SWIFT – The financial messaging platform. SWIFT is an acronym for ‘Society for Worldwide Interbank Financial Telecommunication’. SWIFT provides secure messaging services and interface software to wholesale financial institutions (mainly banks). The transmitted messages are highly encrypted and thus are accepted as a reliable and secure way of interbank electronic communication.
Notable types of Swift messages that serve the documentary credit platform: i) MT700 and ii) MT740
MT700: MT 700 Swift message is sent by the Issuing bank to the Advising bank when issuing a Letter of Credit.
MT 700 Swift message has several fields that have designated numeric or alpha numeric field codes. For a description of the Various Fields that are used in issuing a Letter of Credit click here or on the button below: