Message MT 103: Single Customer Credit Transfer.
Focus on preparing message to be received by recipient automatically
MT103 is the format banks use when they effect what is known to a layman as a wire transfer, cable transfer, telegraphic transfer or Swift transfer.
Procedure
1) Suppose A has an account with Bank X and he needs to transfer money to B whose account is with Bank Y in another country.
2) A goes to Bank X, fills out a remittance form with all particulars.
3) Bank X debits A’s account and sends a Swift MT103 to Bank Y.
4) Bank Y debits Bank X and credits B’s account and advises B that it has received a remittance.
Message MT 760: Guarantee issuance
SWIFT MT 760 is a bank-responsible guarantee issued by a sender(buyer) bank, upon instructions of its account holder, in favour of a particular transaction or party.
The sender bank holds the client's funds under blocking as collateral for the SWIFT.
It is properly described as a non-negotiable bank debt instrument.
PROCEDURE
A MT760 is formatted secured wire transmission for Bank Guarantees only.
1) The transfer can only take place between a true buyer and true seller (i.e owner- no brokers) or someone who has signatory control over the account.
2) A contract is signed between the buyer and the seller
3) The buyer must speak to his bank officer and request that a transfer be made.
4) The bank officer does his DD and determines that everything is kosher.
5)The buyer's bank determines if a key exchange exists between the two banks, if not another route must be chosen.
6) The buyer's bank then issues a Swift MT-760 to the seller's bank
7) Immediately upon receipt of the Swift, the seller's bank returns a confirming swift that the originating swift was received.
8) The buyer's bank then do its own DD on the swift and transfers the instrument into the buyer's account.
9) Upon the transfer and depending upon the contract provisions, the buyer issues payment to the seller