SWIFT PAYMENTS & OTHERS
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What is S.W.I.F.T.
• SWIFT - Society for Worldwide Interbank Financial Telecommunications
• SWIFT is a worldwide community. Over 7,000 financial institutions in 197 countries connect to one another through
SWIFT. Collectively, these institutions, active in payments, securities, treasury and trade services, exchange
millions of messages valued in trillions of dollars every business day.
• The U.S. Federal reserve defines SWIFT as… A message writing system that connects worldwide participating
banks, primarily for the purpose of communicating payment information. Frequently, the SWIFT message is only
part of an international payment.
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SWIFT Message Overview
• SWIFT processes information - data, text, or commands - in the form of messages. From the user's point of view,
messages are sent:
o from one user to another. For example, normal banking messages such as customer transfers
o from tfrom a user to the system. For example, requests for information such as retrieval requests
o he system to a user. For example, responses to requests, such as for the text of retrieved messages, or
unsolicited reports, such as the Daily Check.
• A message may consist of one or more headers, which contain reference information, a body, which contains the
text of the message, and one or more trailers, which are added for control purposes.
• When a message is received by the system, the text is checked for conformity with mandatory standards, and is
rejected if not acceptable.
• SWIFT messages are represented by a three-digit number, for example, MT 103, where the first digit defines the
Message Category.
o Categories 1 – 9: user-to-user messages, Category 0: system messages
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Message Categories
MT102,MT102 Remit,MT103 Remit,
Category 1 : Customer Transfers, Cheques MT103+, MT110, MT111, MT112, MT192,
MT195, MT198, MT199
MT200, MT210, MT202, MT202 Cover
Category 2 : Financial Institution Transfers
MT203, MT298
Treasury Markets, Foreign Exchange, MT300
Category 3 :
Money Markets & Derivatives
Category 4 : Collections, Cash Letters MT400
Category 5 : Securities Markets
Category 6 : Precious Metals, Syndications
Category 7 : Documentary Credits, Guarantees MT760, MT768, MT769, MT767
Category 8 : Travelers Cheques
Category 9 : Cash Management, Customer Status MT900, MT910, MT950
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MT 100 Series
This message is sent by or on behalf of the
financial institution of the ordering customer(s)
to another financial institution for payment to
the beneficiary customer.
It requests the Receiver to credit the
beneficiary customer(s) directly or indirectly
through a clearing mechanism or another
financial institution, or to issue a cheque to the
Multiple Customer Credit Transfer beneficiary.
MT 102 This message is used to convey multiple
MT102 - Detail view for message payment instructions between financial
([Link]) institutions for clean payments. Its use is
subject to bilateral/multilateral agreements
between Sender and Receiver.
Amongst other things, these bilateral
agreements cover the transaction amount
limits, the currencies accepted and their
settlement. The multiple payments checklist
included below is recommended as a guide for
institutions in the setup of their agreements.
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MT 100 Series (Contd..)
Single Customer Credit Transfer This message allows the exchange of single
MT 103
MT103 - Detail view for message ([Link]) customer credit transfers using all MT 103 fields
MT [Link] [Link] The MT 103 REMIT requires
[Link] - Single Customer Credit Transfer registration in the Extended Remittance
Information message user group. This message
[Link] - Detail view for message user group allows its subscribers to exchange
([Link]) MT 103 REMIT messages with an extended
amount of remittance information in field 77T.
MT103 + MT 103+ or MT [Link] format validation is
[Link] - Single Customer Credit Transfer triggered by 3:code STP in validation flag field
[Link] - Detail view for message ([Link]) 119 ({3:{119:STP}}) of the user header of the
message block 3
MT110 Advice of Cheque(s) Advises or confirms the issuance of a cheque to
MT110 - Detail view for message ([Link]) the drawee bank
MT111 Request for Stop Payment of a Cheque Requests the drawee bank to stop payment of a
MT111 - Detail view for message ([Link]) cheque
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MT 100 Series (Contd..)
Indicates action(s) taken in attempting to stop
payment of a cheque. his message type is sent
by the drawee bank (on which a cheque is
Status of a Request for Stop Payment of a
drawn) to the drawer bank or the bank acting
MT 112 Cheque
on behalf of the drawer bank.
MT112 - Detail view for message ([Link])
It is used to indicate what actions have been
taken in attempting to stop payment of the
cheque referred to in the message.
MT192 - Request for Cancellation Requests the Receiver to consider cancellation
MT 192
MT192 - Detail view for message ([Link]) of the message identified in the request
MT195 – Queries Requests information relating to a previous
MT 195
MT195 - Detail view for message ([Link]) message or amendment to a previous message
Contains formats defined and agreed to
MT198 - Proprietary Message
MT 198 between users and for those messages not yet
MT198 - Detail view for message ([Link])
live
MT199 - Free Format Message Contains information for which no other
MT 199
MT199 - Detail view for message ([Link]) message type has been defined
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MT 200 Series
MT200 - Financial Institution Transfer for its
Requests the movement of the Sender's funds
MT 200 Own Account
to its account at another financial institution
MT200 - Detail view for message ([Link])
Requests the movement of funds between
financial institutions, except if the transfer is
MT202 - General Financial Institution Transfer
MT 202 related to an underlying customer credit
MT202 - Detail view for message ([Link])
transfer that was sent with the cover method, in
which case the MT 202 COV must be used.
The MT 202 COV is a General Use message, that
is, no registration in a Message User Group is
[Link] - General Financial Institution necessary to send and receive this message. The
MT [Link] Transfer message contains a mandatory sequence to
[Link] - Detail view for message ([Link]) include information on an underlying customer
credit transfer and has a maximum message
length of 10,000 characters.
MT203 - Multiple General Financial Institution
MT 203 Transfer Multiple of the MT 202
MT203 - Detail view for message ([Link])
MT210 - Notice to Receive Notifies the Receiver that it will receive funds
MT 210
MT210 - Detail view for message ([Link]) for the Sender's account
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MT 300, 400 & 700 Series
MT300 - Foreign Exchange Confirmation Confirms information agreed to in the
MT 300
MT300 - Detail view for message ([Link]) buying/selling of two currencies
MT400 - Advice of Payment Advises of a payment under a collection or part
MT 400 Purpose of the message MT400 thereof. It also handles the settlement of
MT400 - Detail view for message ([Link]) proceeds
MT700 - Issue of a Documentary Credit Indicates the terms and conditions of a
MT 700
MT700 - Detail view for message ([Link]) documentary credit
MT707 - Amendment to a Documentary Credit Informs the Receiver of amendments to the
MT 707
MT707 - Detail view for message ([Link]) terms and conditions of a documentary credit
MT760 - Guarantee/Standby Letter of Credit Issues or requests the issue of a guarantee or
MT 760
MT760 - Detail view for message ([Link]) standby letter of credit
MT768 - Acknowledgement of a Acknowledges the receipt of a guarantee or
Guarantee/Standby Message standby letter of credit message and may
MT 768
MT768 - Detail view for message ([Link]) indicate that action has been taken according to
instructions
MT769 - Advice of Reduction or Release Advises that a bank has been released of its
MT 769 MT769 - Detail view for message ([Link]) liability for a specified amount under its
guarantee or standby letter of credit
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MT 300, 400 & 700 Series (Contd..)
MT900 - Confirmation of Debit
Advises an account owner of a debit to its
MT 900 Purpose of the message MT900
account
MT900 - Detail view for message ([Link])
MT910 - Confirmation of Credit Advises an account owner of a credit to its
MT 910
MT910 - Detail view for message ([Link]) account
Provides balance and transaction details of an
MT940 - Customer Statement Message
MT 940 account to a financial institution on behalf of
MT940 - Detail view for message ([Link])
the account owner
MT950 - Statement Message Provides balance and transaction details of an
MT 950
MT950 - Detail view for message ([Link]) account to the account owner
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What are Payments?
• Movement of funds from one party to another or one location and another.
• Payments take place between banks, branches and/or clients of banks.
• Payments may be executed for the benefit of the bank or one of its clients.
Why are Payments so important to banks?
• One of the services that banks perform in today’s global economy is to facilitate international and domestic
monetary transfers. These often involve currency exchange.
• Source of revenues through Fee Generation.
• Service to Customers
• Maximize revenue through liquidity management.
• Risk Management
• Regulatory compliance
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Message Structure
• All SWIFT messages conform to a defined block structure. Each block of a message contains data of a particular
type and is used for a particular purpose.
• A typical SWIFT user-to-user message consists of:
• {1: BASIC HEADER BLOCK}
• {2: APPLICATION HEADER BLOCK}
• {3: USER HEADER BLOCK}
• {4: TEXT BLOCK}
• {5: TRAILER BLOCK}
• Blocks 1, 2 and 3 relate to header information, Block 4 contains the text of the message, and Block 5 contains
trailer information.
• Blocks 3, 4 and 5 may contain sub-blocks, that is blocks within blocks, or fields delimited by field tags,
depending on the nature of the message.
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Message Example
Block 1 - contains SENDER BANK BIC {1:F01BCITITMMAXXX012000123}
Block 2 – contains RECEIVER BANK BIC {2:I1030840010605BNPAFRPPAXXX0120078960106051051U3}
Block 3 (optional) – contains MUR {3:{119:STP}{103:EBA}{108:BCITITMMA50906}}
Block 4 – message content or text block {4:
:20:1234567890
:32A:010317EUR450,00
:50:MASTERS IMPORT
RUE DES ARBRES 119
CAMBRAI
:52A:BNPAFRPPCAM
:59:/123456
JOHN
-}
Block 5 – trailer info {5:{MAC:12345678}{CHK:123456789ABC}}
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Message Example
Block 1 - contains SENDER BANK BIC {1:F01BCITITMMAXXX012000123}
Block 2 – contains RECEIVER BANK BIC {2:I1030840010605BNPAFRPPAXXX0120078960106051051U3}
Block 3 (optional) – contains MUR {3:{119:STP}{103:EBA}{108:BCITITMMA50906}}
Block 4 – message content or text block {4:
:20:1234567890
:32A:010317EUR450,00
:50:MASTERS IMPORT
RUE DES ARBRES 119
CAMBRAI
:52A:BNPAFRPPCAM
:59:/123456
JOHN
-}
Block 5 – trailer info {5:{MAC:12345678}{CHK:123456789ABC}}
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Sample MT103 Transfer
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Sample MT103 Transfer (Contd..)
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Sample MT103 Transfer (Contd..)
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Sample MT103 Transfer (Contd..)
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Sample MT103 Transfer (Contd..)
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BIC’s
• BIC - Bank Identifier Code
• A BIC is a unique SWIFT “address” for a financial institution
• 11 characters (in block 1 and 2 of message an additional character is added)
• BEI – Business Entity Identifier: used to identify non-financial institutions in field 50 and 59 of a message
BIC Format
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BICs Consist of 4 (5) Components
CITI 33 XXX
US
ABN GB A/B/1
PIC
A 2L
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BIC Examples
• SOGEFRPPXXX – Society Generale Head office in Paris
• CITIUS33XXX – Citibank’s head office in New York.
• CITINPKAXXX – Citibank, Nepal
• CITIUS33SFO – Citibank San Francisco office
IBAN
• International Bank Account Number used to identify an account held by a financial institution
• Length differs per country
• Structure:
• Country code: 2 letter country code as specified in ISO 3166, of the country in which the bank/branch servicing
the IBAN resides
• Check digits: calculated 2 digits
• Basic Bank Account Number (BBAN) : up to 30 alphanumeric characters, 0-9, A-Z (only uppercase), no
separators
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Cross Border Payment
{1:F01ABNANL2AXXXX0000000000}{2:I101ABNANL2WAXXXN}{3:{108:2017042566660444}}{4:
:20:GR12015053601007
:28D:1/1
:30:170310
:21:GR12115053601007
:23E:URGP
:32B:AUD1,11
:50H:/NL34ABNA0628013353
NTB CBP OPDRACHTEN
ABN AMRO INVESTIGATIONS
1102 BS AMSTERDAM GR1612452695
:57D://AU123123
ANZ Bank
Sydney
:59:/3153153728
X.X. HOEF EN/OF
A.B.C. ZADELMAKER
1111 AB BERGEN NH
:70:THIS IS A TEST MSG
-}
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SEPA Payment
{1:F01ABNANL2AXXXX0000000000}{2:I101ABNANL2WAXXXN}{3:{108:0041712852307}}{4:
:20:GR1712852307
:28D:1/1
:30:170509
:21:GR1712852307
:32B:EUR2,22
:50H:/NL34ABNA0628013353
NTB CBP OPDRACHTEN
ABN AMRO INVESTIGATIONS
1102 BS AMSTERDAM
:52A:ABNANL2A
:59:/NL19RABO0340133899
X.X. HOEF EN/OF
A.B.C. ZADELMAKER
1111 AB BERGEN NH
:70:GR1712852307
:71A:SHA
-}
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Bank to Bank Transfers
{1:F01ABNANL2AXXXX0000000000}{2:I202ABNANL2WAXXXN}{3:{108:2017051533330001}}{4:
:20:GR16100710000553
:21:GR16100710000003
:32A:170515EUR299,
:52A:ABNANL2A
:53B://NL34ABNA0628013353
:58A:ANZBAU3MXXX
:72:/PHONE/This is PHONE code seqA
/TELE/Telecommunication
/INS/TESTCC32XXX
-}
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