Structure and Content of MT799 Pre-Advice Message

Introduction

The MT799 Pre-Advice is a non-binding SWIFT message widely used in trade finance to notify counterparties of intended funding or transaction readiness.

Understanding its structure, key fields, and best practices is essential for banks, beneficiaries, and intermediaries to ensure clear communication and prevent misunderstandings.

Keywords: SWIFT MT799 format, field 20 (transaction reference), field 79 (narrative), confirmation of funds, beneficiary details, currency and amount.

I. Purpose of MT799 Pre-Advice

Pre-Transaction Assurance: MT799 provides a preliminary notification that funds or a financial instrument, such as an SBLC, is intended to be issued.
Non-Binding Notification: It does not constitute an irrevocable guarantee or commitment to pay.
Interbank Communication: Facilitates smooth coordination between issuing banks, advising banks, and beneficiaries.

Example: A bank sends an MT799 to notify a supplier’s bank that a standby letter of credit will be issued shortly.

Keywords: pre-transaction assurance, non-binding notification, interbank communication.

II. MT799 Message Structure

SWIFT Format: MT799 is a free-format SWIFT message, allowing the sending bank to include detailed transaction information.
Field 20 — Transaction Reference Number:
- Unique identifier for the MT799 message.
- Helps the beneficiary and banks track the message in correspondence.
Field 79 — Narrative/Message Text:
- Contains the main content of the pre-advice, including:
  - Confirmation of funds
  - Beneficiary name and details
  - Currency and amount
  - Additional instructions or comments

Example:

Field 20: “REF20251015”
Field 79: “We hereby advise that funds in the amount of USD 5,000,000 will be available for issuance of SBLC in favor of [Beneficiary Name].”

Keywords: SWIFT MT799 format, field 20, field 79, beneficiary details.

III. Key Content Elements

Confirmation of Funds: Indicates that the issuing bank has checked fund availability or intends to make them available.
Beneficiary Details: Name, address, and account information to ensure accurate delivery.
Currency and Amount: Specifies the amount to be guaranteed or funded.
Additional Instructions: Optional notes for processing, intermediaries, or advising banks.

Best Practice: Maintain clarity and conciseness in the narrative to avoid misinterpretation.

Keywords: confirmation of funds, currency and amount, message customization.

IV. Related Terms and Usage

Free-Format SWIFT Message: MT799 allows flexibility in wording while adhering to SWIFT standards.
Pre-Transaction Assurance: Provides confidence to the beneficiary that a financial instrument or transaction will follow.
Message Customization: Tailor content for specific transactions or banking relationships, while keeping essential information intact.

Example: A bank may include internal reference codes or transaction notes for the beneficiary while keeping the message professional and compliant.

Keywords: free-format SWIFT message, message customization, pre-transaction assurance.

V. Conclusion

The MT799 Pre-Advice Message is a critical tool in trade finance:

Provides preliminary notification of funds or intended instruments.
Uses Field 20 for transaction reference and Field 79 for narrative.
Includes confirmation of funds, beneficiary details, and currency/amount.
Non-binding but ensures clear interbank communication.

Properly structured MT799 messages reduce confusion, streamline preparation for irrevocable instruments, and enhance trust among banks and beneficiaries.

FAQ: MT799 Pre-Advice Message

Q1 — Is MT799 legally binding?
No, MT799 is non-binding and only serves as a pre-advice notification.

Q2 — What information is included in Field 20?
Field 20 contains the unique transaction reference number for tracking purposes.

Q3 — What information is included in Field 79?
Field 79 holds the main narrative, including confirmation of funds, beneficiary details, and currency/amount.

Q4 — Can MT799 be customized?
Yes, MT799 is a free-format SWIFT message and can include transaction-specific instructions.

Q5 — Who uses MT799 messages?
Issuing banks, advising banks, and beneficiaries use MT799 for pre-transaction communication.

Q6 — Does MT799 guarantee payment?
No, payment or funding is only guaranteed once an irrevocable instrument like MT760 is issued.

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