Banking at a Glance
Bank Swift Messages used by Real Buyers and Sellers
The MT799 is a free format SWIFT message type in which a banking institution confirms that funds are in place to cover a potential trade.
This can, on occasion, be used as an irrevocable undertaking, depending on the language used in the MT799, but is not a promise to pay or any form of bank guarantee in its standard format. The function of the MT799 is simply to assure the seller that the buyer does have the necessary funds to complete the trade.
If the subject line of the MT799 is marked as RWA message it can never block any funds of the Buyer. Please talk to bankers only which are trained by Swift and experienced. It may happen that you normal banker has no clue of what Swifts means in detail and what it's effect is. It is the difference between your car sales man and the specialist for the electronical systems in your car.
What does the SWIFT MT799 option provide?
An account with the SWIFT MT799 capability allows bank-
The MT799 is usually issued before a contract is signed and before a letter of credit or bank guarantee is issued. (Here we as Kalily differ – we sign a contract with the Buyer before we start the banking process) After the MT799 has been received by the seller’s bank, it is then normally the responsibility of the seller’s bank to confirm to Buyer’s bank with full bank responsibility that the Seller owns the product and is capable of the delivery as written in the referring SPA, at which point the trade continues towards commencement.
After Swifts have been confirmed by both banks and they are in direct communication (secured banking network) Buyer’s bank issues the MT760 SBLC/BG valid for one year and one day to guarantee the seller that he gets paid in case of default.
The actual payment method after delivery used by us is MT103 (wire transfer), or in case of default the SBLC to pay the goods.
What does an MT799 look like?
An MT799 is an automated message sent electronically from one bank to another, so you won’t really ’see’ an MT799 at all. The paperwork associated with an MT799 will vary from bank to bank, though most banks follow a similar format. We will send you our verbiage which is common standard (ICC) and only varies a bit from bank to bank.