METODO BANCARIO INTERNACIONAL SWIFT MT799

MT799
MT799 is an essential part of international trade; a ‘free format message’ sent
between banks, which confirms funds or proof of deposits on a potential trade.
MT799 allows banks to communicate between each other freely through the
SWIFT system, rather than being a mechanism for transferring funds or paying.
If you deal with Bank Guarantees, Documentary Credits, and Letters of Credit
(LCs), you may have heard the term ‘MT799’ being used. A SWIFT code (also
commonly referred to as SWIFTBIC) is a unique identifier, which banks use to
identify and send money to overseas banks.
SWIFT MT799
The MT799 is a free format SWIFT message type in which a banking institution
confirms that funds are in place to cover a potential trade.
This can, on occasion, be used as an irrevocable undertaking, depending on the
language used in the MT799, but is not a promise to pay or any form of bank
guarantee in its standard format. The function of the MT799 is simply to assure
the seller that the buyer does have the necessary funds to complete the trade.
If the subject line of the MT799 is marked as RWA message, it can never block
any funds of the Buyer.
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.
The MT799 is usually issued before a contract is signed and before a letter of
credit or bank guarantee is issued. After the MT799 has been received by the
seller’s bank, it is then normally the responsibility of the seller’s bank to confirm
to Buyer’s bank with full bank responsibility that the Seller owns the product and
is capable of the delivery as written in the referring SPA, at which point the trade
continues towards commencement.
The actual payment method after delivery used by us is MT103 (wire transfer), or
in case of default the SBLC to pay the goods.
An MT799 is an automated message sent electronically from one bank to
another, so you won’t really ’see’ an MT799 at all. The paperwork associated with
an MT799 will vary from bank to bank, though most banks follow a similar format.
We will send you our verbiage, which is common standard (ICC) and only varies
a bit from bank to bank.