{"id":2719,"date":"2018-10-05T00:57:22","date_gmt":"2018-10-05T04:57:22","guid":{"rendered":"http:\/\/www.letterofcredit.biz\/?p=2719"},"modified":"2023-07-02T11:17:48","modified_gmt":"2023-07-02T15:17:48","slug":"swift-messages-in-letters-of-credit","status":"publish","type":"post","link":"https:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/05\/swift-messages-in-letters-of-credit\/","title":{"rendered":"Swift Messages in Letters of Credit"},"content":{"rendered":"<p>SWIFT is the short form of &#8220;Society for Worldwide Interbank Financial Telecommunication&#8221;.<\/p>\n<p>Swift defines its role in international financial transactions on its website as follows.<\/p>\n<p>\u201cOur role is two-fold. We provide the proprietary communications platform, products and services that allow our customers to connect and exchange financial information securely and reliably. We also act as the catalyst that brings the financial community together to work collaboratively to shape market practice, define standards and consider solutions to issues of mutual interest.\u201d<\/p>\n<p>In simple terms swift has two main roles in international financial transactions,<\/p>\n<ul>\n<li>firstly, SWIFT provides a secure, fast, and reliable <span style=\"color: #33cccc;\"><strong><span style=\"color: #339966;\">communication platform<\/span><\/strong><\/span> with which financial institutions can communicate with each other.<\/li>\n<li>secondly, SWIFT establishes <span style=\"color: #339966;\"><strong>standard message formats<\/strong><\/span> which can be used in its platform.<\/li>\n<\/ul>\n<p>Today banks use SWIFT platform to communicate with each other, for example when sending a wire transfer, issuing a letter of credit, advising a discrepancy message etc.<\/p>\n<p>Specifically, swift message types related to the letters of credit and bank guarantees are classified under Category 7 as shown below.<\/p>\n<h4><strong>Category 7-Documentary Credits and Guarantees<\/strong><\/h4>\n<p><strong>Part 1-Documentary Credits<\/strong><\/p>\n<p><a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/05\/mt-700-swift-message-field-specifications\/\">MT 700-Issue of a Documentary Credit<\/a><br \/>\nMT 701-Issue of a Documentary Credit<br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/06\/mt-705-pre-advice-of-a-documentary-credit\/\">MT 705-Pre-Advice of a Documentary Credit<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/06\/mt-707-amendment-to-a-documentary-credit\/\">MT 707-Amendment to a Documentary Credit<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/06\/mt-710-advice-of-a-third-banks-or-a-non-banks-documentary-credit\/\">MT 710-Advice of a Third Banks Documentary Credit<\/a><br \/>\nMT 711-Advice of a Third Banks Documentary Credit<br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/07\/mt-720-transfer-of-a-documentary-credit\/\">MT 720-Transfer of a Documentary Credit<\/a><br \/>\nMT 721-Transfer of a Documentary Credit<br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/08\/mt-730-acknowledgement\/\">MT 730-Acknowledgement<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/08\/mt-732-advice-of-discharge\/\">MT 732-Advice of Discharge<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/08\/mt-734-advice-of-refusal\/\">MT 734-Advice of a Refusal<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/08\/mt-740-authorisation-to-reimburse\/\">MT 740-Authorization to Reimburse<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/08\/mt-742-reimbursement-claim\/\">MT 742-Reimbursement Claim<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/09\/mt-747-amendment-to-an-authorisation-to-reimburse\/\">MT 747-Amendment to an Authorisation to Reimburse<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/09\/mt-750-advice-of-discrepancy\/\">MT 750-Advice of Discrepancy<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/10\/mt-752-authorisation-to-pay-accept-or-negotiate\/\">MT 752-Authorisation to Pay, Accept or Negotiate<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/10\/mt-754-advice-of-payment-acceptance-negotiation\/\">MT 754-Advice of Payment\/Acceptance\/Negotiation<\/a><br \/>\n<a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/11\/mt-756-advice-of-reimbursement-or-payment\/\">MT 756-Advice of Reimbursement or Payment<\/a><\/p>\n<p><strong>Part 2-Guarantees<\/strong><\/p>\n<p><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/11\/mt-760-guarantee-standby-letter-of-credit\/\">760 Guarantee<\/a><br \/>\n<a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/11\/mt-767-guarantee-standby-letter-of-credit-amendment\/\">767 Guarantee Amendment<\/a><br \/>\n<a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/11\/mt-768-acknowledgement-of-a-guarantee-standby-message\/\">768 Acknowledgement of a Guarantee Message<\/a><br \/>\n<a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/11\/mt-769-advice-of-reduction-or-release\/\">769 Advice of Reduction or Release<\/a><\/p>\n<p><strong>Part 3-Common Group<\/strong><\/p>\n<p>790 Advice of Charges,<br \/>\n791 Request for Payment of Charges, Interest and Other Expenses<br \/>\n792 Request for Cancellation<br \/>\n795 Queries<br \/>\n796 Answers<br \/>\n798 Proprietary Message<br \/>\n799 Free Format Message<\/p>\n<h4><strong>Usage Examples:<\/strong><\/h4>\n<ul>\n<li>MT700 Issue of a Documentary Credit message type should be used when issuing a letter of credit<\/li>\n<li>MT 734 Advice of a Refusal message type should be used when sending a refusal message.<\/li>\n<\/ul>\n<p>PS: MT means Message Type.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SWIFT is the short form of &#8220;Society for Worldwide Interbank Financial Telecommunication&#8221;. Swift defines its role in international financial transactions on its website as follows. \u201cOur role is two-fold. We provide the proprietary communications platform, products and services that allow<\/p>\n","protected":false},"author":1,"featured_media":2731,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[2,231],"tags":[238,239],"class_list":["post-2719","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-featured","category-swift-messages","tag-swift","tag-swift-messages","post_format-post-format-video"],"_links":{"self":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/2719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2719"}],"version-history":[{"count":0,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/2719\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media\/2731"}],"wp:attachment":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}