Understanding the DNA of trade finance messages — field by field.

✅ Introduction

In the world of trade finance, the SWIFT network serves as the secure language of global banking.
Every Letter of Credit (LC), Bank Guarantee (BG), and Standby Letter of Credit (SBLC) travels across this network as a structured MT message (Message Type).

For non-bank professionals — exporters, importers, brokers, or project managers — understanding how to read and interpret these messages is critical to avoid costly delays, fraud, or compliance issues.

Each SWIFT message is a digital contract — and each field within it holds legal and financial meaning.

This guide breaks down the three most important MT formats used in trade and instrument transactions:
MT700, MT799, and MT760.

✅ 1. Overview: The SWIFT MT Message Family

Each one follows a field structure, where information is coded using standardized numbers (e.g., :20:, :32B:, :59:).
These fields form a legally enforceable message between banks, under ICC rules such as UCP 600, ISP98, or URDG 758.

✅ 2. MT700 – Documentary Credit (Letter of Credit)

The MT700 is the foundation of trade — it’s the formal issuance of a Letter of Credit.
It specifies payment conditions, shipment details, and the parties involved.

📘 Typical Field Structure (Simplified)

💡 Key Takeaway:

The MT700 governs trade payment — it’s an operational credit line between two banks, protecting both buyer and seller.

✅ 3. MT799 – Free-Format Message (Bank-to-Bank Communication)

The MT799 is a non-binding, pre-advisory or communication tool between banks.
It does not carry value — but it prepares, confirms, or verifies a future instrument or payment.

📘 Typical Uses

• Readiness confirmation (RWA – Ready, Willing, and Able)

• Pre-advice before MT760 or MT700 issuance

• Compliance or verification note

• Informal message for clarification or confirmation

📘 Simplified Field Structure

⚙️ Operational Logic

• Sent via SWIFT between issuing and receiving banks

• Serves as communication of intent, not an obligation

• Provides legal transparency without activating funds

MT799 = Talk. MT760 = Action.

✅ 4. MT760 – Demand Guarantee / Standby Letter of Credit

The MT760 is the commitment message — it legally binds the issuing bank to honor a payment if the applicant defaults.

It’s the format used for:

• SBLC (Standby Letters of Credit)

• Bank Guarantees (BG)

• Performance Bonds or Payment Guarantees

📘 Simplified Field Structure

Once authenticated, the MT760 becomes a binding financial instrument — enforceable in court under ICC standards.

✅ 5. Interrelation of the Three Messages

These messages often follow one another in major trade deals:

MT799 (intent) → MT700 (payment) → MT760 (guarantee/standby)

Understanding this sequence helps non-bank professionals navigate deal verification and compliance without confusion.

✅ 6. How to Verify a SWIFT Message (Non-Bank Checklist)

1️⃣ Ask for SWIFT copy with BIC codes
→ Example: HSBCGB2L, DEUTDEFF, CITIUS33

2️⃣ Confirm through your bank’s compliance desk
→ Never rely on email or PDF screenshots.

3️⃣ Check message reference numbers (:20:, :21:)
→ Must match across all related messages.

4️⃣ Ensure message type consistency
→ MT700 ≠ MT760 ≠ MT799 — each has distinct formatting.

5️⃣ Validate issuing bank’s SWIFT registration
→ Use SWIFT.com or authenticated bank channel.

6️⃣ Confirm ICC rule reference (UCP 600 / ISP98 / URDG 758)
→ Absence of rule = non-standard, high-risk transaction.

✅ 7. Common Errors and Fraud Indicators

⚠️ Email-only “MT” copies – fake or simulated
⚠️ Inconsistent reference numbers – document manipulation
⚠️ Non-existent BIC codes – fraudulent institutions
⚠️ Unrated or private issuers – not SWIFT members
⚠️ Overuse of generic MT799 “proofs” – red flag for scams

Always verify SWIFT authenticity through bank-to-bank confirmation — never through intermediaries.

✅ 8. Practical Applications for Non-Bank Users

For exporters, importers, and financiers, understanding which message to expect — and in what sequence — avoids both delays and compliance failure.

✅ 9. Compliance and Legal Framework

All SWIFT MT messages are governed by:

• ICC Rules (UCP 600, ISP98, URDG 758)

• Basel III/IV Capital Regulations

• KYC / AML Directives (FATF, EU, FinCEN)

• SWIFT Network Security Standards

This ensures all transactions are traceable, secure, and recognized globally in disputes or audits.

✅ 10. Conclusion

For non-bank professionals, decoding SWIFT messages transforms confusion into control.
Understanding the meaning of each field in MT700, MT799, and MT760 empowers you to:

✅ Verify legitimacy
✅ Prevent fraud
✅ Communicate effectively with banks
✅ Secure and accelerate funding

In trade finance, knowledge of SWIFT structure is not just technical — it’s strategic power.
The message fields are the grammar of trust.