For freely negotiable documentary credits, if the Receiver does not further transmit the credit by MT 710, it must add sentences to the effect that:
  • The advice to the beneficiary must be presented at each negotiation.
  • The negotiating bank must note each negotiation on that advice.
  • To avoid misunderstandings, where possible, banks are to use Bank Identifier Codes rather than expressions such as ourselves ,yourselves ,us, or you.
  • The advising bank must advise a documentary credit, including all its details, in a way that is clear and unambiguous to the beneficiary.
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What does MT 700 swift message mean? 
MT 700 is a type of swift message which is used by banks when issuing a letter of credit. MT 700 swift message is sent by the issuing bank to the advising bank. You can find detailed information about MT700 and its sub-fields on this page. keep reading...

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