⚜️ SWIFT (Society for Worldwide Interbank Financial Telecommunication) ⚜️

SWIFT (Society for Worldwide Interbank Financial Telecommunication)는 글로벌 금융 기관 간에 안전하고 효율적인 금융 거래를 위해 사용되는 통신 네트워크 및 시스템입니다. SWIFT 시스템은 주로 은행과 금융 기관이 금융 거래 정보와 메시지를 안전하게 교환하는 데 사용됩니다.

SWIFT 시스템의 주요 기능과 특징은 다음과 같습니다:

1. 글로벌 네트워크: SWIFT는 전 세계의 수천 개 금융 기관과 은행을 연결하는 안전하고 신속한 통신 네트워크를 제공합니다. 이를 통해 금융 거래가 전 세계로 신속하게 이루어질 수 있습니다.
2. 안전성과 보안성: SWIFT는 강력한 보안 기술과 프로토콜을 사용하여 금융 거래의 기밀성과 무결성을 보장합니다. 이로 인해 부정한 액세스와 데이터 변조를 방지할 수 있습니다.
3. 표준화된 메시지 포맷: SWIFT는 금융 거래에 대한 표준화된 메시지 포맷을 제공하여 다양한 금융 기관 간의 원활한 상호 운용성을 보장합니다.
4. 국제송금: SWIFT 시스템은 국제 송금에 자주 사용됩니다. 한 국가에서 다른 국가로 자금을 이체하거나, 글로벌 비즈니스 및 무역 거래에 사용됩니다.
5. 대용량 거래 지원: SWIFT는 대용량 거래에도 능숙하게 대응할 수 있도록 설계되어 있으며, 거래량이 많은 금융 기관에서도 안정적으로 작동합니다.

SWIFT 코드 또는 SWIFT BIC (Bank Identifier Code)는 각 은행이나 금융 기관을 고유하게 식별하는 코드이며, 국제 송금 시에 이 코드가 사용됩니다. SWIFT 코드는 금융 기관을 신속하게 찾아내는 데 도움이 되며, 국제 금융 거래의 효율성을 높이는 데 기여합니다.

 

 

⚜️  아래는 swift system에 의거한 500M의 거래에 참조해야 하는 경우를 열거한 내용이다.

 

DIRECTOR OF SWIFT™ and its terminology

 

SWIFT™ MT SWIFT™ messages, developed by SWIFT™ Standards Laboratories Private Limited, consists of five blocks of data including three headers, message content, and a trailer. Message types are crucial to identifying content. All SWIFT™ messages include the literal "MT" (Message Type). This is followed by a 3-digit number that denotes the message category, group and type. Consider the following example, which is an order to buy or sell via a third party.

 

Example: MT304

The first digit (3) represents the category. A category denotes messages that relate to particular financial instruments or services such as Precious Metals (6), Treasury (3), or Travelers Cheques (8). The category denoted by 3 is Treasury Markets.

 

The The second digit (0) represents a group of related parts in a transaction life cycle. The group indicated by 0 is a Financial Institution Transfer.

 

The third digit (94) is the type that denotes the specific message. There are several hundred messages types across the categories. The type represented by 4 is a notification.

 

Overview of SWIFT™ MT Categories: Message Description

 

-MT0xx System Messages

-MT1xx Customer Payments and Cheques

-MT2xx Financial Institution Transfers

-MT3xx Treasury Markets

-MT4xx Collection and Cash Letters

-MT5xx Securities Markets

-MT6xx Treasury Markets-Metals and Syndications

-MT7xx Documentary Credits and Guarantees

-MT8xx Travelers Cheques

-MT9xx Cash Management and Customer Status

 

Some of the common MTs that are used by our trading group and clients are: 

 

MT542

-This message is used to instruct the delivery of financial instruments free of payment, physically or by book-entry, to a specified party (the function of the message is NEWM)

-Request the cancellation of a deliver free of payment instruction previously sent by the account owner (the function of the message is CANC)

-Pre-advise the account servicer of a forthcoming deliver free of payment instruction(function of the message is PREA)

-An MT-542 is sent by an account owner to an account servicer (account servicing institution). The account owner may be a broker/dealer which has an account with their custodian.

 

MT103 money transfer there is unconditional or conditional(also known as MT103/field 23)

 

MT202 is similar with only the information shown of source and destination's banks and refers the MT103

 

(MT202 field 21- related reference has to be equal to MT103 field 20-transaction reference number)

 

(MT202 with field 21 equal to it's own field 20 is special for inter-bank transfer, no customers involved.)

 

Sample text of MT103 Field 32: Amount in Words

 

(FIVE HUNDRED MILLION EUROS)

Field 32: Amount in Figures (500,000,000)

 

Field 50: Ordering Customer's Name and Address:     

 

Field 57: Account with Institution

(DEUTSCHE BANK AG.FRANKFURT, TAUNSANLAGE 12, 60325 FRANKFURT AM MAIN, GERMANY) SWIFT™: DEUTDEFFXX

 

Field 59: Beneficiary Customer Beneficiary Name: (GLOBAL BROKER

Beneficiary Legal Address:(123 INTERNATIONAL DR.) Beneficiary Account: (123456)

Reference: 324583

 

Field 70: Details of Payment We,________hereby confirm that these funds are freely available to be used for investment purposes by the named beneficiary herein, at your Customer's discretion for his use and as your Customer may deem fit to enable your Customer to achieve his financial requirements.

 

Field 72: Instructions to Paying Bank: We,________further confirm that, to the best of our knowledge, this funds are clean, clear, of legal origin, and are free of liens or encumbrances of any kind and the rule of full disclosure has been established that these funds were legally obtained from non-criminal business activities.

 

MT 760 Bank Instruments

 

The SWIFT™ MT 760 format is a viable option- one utilized frequently in a wide range of financial transactions, not simply private placement programs. That said, the use of this procedure raise a number of issues of critical importance. Clients considering utilizing this format, therefore, should exercise a measure of caution and restraint. Let's examine some of these issues in turn...

 

Analysis:

-Nature of the SWIFT™ A SWIFT™ MT 760 is a bank-responsible guarantee issued by the senders bank, upon instructions of its account holder, in favor of a particular transaction our counter-party. Since banks never put their own money at risk, the client's funds are "blocked" by the bank, and held by the bank as security(collateral) for the issuance of the SWIFT™. The SWIFT™ MT760, therefore, is more than just an inter-bank message- IT IS A FULL-BLOWN CASH-BACKED NEGOTIABLE INSTRUMENT!

 

-Text the SWIFT™ MT 760 comes in a variety of shapes and sizes, depending on the precise text employed by the sending bank in the field specifications, particularly Field 77C. When offered a SWIFT™ MT 760 procedure by a Trade Group, clients should request the complete text of the SWIFT™ MT760 message so there can be no "SURPRISES" later on. And don't settle for a watered-down "broker" version of the text: the precise language of the field specifications is of critical importance. Each warehouse lender, bank, or trader will have different requirements that may be needed to trigger the Line of Credit to monetize the collateral.

 

-Availability U.S. Banks (and some banks in the Far East) have shown a general unwillingness to issue a SWIFT™ MT 760. Before you can commit to any proposed transaction, therefore, you will need to first confirm that your bank will take instructions to issue the SWIFT™ message. And if your bank won't cooperate, you may wish to move your funds out of that bank to a more accommodating financial institution. However, most U.S. Banks will do MT542 transactions.

 

-COST: keep in mind that the bank charges for issuance of a SWIFT™ MT 760 are not insubstantial, it's normally 0.05% of the amount.

 

MT 799 BANK INSTRUMENTS:

 

MT799 is a simple text message, sent bank to bank. This is used for a bank to bank proof of funds, only. The MT799 option provide.

 

-An account with the SWIFT™ MT799 capability allows bank-to-bank SWIFT™ electronic verification for Proof of Funds in compliance with the SWIFT™ Category 7 "Treasury markets & Syndication" message types. Often there is a misconception that a particular circumstance requires a SWIFT™ MT760 message, when in fact, the SWIFT™ MT799 format provides the required bank confirmation for the application.

 

-There is a $1 Million minimum account size for a SWIFT™ MT799, and additional costs apply.

 

BASIC PAYMENTS:

 

-MT 101 Request for Transfer

-MT 102 Multiple Customer Credit Transfer

-MT 102P Multiple Customer Credit Transfer

-MT 103 Single Customer Credit Transfer

-MT 103P Single Customer Credit Transfer

-MT 104 Customer Direct Debit

-MT 107 Direct Debit

 

DOCUMENTARY CREDITS:

-MT 700 Issue of a Documentary Credit

-MT 701 Issue of a Documentary Credit

-MT 705 Pre-Advice of a Documentary Credit

-MT 707 Amendment to a Documentary Credit

-MT 710 & MT 711 Advice of a Third Bank's Documentary Credit

-MT 720 & MT 721 Transfer of a Documentary Credit

-MT 730 Acknowledgement

-MT 732 Advice of Discharge

-MT 734 Advice of Refusal

-MT 740 Authorization to Reimburse

-MT 742 Reimbursement Claim

-MT 747 Amendment to Authorization to Reimburse

-MT 750 Advice of Discrepancy

-MT 752 Authorization to Pay, Accept, or Negotiate

-MT 754 Advice of Payment/Acceptance/Negotiation

-MT 756 Advice of Reimbursement or Payment

-MT 760 Guarantee

-MT 767 Guarantee Acknowledgement

-MT 768 Acknowledgement of a Guarantee Message

-MT 769 Advice of Reduction or Release

-MT 799 Pre-advice

 

(there are also 790, 791, 792, 795, 796, 798 neither the client or the trading firm will use these)

 

 

NOTE:

-MT543 is no longer used in the banking community.

-MT103/23 BLOCKED FUNDS although the text message may stipulate that this note is not callable, it is an oxymoron, because as the blocked funds vehicle is for the sole purpose to use as a guarantee. This is very important for client to be very wary of using blocked funds transactions. The client becomes the sole guarantor to the trader to access the Loan based upon your collateral guarantee of the MT103 blocked funds. The client will have no control or access to their account in case of default, an automatic lien will be placed on the account freezing the account until lender submits a MT 756 with court order to the bank. The client has no appeals, thus the funds are lost upon default. This disclosure is never disclosed to the client but sugar coated by traders. Our trading firm and banks who are licensed must disclose this very risk transaction. Our insurance policy does not cover Blocked- Funds transactions.