SWIFT HistorySWIFT is the acronym of Society for Worldwide Interbank Financial Telecommunication (SWIFT) SWIFT History
* Increase in International trade and commerce after World War-II
* Efficient Banking System for payment mechanism with Security, Reliability and Confidentiality was needed.
* Computer and Telecommunication technology came to rescue.
* SWIFT is a Co-operative organization
* SWIFT is the industry-owned co-operative
* SWIFT established in 1973
* SWIFT head quarters at Brussels, Belgium
* SWIFT is common language for international financial transactions
* SWIFT is Secure, Standardized messaging services
* SWIFT Provides interface software
SWIFT MESSAGES BLOCKS
Contains control information
Addressee, processing, priority and security.
2 Text :
Contains the substance of the message.
format and structure varies according to the MT
For control purposes, CHK Trailer, PDE Trailer
1 Customer payments and cheques
2 Financial institution transfers
3 Treasury Markets-FX, Money Markets and Derivatives
4 Collection and cash letters
5 Securities Markets
6 Treasury Market- Precious Metals/ Syndication’s
7 Documentary Credits and Guarantees
8 Travelers Cheques
9 Cash Managements and Customers Status
The Message MT 734
This message is sent by the issuing bank to the bank from which it has received documents related to a documentary credit.
It may also be sent by the bank nominated to pay/accept/negotiate/incur a deferred payment undertaking to the bank from which it has received documents.
It is used to advise the Receiver that the Sender considers the documents, as they appear on their face, not to be in accordance with the terms and conditions of the credit and that, consequently, it refuses them for the discrepancies stated. The Sender also states that it is holding the documents at the disposal of, or returning them to the Receiver.
SWIFT Message MT 740
This message is sent by the issuing bank to the reimbursing bank.
It is used to request the Receiver to honour claims for reimbursement of payment(s) or negotiation(s) under a documentary credit.
The MT 740 authorises the reimbursing bank to debit the account of the Sender, or one of the Sender’s branches if so indicated, for reimbursements effected in accordance with the instructions in the MT 740.
SWIFT Message MT 754 Advice of Payment/Acceptance/Negotiation
This message is sent by the paying, accepting or negotiating bank, or the bank incurring a deferred payment undertaking,to the issuing bank. It may also be sent by the bank to which documents have been presented to a bank that has been nominated to pay/accept.
It is used to advise the Receiver that documents were presented in accordance with the credit terms and are being forwarded as instructed.
SWIFT Message MT 756 Advice of Reimbursement or Payment
This message is sent by the issuing bank to the bank from which it has received documents or by the reimbursing bank to the bank from which it has received a reimbursement claim
It is used to advise the Receiver about reimbursement or payment, to that bank, for a drawing under a documentary credit for which no specific reimbursement instructions or payment provisions were provided.