MT740 Reimbursement — Seamless Payouts for Confirmed Letters of Credit
We structure confirmed LC flows where the issuing bank authorizes a reimbursing bank via MT740, enabling the confirming bank to be paid promptly after compliant presentation.
UCP 600 • ICC
KYC/AML & Sanctions Screening
100+ Countries • 200+ Institutions
24–48h Intake
How It Works
- Issuing Bank issues LC (MT700).
- Confirming Bank adds confirmation (via MT710 or directly).
- Issuing Bank sends MT740 to Reimbursing Bank.
- Confirming Bank presents docs & requests reimbursement.
- Reimbursing Bank pays per MT740 authorization.
Clear SWIFT choreography → faster, traceable settlements.
🎯 Why Use MT740?
| Feature | Benefit |
|---|---|
| Reimbursing bank authorized | Confirming bank’s payout is pre-cleared |
| SWIFT standard | Auditability & end-to-end traceability |
| Confirmed LC support | Fits MT700/MT710 confirmations |
| Faster turnaround | Clear reimbursement instruction |
| Complex chains | Ideal where 3+ banks are involved |
📂 Documents Required for MT740 Execution
- Final LC (MT700/MT710) with confirmation & reimbursement clause
- Reimbursement agreement between issuing & reimbursing banks
- SWIFT-enabled credentials for all banks involved
- Seller’s documents: commercial invoice, B/L/AWB, inspection report, etc.
- Bank compliance files: KYC/AML, sanctions screening as required
We verify field consistency across all messages (MT700/710/740/747).
🏦 Trusted Banks That Accept/Support MT740 Reimbursements (Selection)
Indicative list (20). Availability depends on corridor, appetite, and inter-bank arrangements.
| Reimbursing / Paying Bank | SWIFT/BIC | Strengths / Notes | Typical Settle Time | Typical LC Range |
|---|---|---|---|---|
| JPMorgan Chase, New York | CHASUS33 | Global reach, fast SWIFT matching | 1–3 days | $0.5–100M |
| Commerzbank, Frankfurt | COBADEFF | Strong EU reimbursement | 2–4 days | $0.5–80M |
| HSBC, London | MIDLGB22 | Asia-EU corridor specialist | 1–2 days | $1–200M |
| Standard Chartered, Dubai | SCBLAEAD | MEA hub | 2–3 days | $0.25–50M |
| State Bank of India | SBININBB | Asia local reimbursements | 2–5 days | $0.25–20M |
| Citi, New York | CITIUS33 | Global payouts, multi-ccy | 1–3 days | $1–200M |
| Bank of New York Mellon | IRVTUS3N | US dollar clearing strength | 1–3 days | $1–150M |
| Deutsche Bank, Frankfurt | DEUTDEFF | Well-established reimbursement desks | 2–4 days | $1–150M |
| Barclays, London | BARCGB22 | GBP/EUR corridors | 1–3 days | $0.5–75M |
| BNP Paribas, Paris | BNPAFRPP | EU anchor | 2–4 days | $1–150M |
| Crédit Agricole, Paris | AGRIFRPP | Structured trade support | 2–4 days | $0.5–80M |
| Bank of China, Hong Kong | BKCHHKHHXXX | APAC EPC flows | 2–4 days | $1–150M |
| China Construction Bank, Hong Kong | CCBQHKAX | Large-ticket capacity | 2–4 days | $1–200M |
| DBS Bank, Hong Kong | DHBKHKHH | APAC execution | 2–3 days | $0.5–100M |
| Standard Chartered, Hong Kong | SCBLHKHHXXX | Global network | 2–3 days | $0.5–100M |
| UOB, Singapore | UOVBSGSG | SEA corridors | 2–3 days | $0.5–80M |
| First Abu Dhabi Bank | NBADAEAA | GCC project flows | 2–4 days | $1–150M |
| Mashreq Bank, UAE | BOMLAEAD | Agile reimbursements | 2–3 days | $0.25–50M |
| Société Générale, Paris | SOGEFRPP | EU project finance | 2–4 days | $0.5–80M |
| UniCredit, Milan | UNCRITMM | EUR-based trade flows | 2–4 days | $0.5–80M |
Figures are indicative. Final eligibility depends on inter-bank agreements, corridor, sanctions, and compliance.
🔑 Key MT740 Fields We Validate
| Field | Purpose |
|---|---|
| 20 | Sender’s reference |
| 21 | Related reference (LC) |
| 32B | Currency/amount authorized |
| 57a | Account with bank |
| 58a | Beneficiary bank (confirming) |
| 72 | Sender to receiver information |
📌 Quick Guides by Role
- Issuing Banks: Align LC text & reimbursement terms; pre-agree reimbursing bank.
- Confirming Banks: Ensure LC & MT740 parity; prepare clean presentation workflow.
- Reimbursing Banks: Confirm arrangements; define settlement windows & cut-offs.
- Exporters: Coordinate docs for zero discrepancies; confirm advising bank procedures.
- Importers: Ensure contractual terms match LC and shipment realities.
❓ Frequently Asked Questions (15)
1) Do we always need a reimbursing bank?
No, but MT740 is recommended when payout is delegated to a third bank for speed and clarity.
2) Is MT740 only for confirmed LCs?
It’s commonly used in confirmed structures but can be used where reimbursement is delegated.
3) Who selects the reimbursing bank?
Typically the issuing bank; it should be referenced in the LC and reimbursement agreement.
4) How fast is reimbursement?
Often 1–4 business days after compliant presentation and claim.
5) What causes reimbursement delays?
Message mismatches (MT700/710 vs 740), cut-off times, incomplete docs, or compliance holds.
6) Can the amounts be partial?
Yes, provided the LC allows partial drawings and amounts are reconciled in MT740.
7) Which rules apply?
UCP 600 for DCs; bilateral reimbursement agreements govern payout mechanics.
8) Do you support multi-currency?
Yes; currency must align across messages and reimbursement scope.
9) What’s in an MT747?
Amendments to the reimbursement terms authorized by the issuing bank.
10) Can you add confirmation after issuance?
Often yes, via MT710 or bank advice, subject to appetite and LC wording.
11) Do you help draft LC text?
Yes—bank-ready drafts to align LC, confirmation, and reimbursement fields.
12) How do sanctions affect reimbursement?
We screen all parties, banks, vessels, and routes; hits can halt payout.
13) What minimum deal sizes do you handle?
Generally from ~$250k; larger for some corridors/banks.
14) Can you coordinate discounting?
Yes—subject to confirmer and insurer appetite.
15) Do you sign NDAs?
Yes, mutual NDAs and secure data rooms with audit logs.
💬 Client Reviews (15)
A. Karim — GCC EPC★★★★★
MT740 flow paid our confirmer in 48h. Clean execution.
L. Novak — EU Agri★★★★★
They harmonized MT700/710/740 perfectly. No discrepancies.
H. Wang — APAC OEM★★★★☆
Cut-off timing explained upfront; funds arrived next day.
P. Silva — LatAm Ports★★★★★
Reimbursing bank set early; settlement was predictable.
E. Mensah — West Africa★★★★★
Great coordination with confirming bank and insurer.
S. Ivanov — Rail★★★★★
Amendment via MT747 handled same day. Impressive.
N. O’Connor — Pharma★★★★★
Compliance was tight; zero surprises at payout.
R. Patel — Energy★★★★☆
One extra KYC loop, still settled within 72h.
K. Yamada — Electronics★★★★★
Field mapping checklist saved a week.
M. Diallo — Mining★★★★★
Discounting arranged after confirmation—smooth cash flow.
C. Rossi — Construction★★★★★
Great multi-bank orchestration and reporting.
Z. Khaled — Logistics★★★★★
They aligned LC and shipment realities perfectly.
D. Nguyen — Textiles★★★★★
Transparent fees; settlement matched the SLA.
G. Brown — Timber★★★★☆
Holiday cut-off noted in advance—no surprises.
I. Popescu — Metals★★★★★
Best LC drafting support we’ve had.
🛠️ Our Structuring Process
- Review MT700/710 LC confirmation terms
- Coordinate with issuing & reimbursing banks
- Draft/validate MT740 reimbursement format
- Ensure field consistency across messages
- Monitor reimbursement claims & settlement
🔍 MT740 vs Other SWIFT LC Messages
| Message | Purpose | Used By | Binding? |
|---|---|---|---|
| MT700 | Issue main LC | Issuing bank | ✅ Yes |
| MT710 | Advise/Confirm LC | Advising/Confirming bank | ✅ Yes |
| MT740 | Authorize reimbursement | Issuing → Reimbursing | ✅ Yes |
| MT747 | Amend reimbursement terms | Issuing bank | ✅ Yes |
📩 Start an MT740-Enabled LC
We’ll route your file to the right regional desk and respond within 24–48 hours.
Global Desks
- Americas: Montréal • New York • Miami • São Paulo
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- Africa: Casablanca • Lagos • Nairobi • Johannesburg
- Asia: Singapore • Hong Kong • Kuala Lumpur • Mumbai
UCP 600
KYC • AML • Sanctions
Institutional & Private Capital
Disclaimer: Content is informational and non-binding. All engagements are subject to full KYC/AML, sanctions checks, and final institutional approvals.