What Is A MT103 & MT103/23
MT103/23
“Field 23 – Instruction Code” is where the remitting bank (at the request of the remitter) puts in a simple code instructing the beneficiary’s bank how to effect the payment, such as “Credit Account under Advice”, “Telephone beneficiary on receipt”, “Pay against passport” and such like.
MT103 is a straight-through processing mechanism requiring very little manual intervention, except in simple tasks like above.
You cannot send an MT103 with a condition that the beneficiary’s bank must receive, say certain documents, from the beneficiary before crediting his account.
Such a request will be rejected by the remitting bank, and if sent in Field 23 (which allows for only a few standard codes) will be rejected and ignored by the beneficiary’s bank who will credit the beneficiary’s account anyway.
Transactions that involve the exchange of money for documents are documentary collections (D/A, D/P etc.) and are processed in other ways. Banks are banks, they are not lawyers or trust companies.
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MT-103 FORMAT FIELD23
This is an extract from the official SWIFT User Handbook. The field specifications for Field 23 (23B: Bank Operation Code / 23E: Instruction Code) are shown hereunder:
Field 23B: Bank Operation Code
FORMAT
Option B 4!c (Type)
PRESENCE
Mandatory
DEFINITION
This field identifies the type of operation.
CODES
One of the following codes must be used (Error code(s): T36):
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.
USAGE RULES
The code CRTS should not be used on the FIN network.
EXAMPLE
:23B:SPAY
Field 23E: Instruction Code
FORMAT
Option E 4!c[/30x] (Instruction)(Additional Information)
PRESENCE
Conditional (see rule C3)
DEFINITION
This field specifies an instruction.
CODES
Instruction must contain one of the following codes (Error code(s): T47):
SDVA Payment must be executed with same day value to the beneficiary.
INTC The payment is an intra-company payment, that is, 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, for example, foreign exchange deal, securities transaction.
HOLD Beneficiary customer/claimant will call; pay upon identification.
CHQB Pay beneficiary customer only by cheque. The optional account number line in field 59 must not be used.
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.
NETWORK VALIDATED RULES
Additional Information is only allowed when Instruction Code consists of one of the following codes: PHON, PHOB, PHOI, TELE, TELB, TELI, HOLD or REPA (Error code(s): D97).
If this field is repeated, the codes must appear in the following order (Error code(s): D98):
SDVA
INTC
REPA
CORT
HOLD
CHQB
PHOB
TELB
PHON
TELE
PHOI
TELI
When this field is used more than once, the following combinations are not allowed (Error code(s): D67):
SDVA with HOLD
SDVA with CHQB
INTC with HOLD
INTC with CHQB
REPA with HOLD
REPA with CHQB
REPA with CORT
CORT with HOLD
CORT with CHQB
HOLD with CHQB
PHOB with TELB
PHON with TELE
PHOI with TELI
If this field is repeated, the same code word must not be present more than once (Error code(s): E46).
USAGE RULES
This field may be repeated to give several coded instructions to one or more parties.
Code REPA indicates that the payment is the result of an initiation performed via an e-payments product between the customers. This code is intended for the beneficiary’s bank who should act according to the specifications of the e-payments product.
EXAMPLE
:23E:CHQB
:23E:TELI/3226553478
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