EXAMPLE OF STANDARD SWIFT MT760 DELIVERY. (2024)

A Swift MT760 (MT means Message Type) is a bank-responsible guarantee (LC, SBLC, BG) as well as Blocked Fund Letter issue communicated bank to bank by the sender bank. MT760 sent upon instructions of its client (applicant) in favor of a particular transactions or country party (beneficiary). In the case of Blocked Fund your issuing bank will submit a bank to bank message stating that they have blocked funds for a particular time frame specifically for the beneficiary of a receiving bank. Those funds are now an asset of the Beneficiary bank account.

MT760 is a swift message used to block funds in favor of someone other than the owner, collateralize the asset via this message, while allowing for loans and liens against it.For example, most private placements require the investor to send MT760 to the trader’s account, allowing the trader to use this swift as a collateral guarantee for their bank. Again, despite what many brokers may claim, this is NOT everything you need to know about the MT760. Now that you do know the definitions and applications, let’s cover the key points no one ever brings up about the MT760: the FEES, and the RISKS. First and foremost, the fees for blocking a large amount of funds via MT760 can be more than you would expect. In most cases, your bank will charge 1-2% of the value being blocked for this service.

For example, on a €100 Million bank instrument this can be €1-€2 Million that the owner must come out of their pocket with, unless they have a special relationship with their bank. If you complete the MT760 and pay the fees, you should observe everything very closely from that point on.Once the MT760 has hit the account of the trader, the line of credit should become available within 72 hours.At that time, the trader should be able to make their first bank instrument purchase, and give you a DEFINITE TIMELINE for your first profit disbursem*nt.You may say, “Why do I need to watch this process so closely?”Well, here is the part that most brokers don’t tell their clients. When blocked in someone’s favor, the MT760 collateralize 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. Though this scenario is possible, I would consider it rare for two reasons.In today’s world, no bank will loan Millions of Euros to someone they haven’t vetted, no matter what collateral is on hand.Second, the MT760 is quite rare, and this usually draws attention to the beneficiary of the swift. The main risks of MT760 is Identity theft.

MT Name = Guarantee/Standby LC

Purpose = Issues or requests the issue of a guarantee or Standby LC

DIFFERENCES BETWEEN THE MT799 SWIFT AND THE MT760 SWIFT

The global swift system is used by more than eight thousand financial institutions in sending and receiving various financial statements and letters. The most prominent letter used in this system is the MT760 swift and theMT799 swift. These two letters have a number of differences and similarities. The main similarity between the two types of swift messages is in how they are sent. Both letters are sent from one bank to another without necessarily consulting the client. Another similarity is that both letters are sent during a significantly large transaction between two individuals. In spite of these similarities, the two swift messages have numerous differences that individuals should be aware of.

The main difference between the MT760 swift message and the MT799 swift message is in when they are sent. The MT799 is sent before the MT760 and is a prelude to the sending of the MT760. Hence, the role of the MT799 is merely to notify and nothing else. This document is sent days or weeks before the sending of the MT760. It is important to note that the MT799 has no impact on the financial situation of an individual. This is another big difference that exists between the two documents.

The MT760 swift message will impact the financial condition of a client since it a verification of freezing of funds by one bank. TheMT799 swiftmessage will have no impact on the financial situation of an individual since it is sent before the funds are frozen. This is another difference between the two documents. Another difference between the two documents is that the MT760 swift is sent after the sending bank has set aside the required amount of money. The MT799 is sent before the sending bank freezes the required amount of money in the purchasing individual’s bank account.

This is a Swift class 7:Bank Guaranteeand Letter of Credit procedure, Procedure 60: Blocked Funds. The Course of Action When yourBankissues MT760: When MT760 is issued, the issuingbankputs a hold on the client's funds, blocking the client from using them.