A Deep Dive into SWIFT MT Messages: Continuing Our Exploration

10 min readAug 17, 2024

In our last article, we took a close look at the ISO 20022 Pacs messages, which are crucial for facilitating payments between banks and their customers. While Pacs messages are becoming increasingly important in global finance, they are just one part of the broader ecosystem of financial messaging.

Today, we’re diving into another cornerstone of international banking: SWIFT MT (Message Type) messages. These messages have been the backbone of cross-border financial communication for decades and continue to play a vital role in ensuring that funds move smoothly and securely between financial institutions worldwide.

If you’ve already familiarized yourself with Pacs messages, understanding SWIFT MT messages is the next logical step. These messages cover a wide range of financial activities, from payment instructions and confirmations to account statements and intra-day updates.

What Exactly Are SWIFT MT Messages?

SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is a global network that enables secure and standardized financial messaging between banks and financial institutions. The MT (Message Type) series is a set of structured messages used to perform a variety of financial tasks, from payments and securities trading to treasury and trade finance operations.

Each SWIFT MT message type serves a specific purpose and follows a standardized format, ensuring that the information is clear, consistent, and understood by all parties involved, no matter where they are in the world.

Breaking Down the SWIFT MT Message Structure

At the heart of every SWIFT MT message is a structured format that includes essential information for processing the transaction. Understanding this structure is key to mastering SWIFT MT messages.

Basic Structure of a SWIFT MT Message:

Message Type Identifier (MTxxx):

MTxxx: The first three digits identify the message type, where each digit has a specific meaning (e.g., MT103, MT202).

Block 1: Basic Header Block:

Sender Information: Identifies the bank or institution sending the message. It includes details such as the bank’s SWIFT code and a session number that helps track the message through the network.
Message Type: Confirms the type of message being sent.

Block 2: Application Header Block:

Receiver Information: Identifies the bank or institution receiving the message. It includes the SWIFT code of the receiving institution and specifies the priority of the message (e.g., normal, urgent).
Message Priority: Specifies the urgency of the message (e.g., normal, urgent).

Block 3: User Header Block (optional):

Special Instructions: Can include specific instructions for the transaction, such as handling charges.

Block 4: Text Block:

Transaction Details: Contains the main content of the message, including payment instructions, beneficiary details, amounts, currency, and any reference numbers or additional instructions required to process the transaction.

Block 5: Trailer Block:

Security Information: Includes validation and security information to ensure the integrity of the message.

Each SWIFT MT message type builds on this basic structure, tailoring it to the specific needs of the transaction.

SWIFT MT101: Request for Transfer

Purpose: The MT101 message is used to instruct a bank to transfer funds from the sender’s account to a specified beneficiary. It’s commonly used for initiating payments, often in bulk, such as for payroll, vendor payments, or other multi-payment scenarios.

When You’d Use It:

Corporate Payments: A corporate customer might use MT101 to instruct their bank to make multiple payments from their accounts to different beneficiaries.
Centralized Treasury Operations: Multinational companies often use MT101 to centralize and automate their payment processing.

Message Format:

An MT101 message might look like this:

{1:F01BANKBEBBAXXX0000000000}{2:I101BANKDEFFXXXXN}{4:
:20:PAYREF123456
:30:20240817
:21:PAYROLL
:32B:USD100000,
:50K:/1234567890123456
JOHN DOE
123 MAIN ST
ANYTOWN USA
:59:/6543210987654321
JANE SMITH
456 HIGH ST
OTHER TOWN UK
:71A:SHA
-}

Explanation:

Message Type (MT101): Indicates that this is a request for transfer message.
Transaction Reference Number (20): A unique identifier for the payment instruction.
Value Date (30): The date on which the payment should be made.
Ordering Customer (50K): The account from which the funds will be debited, along with the customer’s details.
Beneficiary (59): The account that will receive the funds, along with the beneficiary’s details.
Charges (71A): Specifies how the transaction charges will be borne (e.g., by the sender, recipient, or shared).

Real-World Example:

A multinational corporation needs to pay multiple suppliers in different countries. The company sends an MT101 message to its bank, which processes all the payments, ensuring that each supplier receives the correct amount in the appropriate currency.

SWIFT MT103: Single Customer Credit Transfer

Purpose: The MT103 message is the standard message type used for making a single customer credit transfer between banks. It’s typically used for international wire transfers where the sender’s bank instructs another bank to credit the beneficiary’s account.

When You’d Use It:

International Wire Transfers: MT103 is the go-to message for sending money across borders.
High-Value Payments: It’s commonly used for significant, one-off payments between banks on behalf of customers.

Message Format:

Here’s how an MT103 message might look:

{1:F01BANKBEBBAXXX0000000000}{2:I103BANKDEFFXXXXN}{4:
:20:TRN987654321
:23B:CRED
:32A:20240817USD5000,
:50K:/1234567890123456
JOHN DOE
123 MAIN ST
ANYTOWN USA
:59:/6543210987654321
JANE SMITH
456 HIGH ST
OTHER TOWN UK
:70:INVOICE 4567 PAYMENT
:71A:SHA
-}

Explanation:

Message Type (MT103): Indicates that this is a single customer credit transfer.
Transaction Reference Number (20): A unique identifier for this specific payment.
Bank Operation Code (23B): Specifies the type of operation being conducted, such as a credit transfer.
Value Date/Currency/Interbank Settled Amount (32A): The date the payment is to be made, the currency, and the amount.
Ordering Customer (50K): The sender’s account details, including account number and name.
Beneficiary Customer (59): The recipient’s account details, including account number and name.
Remittance Information (70): Information related to the payment, such as an invoice number or payment purpose.
Details of Charges (71A): Indicates how the charges for the transaction are handled — whether shared (SHA), borne by the sender (OUR), or by the beneficiary (BEN).

Real-World Example:

An individual in the United States wants to send money to a family member in the United Kingdom. The U.S. bank sends an MT103 message to the recipient’s bank in the UK, instructing it to credit the family member’s account with the specified amount.

SWIFT MT202: General Financial Institution Transfer

Purpose: The MT202 message is used for bank-to-bank payments, often for settling obligations related to a customer payment. Unlike MT103, which is used for customer payments, MT202 is typically used for the movement of funds between financial institutions.

When You’d Use It:

Interbank Transfers: MT202 is used for the settlement of transactions between banks, such as clearing net positions or transferring funds between correspondent banks.
Treasury Operations: It’s also used for moving funds between the treasury accounts of different banks.

Message Format:

An MT202 message might look like this:

{1:F01BANKBEBBAXXX0000000000}{2:I202BANKDEFFXXXXN}{4:
:20:TRN7654321
:32A:20240817EUR100000,
:52A:BANKBEBBXXX
:57A:BANKDEFFXXX
:58A:BANKFRPPXXX
-}

Explanation:

Message Type (MT202): Indicates that this is a general financial institution transfer.
Transaction Reference Number (20): A unique identifier for this interbank transfer.
Value Date/Currency/Interbank Settled Amount (32A): Specifies the date, currency, and amount of the transfer.
Ordering Institution (52A): Identifies the bank that is sending the funds.
Beneficiary Institution (57A): Identifies the bank that is receiving the funds.
Account With Institution (58A): May specify the bank where the funds should be credited, particularly in cases involving correspondent banks.

Real-World Example:

Bank A needs to settle a large payment with Bank B. An MT202 message is sent from Bank A to Bank B, instructing it to transfer a specified amount of money between their accounts.

SWIFT MT199: Free Format Message

Purpose: The MT199 is a free-format message used for communication between banks when there is no other standardized message format available. It can be used for various purposes, such as inquiries, additional information related to a transaction, or informal requests.

When You’d Use It:

General Communication: When banks need to send non-standardized information that doesn’t fit into other MT message types.
Transaction Inquiries: For following up on the status of a payment or other transaction.

Message Format:

An MT199 message might look like this:

{1:F01BANKBEBBAXXX0000000000}{2:I199BANKDEFFXXXXN}{4:
:20:INQ1234567
:79:PLEASE PROVIDE STATUS OF PAYMENT REFERENCE 987654321
-}

Explanation:

Message Type (MT199): Indicates that this is a free-format message.
Transaction Reference Number (20): A unique identifier for the communication.
Narrative (79): The main content of the message, where the sender can include any information or request. In this example, the sender is asking for the status of a specific payment.

Real-World Example:

Bank A has sent a payment to Bank B but hasn’t received a confirmation. To inquire about the status of the payment, Bank A sends an MT199 message to Bank B, asking for an update on payment reference 987654321. This informal communication allows Bank A to follow up without the need for a more structured message format.

SWIFT MT900 — Confirmation of Debit

Purpose: The MT900 message is used to confirm that a debit has been made to an account. It provides details of the transaction, including the amount debited, the account affected, and the date of the transaction.

When You’d Use It:

Account Reconciliation: When a bank needs to notify another bank or a customer that funds have been debited from their account.
Payment Confirmation: To confirm that a payment instruction has been carried out and funds have been debited accordingly.

Message Format:

An MT900 message might look like this:

{1:F01BANKBEBBAXXX0000000000}{2:I900BANKDEFFXXXXN}{4:
:20:DBT1234567
:25:1234567890123456
:32A:20240817USD10000,
:61:170817D10000,00NMSCREDIT TRANSFER
-}

Real-World Example:

After a payment of $10,000 is made from a company’s account to a supplier, the bank sends an MT900 message to confirm that the funds have been successfully debited. This confirmation helps the company reconcile its accounts, ensuring that all transactions are accurately recorded.

SWIFT MT910: Confirmation of Credit

Purpose: The MT910 message is used to confirm that a credit has been made to an account. It provides details of the transaction, including the amount credited, the account credited, and the date of the transaction.

When You’d Use It:

Account Reconciliation: When a bank needs to notify another bank or a customer that funds have been credited to their account.
Payment Confirmation: To confirm that a payment instruction has been received and funds have been credited accordingly.

Message Format:

An MT910 message might look like this:

{1:F01BANKBEBBAXXX0000000000}{2:I910BANKDEFFXXXXN}{4:
:20:CRD1234567
:25:1234567890123456
:32A:20240817USD10000,
:61:170817C10000,00NMSCREDIT TRANSFER
-}

Explanation:

Message Type (MT910): Indicates that this is a confirmation of credit message.
Transaction Reference Number (20): A unique identifier for the credit transaction.
Account Number (25): The account to which the funds were credited.
Value Date/Currency/Credit Amount (32A): The date the funds were credited, the currency, and the amount.
Statement Line (61): Provides a brief description of the transaction, indicating that it was a credit resulting from a previous transfer.

Real-World Example:

A company in Germany receives a payment from a customer in the United States. The company’s bank sends an MT910 message to confirm that the payment has been credited to the company’s account, providing details of the amount and the transaction date.

SWIFT MT940: Customer Statement Message

Purpose: The MT940 message is used to provide a detailed statement of transactions on an account. It includes all the debits and credits that have occurred over a specified period, making it an essential tool for account reconciliation.

When You’d Use It:

Daily Account Statements: Banks use MT940 to send customers a daily summary of their account activity.
Account Reconciliation: Corporate customers often use MT940 messages for reconciling their bank accounts with their internal records.

Message Format:

An MT940 message might look like this:

{1:F01BANKBEBBAXXX0000000000}{2:I940BANKDEFFXXXXN}{4:
:20:STATEMENT
:25:1234567890123456
:28C:00001/001
:60F:C20240816EUR5000,00
:61:20240817D1000,00NTRFNONREF//12345678
:86:PAYMENT TO SUPPLIER XYZ
:62F:C20240817EUR4000,00
-}

Explanation:

Message Type (MT940): Indicates that this is a customer statement message.
Transaction Reference Number (20): Identifies the statement.
Account Number (25): The account for which the statement is being provided.
Statement Number (28C): The sequence number of the statement.
Opening Balance (60F): The opening balance on the account at the start of the statement period.
Transaction Details (61): Each line represents a transaction, including the date, amount, and a brief description.
Additional Information (86): Provides further details about each transaction, such as the payment reference or description.
Closing Balance (62F): The balance on the account at the end of the statement period.

Real-World Example:

A corporation receives an MT940 message from its bank each day, detailing all the transactions that occurred in its account. This helps the company keep track of payments, receipts, and overall account balances.

SWIFT MT942 — Interim Transaction Report

Purpose: The MT942 message provides real-time or intra-day updates on account activity. It includes details of transactions that have occurred since the last account statement, allowing for more immediate tracking of financial movements.

When You’d Use It:

Real-Time Monitoring: MT942 is particularly useful for businesses that need to monitor their cash flow closely throughout the day, such as in high-volume trading or treasury management.
Intra-Day Updates: Banks use MT942 to provide customers with updates on transactions as they happen.

Message Format:

An MT942 message might look like this:

{1:F01BANKBEBBAXXX0000000000}{2:I942BANKDEFFXXXXN}{4:
:20:INTERIM
:25:1234567890123456
:28C:00001/001
:34F:EUR
:13D:20240817
:61:20240817D500,00NMSCREDIT TRANSFER
:86:PARTIAL PAYMENT TO SUPPLIER ABC
:62F:C20240817EUR4500,00
-}

Explanation:

Message Type (MT942): Indicates that this is an interim transaction report.
Transaction Reference Number (20): Identifies the interim report.
Account Number (25): The account for which the interim report is being provided.
Statement Number (28C): The sequence number of the interim report.
Currency and Amount (34F): The currency in which the transactions are reported and the amount.
Transaction Details (61): Each line represents a transaction, including the date, amount, and a brief description.
Additional Information (86): Provides further details about each transaction, such as the payment reference or description.
Balance (62F): The balance on the account after the reported transactions have occurred.

Real-World Example:

A company monitoring its cash flow throughout the day receives MT942 messages from its bank, providing updates on each transaction as it occurs. This allows the company to make informed financial decisions in real-time.

Summary of Common SWIFT MT Messages

SWIFT MT messages are essential tools for facilitating a wide range of financial transactions between banks and financial institutions worldwide. These messages ensure that transactions are processed efficiently, securely, and accurately, whether they involve simple account updates or complex cross-border payments.

MT101: Used for requesting transfers, often in bulk, for corporate payments and centralized treasury operations.
MT103: The standard for single customer credit transfers, especially in international wire transfers.
MT202: A general financial institution transfer message, often used for interbank settlements and treasury operations.
MT199: A free-format message used for various informal communications between banks.
MT900: Confirms that a debit has been made to an account, useful for account reconciliation and payment confirmations.
MT910: Confirms that a credit has been made to an account, providing details of the transaction.
MT940: Provides detailed daily statements of account activity, aiding in account reconciliation.
MT942: Offers real-time or intra-day updates on account transactions, useful for businesses that require close monitoring of their cash flow.

Conclusion

SWIFT MT messages have long been the backbone of the global financial system, facilitating secure and efficient cross-border transactions between financial institutions. For professionals in international banking, corporate finance, or financial technology, a deep understanding of these message types is essential.

In our next article, we’ll delve into the ongoing transition from SWIFT MT to ISO 20022 (MX) messages, exploring how these two standards map to each other and what this means for the future of financial communication. Stay tuned to learn more about navigating this significant shift in global finance.