Purpose and Usage
SWIFT MT799 is a free format message type used within the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system. Its primary purpose is to provide proof of funds or proof of deposits, facilitating communication between banks. Unlike other SWIFT message types, the MT799 is not utilized for transferring funds.
Key Facts
- Purpose: The primary purpose of an MT799 is to show proof of funds or proof of deposits.
- Message Type: The MT799 is a free format message that can be used for various reasons, such as showing proof of funds or initiating communication between banks.
- Fund Transfer: The MT799 is not used for transferring funds. It is primarily a communication tool between banks.
- Usage: Banks often use the MT799 as a preliminary notification tool before issuing a letter of credit or bank guarantee.
- Authentication: The MT799 is an unauthenticated message, meaning it does not require detailed information or authentication.
- SWIFT Category: The MT799 is part of Category 7, which is specifically for documentary credits and guarantees.
- Prevalence: The MT799 and MT760 are the most widely used SWIFT messaging types, especially for larger transactions and bank-to-bank correspondence.
Message Type and Authentication
The MT799 is a versatile message type that can be employed for various purposes, including showing proof of funds and initiating communication between banks. It is an unauthenticated message, meaning it does not require detailed information or authentication, unlike the MT760 message type.
Fund Transfer and Usage
The MT799 is not designed for transferring funds. Instead, it serves as a communication tool between banks, often used as a preliminary notification tool before issuing a letter of credit or bank guarantee.
SWIFT Category and Prevalence
The MT799 falls under Category 7 of SWIFT messaging types, specifically for documentary credits and guarantees. It is widely used in international trade, particularly for larger transactions and bank-to-bank correspondence. The MT799 and MT760 are the most prevalent SWIFT messaging types in this category.
Sources
- SWIFT MT799: A Guide for Understanding and Using
- The Difference Between SWIFT Messaging Types: MT799 and MT760
- MT799 – What is SWIFT MT799?
FAQs
What is a SWIFT MT799?
A SWIFT MT799 is a free format message used within the SWIFT system to provide proof of funds or proof of deposits, facilitating communication between banks.
What is the purpose of a SWIFT MT799?
The primary purpose of a SWIFT MT799 is to show proof of funds or proof of deposits.
Can a SWIFT MT799 be used to transfer funds?
No, a SWIFT MT799 cannot be used to transfer funds. It is primarily a communication tool between banks.
What is the difference between a SWIFT MT799 and a SWIFT MT760?
A SWIFT MT799 is an unauthenticated message used for showing proof of funds or initiating communication between banks, while a SWIFT MT760 is an authenticated message used for requesting or issuing guarantees or letters of credit.
When is a SWIFT MT799 typically used?
A SWIFT MT799 is often used as a preliminary notification tool before issuing a letter of credit or bank guarantee.
What is the SWIFT category for MT799 messages?
The SWIFT MT799 message falls under Category 7, which is specifically for documentary credits and guarantees.
How prevalent is the use of SWIFT MT799 messages?
The MT799 and MT760 are the most widely used SWIFT messaging types, especially for larger transactions and bank-to-bank correspondence.