SWIFT MESSAGES
SWIFT is an organization which issues specifications for messages used totransfer funds, issue bank guarantees and so on. There are nine types of messages where MT1** stands for cash settlement operations (like MT103), MT5** stands for security operations or MT7** stands for guarantee messages and so on. In our case MT103 defines the message type exclusively used for cash transfersfrom one client account to another bank client account. Each message has its strict hierarchy and fixed structured fields which cannot be altered or changed.
When some brokers ask you to “confirm fund” or make a “conditional” payment via SWIFT MT103/23 – you should always read:“TRANSFER YOUR CASH TO MY ACCOUNT”. Despite any arguments, it is very clear to any banker, when you ask him to send a “conditional” payment via MT103, you banker rejects it as there is no a specially defined field in the MT103 structure where to place conditions of transfer.
There are a lot of BS specimens of SWIFT MT103/23 around internet, but no one care to check with SWIFT regulations how to fit such text into structured SWIFT format. Now you could get it to educate yourselves.
SPECIMEN OF SWIFT MT103
These are two fields below may be referred as /23. However, there is no indication of any conditions or delays of fund transfer at all. Both fields could only use four letter pre-defined codes. You cannot place it any conditional texts or promises.
:23B: Bank Operation Code. This is only four-letter code with a pre-defined format as follows:
CRED - This message contains a credit transfer where there is no SWIFT Service Level involved.
CRTS - This message contains a credit transfer for test purposes.
SPAY - This message contains a credit transfer to be processed according to the SWIFTPay Service Level.
SPRI - This message contains a credit transfer to be processed according to the Priority Service Level.
SSTD - This message contains a credit transfer to be processed according to the Standard Service Level.
:23E:(optional) Instruction Code (Conditional). This is only four-letter code with a pre-defined format.
SDVA - Payment must be executed with same day value to the beneficiary.
INTC - The payment is an intra-company payment, ie, a payment between two companies belonging to the same group.
REPA - Payment has a related e-Payments reference.
CORT - Payment is made in settlement of a trade, eg, foreign exchange deal, securities transaction.
HOLD - Beneficiary customer/claimant will call; pay upon identification.
CHQB - Pay beneficiary customer only by cheque.
PHOB - Please advise/contact beneficiary/claimant by phone.
TELB - Please advise/contact beneficiary/claimant by the most efficient means of telecommunication.
PHON - Please advise account with institution by phone.
TELE - Please advise account with institution by the most efficient means of telecommunication.
PHOI - Please advise the intermediary institution by phone.
TELI Please advise the intermediary institution by the most efficient means of telecommunication.
Other fileds of SWIFT103/23
:20: Sender Reference Number. This is a sending bank unique message code. No client has powers to place here its own code or reference as it has to be assigned by the sending bank according to its database.
:26T: Transaction Type Code – this could be a short classification of the transaction type. For example, you could place here N43 (Sale and purchase of money market instruments)
:32A: Value Date/Currency/Interbank Settled Amount. You could place here only the date and the amount like this: YYMMDDEUR000000,00
:50F: Ordering Customer. Account of the Sender and its name, address
:56A: Intermediary Institution could be variation of the correspondent bank accounts and so on
:59A: Beneficiary Customer. Account of the Receiver and its name, address
:70:(optional) Remittance Information (accepted only 4 lines of 35 letters each). It also could be used with codes such as
INV - Invoice (followed by the date, reference and details of the invoice)
RFB - Reference for the beneficiary customer
ROC - Ordering customer’s reference.
Or any narrative information about the purpose of payment
:71A: Details of Charges defines who will pay for funds transfer, like SHA - Transaction charges on the Sender’s side are to be borne by the ordering customer, transaction charges on the Receiver’s side are to be borne by the beneficiary customer.
:72:(optional) Sender to Receiver Information (accepted only 6 lines of 35 letters each). This is a narrative field where the sender could send “hello” to a receiver. But in no way this field could be used to put some condition of payment for the receiving bank. When you put here “Please, don’t give my money to this account until he delivers me a bank guarantee”, the banker will laugh all day , then deduct your money from your account and send it to the account of the receiver. There is no way to get your money back from the receiver in case of default after 24 hours of paymentunless you obtain a court decision. Even then your money could be cashed out in the nearest branch and crooks with stolen identity may disappear forever.
In most (all) cases messages MT103 served at the receiving bank automatically and some optional fields may be omitted.
Wish you happy banking.