What is swift MT799 (swift messaging types)?
While doing a trade through bank warranties and LC you might have heard about this type of messaging format.
MT799 is a message format type in swift network system which allows the banks to communicate between each other freely and securely.
It is worth mentioning that MT799 is not a mechanism for transferring funds, paying or a commitment for doing a service, it is rather a kind of confirmation of funds or proof of deposit.
As the MT799 is a free of charge message format, the banks can freely and easily send different kinds of messages before transferring warrantied amount or sending LC’s.
Different kinds of MT799
MT799 is used by banks for the following occasions:
- Proof of Funds (POF)
- Ready willing and able letters (RWA)
- Pre consulting letters
How to use MT799
A bank which is qualified to issue MT799 is allowed to issue electronic confirmation letters in order to confirm the proof of funds and these letters should be conformed to 7th category of swift messages’ rules which are meant for treasury and trade union markets.
Traders mostly believe that to show a proof of fund they need to send a MT760 SWIFT, but in fact what they need is just a MT799.
Most of the time, MT799 is issued before signing a contract or before issuing a LC or bank warranty.
When MT799 is received by the seller’s bank, the seller also sends a confirmation letter for the proof of product (POP) to show that it can performs its duties based on the contract.
How to send the message
Only a bank connected to swift network is able to issue a MT799 message. You can act either through your bank or your financial agent which uses other banks for its services.
If you don’t have collateral, you can use financial agents’ services, as they can give you MT799 without collateral.
What information is needed to send the message?
The following are most of the information which is needed to send a swift MT799:
- Name and other information of the sender
- The value of document
- Bank’s recommendation letter
- Name and contact information of beneficiary
- Validity of document
- Copy of invoice/pro forma invoice of the contract
- Number of credit
- Value of LC
- Draft of LC
- The last date of transportation