MT 760 Explained
If your business works with Bank Guarantees, Documentary Credits or Letters of Credit (LCs), the term ‘MT 760’ may have been used. MT 760 is a type of SWIFT message type (also known as SWIFTTFBIC), which is a unique bank identifier.
Why is MT 760 used in trade?
MT 760 can be used either by the party issuing or advising a beneficiary on a guarantee or standby Letter of Credit, or by the party issuing a counter-undertaking to the beneficiary.
- URDG (Uniform Rules for Demand Guarantees)
- ICC UCP 600 (International Chamber of Commerce Uniform Customs and Practice for Documentary Credit)
- ISP (International Standby Practices)
What is the format of MT 760?
We’ve put a Document together on the format of MT 760 which you can view here:
Example of an MT 760
Figure 1: An example of a MT760 (Source: SWIFT)
An example of an MT 760 message could include the following:
- A narrative statement explaining the context (e.g. XX company has signed a contract with YY company to provide equipment.
- Narrative would state all of the details of the transaction (as per the formats above).
- The SWIFT message would include the Sender, Message Type (760), Receiver and Sequence number, before providing information required.
What are the rules of the MT 760?
Often MT 760s reach their maximum size limit, so one or more can be used to extend the size. Additional MT 760s require MT 761s, and up to eight can be sent on top of the original MT 760 to provide the relevant information on the SBLC or Guarantee.
It’s important to ensure that duplicate content is not added to supplementary MT 761s (e.g. the Undertaking Amount), and that the information does not conflict with the MT 760.
Sequence C (Optional Information) can only be used when Sequence B is for a counter-undertaking for a Guarantee or Letter of Credit.
What information is required by the financial institution?
Unlike with MT 799, the MT 760 requires much more information. The MT 760 can be used by both the recipient or beneficiary, and requires most information about a transaction, such as:
- Parties involved (Issuer, Beneficiary, Applicant, Obligor, Advising Bank)
- Transaction Details
- Transport details and how the goods will be presented
- Dates and timings
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