MT760 & MT799

What is a MT 760?

The SWIFT MT 760 format is a viable option – one utilized often in a wide range
of fiscal transactions, not simply private placement programs. That said, the use of
this procedure raises a number of issues of vital importance. Clients taking into account
utilizing this format, therefore, should exercise a measure of caution and restriction. Let’s
inspect some of these issues in turn…

What is a MT760 Used For?

A Swift MT760 (MT means Thought Type) is a bank-responsible guarantee (LC, SBLC, BG) as well as Blocked Fund Letter issue communicated bank to bank by the sender bank. MT 760 sent upon instructions of its client (applicant) in favor of a particular transactions or countery party (beneficiary). I the case of Blocked Fund Your issuing bank will submitt a bank to bank thought stating that they have blocked funds for a particular time frame particularly for the beneficiary of a recieving bank. Those funds are now an asset of the Beneficiary bank account.

If you want to protect yourself  in private placement, you MUST be with you the 2 most vital acronyms of all, the “MT 760” and “MT 799”.

Whether you are a client, broker, consultant, or even just a beginner, the MT 760 and MT 799 are two terms that are vital to learn inside and out!.  Many times, if you speak to brokers who claim to have trade programs, you can tell if their investment is real by asking just one question, “Clarify the MT 760 and MT 799, what are the risks and fees?” If you get an resolution that sounds similar to the description we give below, then you may want to dig a modest deeper! If you don’t, admit that these people are less educated than they claim, and may not be the best option. First things first, let’s clarify the definition and attention of these terms in the modern day private placement affair.

MT799 is a simple text thought, sent bank to bank. This is used for a bank to bank proof of funds, only. The MT799 is not a form of payment and it is not a bank undertaking or look excellent to pay. It is simply a bank to bank confirmation of the funds on deposit, nothing more.

The MT 799 is a swift thought used between banks to converse in written form, and is usually referred to as “pre-advice”.

For example, Bank “A” may send a MT 799 to Bank “B” stating: “We confirm “XXX” amount on deposit and are ready to block this amount via MT 760 in favor of account “XXX” at your bank.  Please confirm readiness and receipt.”

Typically, the MT 799 will be needed frankly before the MT 760 is issued, and there may be small fees.  Even with what most brokers may claim, the MT 799 is NOT used as collateral,and can NOT be used to enter a private placement program.

What does the SWIFT 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 “Reserves Markets & Syndication” thought types. Often there is a misconception that a particular circumstance requires a SWIFT MT760 thought, when in fact, the SWIFT MT799 format provides the required bank confirmation for the attention. There is a $1 million minimum account size for a SWIFT MT799, and bonus costs apply.

SAMPLE TEXT FOR SWIFT MT799 FOUND HERE!!

Now that we know about the MT 799, let’s take a look at it’s cousin, the Swift MT 760.

The MT 760 is a swift thought used to block funds in favor of someone other than the owner, collateralizing the asset via this thought, while allowing for loans and liens against it.  For example, most private placements require the investor to send a MT 760 to the trader’s account, allowing the trader to use this swift as a collateral guarantee for their bank.   Again, even with what many brokers may claim, this is NOT everything you need to know about the MT 760.

First and chief, the fees for blocking a large amount of funds via MT 760 can be more than you would guess. In most cases, your bank will charge 1-2% of the value being blocked for this benefit.  For example, on a 100M bank instrument this can be 1-2M that the owner must come out of their pocket with, unless they have a special relationship with their bank.

If you complete the MT 760 and pay the fees, you should observe everything very closely from that point on.  Once the MT 760 has hit the account of the trader, the line of credit should become available surrounded by 72 hours.  At that time, the trader should be able to make their first bank instrument buy, and give you a DEFINITE TIMELINE for your first profit disbursement.  You may say, “Why do I need to watch this administer so closely?”  Well, here is the part that most brokers don’t tell their clients…

When blocked in someone’s favor, the MT 760 collateralizes assets in the form of a swift guarantee, and by doing so, allows the beneficiary to draw credit against it.  This means, if the loan to the “trader” was defaulted on, the bank would seize the collateral and you would be out of your money! Even if this scenario is doable, I would premeditated it rare for two reasons…

1. In today’s world, no bank will loan Millions of dollars to someone they haven’t vetted, no matter what collateral is on hand.
2. Second, the MT 760 is quite rare, and this usually draws attention to the beneficiary of the swift.

In summary, the MT 760 can be safe, or it can blow up in your face.  As always, the key is having a real trader and most importantly, being paid your payments as scheduled.  If the trader makes a statement about yields and a time line, they must ALWAYS keep in line with their promises.  Over the THOUSANDS of transactions we have been caught up in, the only ones that have closed have been smooth from the start, with NO hiccups.

Remember, both RISK and FEES are a part of blocking funds via MT 760!!!!

In addition, by understanding the MT 760 and MT 799, you can clear out the TIME WASTING brokers from your arrangement, and work MORE EFFICIENTLY towards your goals.

Let’s face it, very few people know as much as you do after reading this condition. Use it to your benefit to qualify the private placement funds you come across, and it will make life a lot simpler.

• Question yourself, if someone can’t clarify the MT 760 and MT 799 in thorough point, do you reckon they have ever closed a deal?
• Then question yourself, do I want to risk Millions with someone that has NEVER been successful?  It’s not hard to see, culture is the key!

EXAMPLE OF MT760 TEXT FOUND HERE!!

MT760 Analysis:

1. Nature of SWIFT A SWIFT MT 760 is a bank-responsible guarantee issued by the sender bank, upon instructions of its account holder, in favour of a particular transaction or counteract-party. Since banks never place their own money at risk, the clients funds are “blocked” by the bank, and held by the bank as wellbeing (collateral) for the issuance of the SWIFT. The SWIFT MT 760, therefore, is more than just an inter-bank thought – it is a full-blown cash-backed negotiable instrument!
2. Text The SWIFT MT 760 comes in a variety of shapes and sizes, depending on the strict text employed by the sending bank in the field  pecifications, particularly Field 77C. When offered a SWIFT MT 760 procedure by a Trade Group, clients should question for the complete text of the SWIFT MT 760 thought so there can be no “surprises” later on. And don’t settle for a watered-down “broker” version of the text; the strict language of the field specifications is of vital importance.
3. Cost, Keep in mind that the bank charges for issuance of a SWIFT MT 760 are not insubstantial, it’s normally 0.02 – 0,05 % of the amount.
4. 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 thought. And if your bank won’t cooperate, you may wish to go your funds out of the bank to a more accommodating fiscal institution!