The Society for Worldwide Interbank Financial Telecommunications (SWIFT) is a bank code and member-owned cooperative essential for sending international or cross-border payments as it provides transaction security.
The SWIFT network is a messaging infrastructure, not a payments system. The network doesn’t actually transfer the money – it communicates transaction orders between institutions using SWIFT codes.
Thanks to SWIFT, we have standardized IBAN (International Bank Account Number) and BIC (Bank Identifier Code) formats that are used for actual funds transfer.
In addition to customer and bank funds transfers, SWIFT is used to transmit foreign exchange confirmations in a third party foreign exchange deal, debit and credit entry confirmations, statements, collections, and documentary credits.
The platform uses a standardized proprietary communications platform to allow the transfer of secure financial transactions, but doesn’t hold funds on its own, and doesn’t manage external client accounts. SWIFT’s primary function is its power to facilitate secure, efficient financial communication between member institutions.
How SWIFT Works: SWIFT codes are a combination of various letters known as Bank Identifier Codes (BIC) used to identify the branch codes of banks. The terms BIC and SWIFT codes are often used interchangeably, even though they mean the same thing.
Bank identifier code (BIC), SWIFT code, SWIFT ID, or ISO 9362 code – Interchangeable Terms
A bank needs to be a SWIFT member to receive the SWIFT code and be part of the network. Then, for any transaction made by banks or financial institutions on an international level, they will use their unique SWIFT code, which acts as an international digital language.
The concept makes for a faster, more hassle-free process. The SWIFT system is electronic and uses a cloud platform to quickly transmit codes to and from banks.
The SWIFT network primarily started for simple payment instructions, although it now sends different message types for a wide variety of actions, including security transactions, treasury transactions, trade transactions, and system transactions.
SWIFT message types are the format or schema used to send messages to financial institutions on the SWIFT network. The original message types were developed by SWIFT and a subset was retrospectively made into an ISO standard, ISO 15022.
ISO 20022 is the successor to ISO 15022. The main difference between the two is that with ISO 20022, messages are more versatile and less tied to specific formats. This boosts the quality and accuracy of data sent between payments, securities, and internal systems.
Message type (MT) messages are structured according to the specifications of the ISO 15022 standard, using the FIN protocol. MX messages are structured according to the ISO 20022 standard and use the XML protocol.
Message structures
MT messages are followed by a three-digit number:
The first digit indicates the message category
The second digit indicates the message group
The third digit specifies the message type
The MX message is composed of four parts:
4 alpha characters indicate the message type
3 alphanumeric characters identify the message number
3 numeric characters highlight the message variant
2 numeric characters indicate the version number
For example, a single customer credit transfer MT 103 will appear as pacs.008.001.0x in MX format. MX messages will be composed of 940 separate fields and will incorporate more structured, robust and comprehensive data.
The adoption of the MX format will be progressive and depends on countries or regions. In the European Union, cross-border / high value payments across the regions going into the SWIFT Network, Target2 and a few others in scope will be transitioned first in November 2022. The U.S. Federal Reserve will transition in November 2023. Both formats will coexist until 2025 (the deadline set by SWIFT), and most of MT messages will then no longer be permitted. The following figure shows the timeline planned for the interbank space.
MT vs MX Message Types
SWIFT groups message types into the following categories:
Category 1 Messages: Customer Payments and Cheques
Category 3 Messages: Treasury Markets: Foreign Exchange and Derivatives
Category 4 Messages: Collections and Cash Letters
Category 5 Messages: Securities Markets
Category 6 Messages: Treasury Markets: Precious Metals and Syndications
Category 7 Messages: Documentary Credits and Guarantees
Category 8 Messages: Travellers Cheques
Category 9 Messages: Cash Management and Customer Status
Category 1 Messages
The table below lists the Category 1 message types, Customer Payments and Cheques, with the type designation MT 1xx. Table 1 Customer Payments and Cheques
SWIFT Message Type
Description
MT 101
Request for Transfer
MT 102
Multiple Customer Credit Transfer
MT 102+(STP)
Multiple Customer Credit Transfer (STP)
MT 103
Single Customer Credit Transfer
MT 103+ (REMIT)
Single Customer Credit Transfer (REMIT)
MT 103+ (STP)
Single Customer Credit Transfer (STP)
MT 104
Direct Debit and Request for Debit Transfer Message (STP)
MT 105
EDIFACT Envelope
MT 106
EDIFACT Envelope
MT 107
General Direct Debit Message
MT 110
Advice of Cheque(s)
MT 111
Request for Stop Payment of a Cheque
MT 112
Status of a Request for Stop Payment of a Cheque
MT 121
Multiple Interbank Funds Transfer (EDIFACT FINPAY Message)
MT 190
Advice of Charges, Interest and Other Adjustments
MT 191
Request for Payment of Charges, Interest and Other Expenses
MT 192
Request for Cancellation
MT 195
Queries
MT 196
Answers
MT 198
Proprietary Message
MT 199
Free Format Message
Category 2 Messages
The table below lists the Category 2 message types, Financial Institution Transfers, with the type designation MT 2xx. Table 2 Financial Institution Transfers
SWIFT Message Type
Description
MT 200
Financial Institution Transfer for its Own Account
MT 201
Multiple Financial Institution Transfer for its Own Account
MT 202
General Financial Institution Transfer
MT 203
Multiple General Financial Institution Transfer
MT 204
Financial Markets Direct Debit Message
MT 205
Financial Institution Transfer Execution
MT 206
Cheque Truncation Message
MT 207
Request for Financial Institution Transfer
MT 210
Notice to Receive
MT 256
Advice of Non-Payment of Cheques
MT 290
Advice of Charges, Interest and Other Adjustments
MT 291
Request for Payment of Charges, Interest and Other Expenses
MT 292
Request for Cancellation
MT 295
Queries
MT 296
Answers
MT 298
Proprietary Message
MT 299
Free Format Message
Category 3 Messages
The table below lists the Category 3 message types, Treasury Markets, Foreign Exchange, Money Markets, and Derivatives, with the type designation MT 3xx. Table 3 Treasury Markets, Foreign Exchange, Money Markets, and Derivatives
SWIFT Message Type
Description
MT 300
Foreign Exchange Confirmation
MT 303
Forex/Currency Option Allocation Instruction
MT 304
Advice/Instruction of a Third Party Deal
MT 305
Foreign Currency Option Confirmation
MT 306
Foreign Currency Option Confirmation
MT 307
Advice/Instruction of a Third Party FX Deal
MT 308
Instruction for Gross/Net Settlement of Third Party FX Deals
MT 320
Fixed Loan/Deposit Confirmation
MT 321
Instruction to Settle a Third Party Loan/Deposit
MT 330
Call/Notice Loan/Deposit Confirmation
MT 340
Forward Rate Agreement Confirmation
MT 341
Forward Rate Agreement Settlement Confirmation
MT 350
Advice of Loan/Deposit Interest Payment
MT 360
Single Currency Interest Rate Derivative Confirmation
MT 361
Cross Currency Interest Rate Swap Confirmation
MT 362
Interest Rate Reset/Advice of Payment
MT 364
Single Currency Interest Rate Derivative Termination/Recouponing Confirmation
MT 365
Single Currency Interest Rate Swap Termination/Recouponing Confirmation
MT 380
Foreign Exchange Order
MT 381
Foreign Exchange Order Confirmation
MT 390
Advice of Charges, Interest and Other Adjustments
MT 391
Request for Payment of Charges, Interest and Other Expenses
MT 392
Request for Cancellation
MT 395
Queries
MT 396
Answers
MT 398
Proprietary Message
MT 399
Free Format Message
Category 4 Messages
The table below lists the Category 4 message types, Collections and Cash Letters, with the type designation MT 4xx. Table 4 Collections and Cash Letters
SWIFT Message Type
Description
MT 400
Advice of Payment
MT 405
Clean Collection
MT 410
Acknowledgment
MT 412
Advice of Acceptance
MT 416
Advice of Non-Payment/Non-Acceptance
MT 420
Tracer
MT 422
Advice of Fate and Request for Instructions
MT 430
Amendment of Instructions
MT 450
Cash Letter Credit Advice
MT 455
Cash Letter Credit Adjustment Advice
MT 456
Advice of Dishonor
MT 490
Advice of Charges, Interest and Other Adjustments
MT 491
Request for Payment of Charges, Interest and Other Expenses
MT 492
Request for Cancellation
MT 495
Queries
MT 496
Answers
MT 498
Proprietary Message
MT 499
Free Format Message
Category 5 Messages
The table below lists the Category 5 message types, Securities Markets, with the type designation MT 5xx. Table 5 Securities Markets
Request for Payment of Charges, Interest and Other Expenses
MT 592
Request for Cancellation
MT 595
Queries
MT 596
Answers
MT 598
Proprietary Message
MT 599
Free Format Message
Category 6 Messages
The table below lists the Category 6 message types, Treasury Markets, Precious Metals, with the type designation MT 6xx. Table 6 Treasury Markets, Precious Metals
SWIFT Message Type
Description
MT 600
Precious Metal Trade Confirmation
MT 601
Precious Metal Option Confirmation
MT 604
Precious Metal Transfer/Delivery Order
MT 605
Precious Metal Notice to Receive
MT 606
Precious Metal Debit Advice
MT 607
Precious Metal Credit Advice
MT 608
Statement of a Metal Account
MT 609
Statement of Metal Contracts
MT 620
Metal Fixed Loan/Deposit Confirmation
MT 643
Notice of Drawdown/Renewal
MT 644
Advice of Rate and Amount Fixing
MT 645
Notice of Fee Due
MT 646
Payment of Principal and/or Interest
MT 649
General Syndicated Facility Message
MT 690
Advice of Charges, Interest and Other Adjustments
MT 691
Request for Payment of Charges, Interest and Other Expenses
MT 692
Request for Cancellation
MT 695
Queries
MT 696
Answers
MT 698
Proprietary Message
MT 699
Free Format Message
Category 7 Messages
The table below lists the Category 7 message types, Treasury Markets, Syndication, with the type designation MT 7xx. Table 7 Treasury Markets, Syndication
SWIFT Message Type
Description
MT 700
Issue of a Documentary Credit
MT 701
Issue of a Documentary Credit
MT 705
Pre-Advice of a Documentary Credit
MT 707
Amendment to a Documentary Credit
MT 710
Advice of a Third Bank’s Documentary Credit
MT 711
Advice of a Third Bank’s Documentary Credit
MT 720
Transfer of a Documentary Credit
MT 721
Transfer of a Documentary Credit
MT 730
Acknowledgment
MT 732
Advice of Discharge
MT 734
Advice of Refusal
MT 740
Authorization to Reimburse
MT 742
Reimbursement Claim
MT 747
Amendment to an Authorization to Reimburse
MT 750
Advice of Discrepancy
MT 752
Authorization to Pay, Accept or Negotiate
MT 754
Advice of Payment/Acceptance/Negotiation
MT 756
Advice of Reimbursement or Payment
MT 760
Guarantee
MT 767
Guarantee Amendment
MT 768
Acknowledgment of a Guarantee Message
MT 769
Advice of Reduction or Release
MT 790
Advice of Charges, Interest and Other Adjustments
MT 791
Request for Payment of Charges, Interest and Other Expenses
MT 792
Request for Cancellation
MT 795
Queries
MT 796
Answers
MT 798
Proprietary Message
MT 799
Free Format Message
Category 8 Messages
The table below lists the Category 8 message types, Travellers Cheques, with the type designation MT 8xx. Table 8 Travellers Cheques
SWIFT Message Type
Description
MT 800
T/C Sales and Settlement Advice [Single]
MT 801
T/C Multiple Sales Advice
MT 802
T/C Settlement Advice
MT 810
T/C Refund Request
MT 812
T/C Refund Authorization
MT 813
T/C Refund Confirmation
MT 820
Request for T/C Stock
MT 821
T/C Inventory Addition
MT 822
Trust Receipt Acknowledgment
MT 823
T/C Inventory Transfer
MT 824
T/C Inventory Destruction/Cancellation Notice
MT 890
Advice of Charges, Interest and Other Adjustments
MT 891
Request for Payment of Charges, Interest and Other Expenses
MT 892
Request for Cancellation
MT 895
Queries
MT 896
Answers
MT 898
Proprietary Message
MT 899
Free Format Message
Category 9 Messages
The table below lists the Category 9 message types, Cash Management and Customer Status, with the type designation MT 9xx. Table 9 Cash Management and Customer Status
SWIFT Message Type
Description
MT 900
Confirmation of Debit
MT 910
Confirmation of Credit
MT 920
Request Message
MT 935
Rate Change Advice
MT 940
Customer Statement Message
MT 941
Balance Report
MT 942
Interim Transaction Report
MT 950
Statement Message
MT 970
Netting Statement
MT 971
Netting Balance Report
MT 972
Netting Interim Statement
MT 973
Netting Request Message
MT 985
Status Inquiry
MT 986
Status Report
MT 990
Advice of Charges, Interest and Other Adjustments
MT 991
Request for Payment of Charges, Interest and Other Expenses
MT 992
Request for Cancellation
MT 995
Queries
MT 996
Answers
MT 998
Proprietary Message
MT 999
Free Format Message
Validation Collaborations
The table below lists the Validation Collaboration. Validation Collaboration Definitions are provided for many key SWIFT message types. Table 10 Common Group Messages
Validation Collaborations
Validates OTD/Message Type
ValidateMt_101
MT_101 – Request for Transfer
ValidateMt_103_STP
MT_103_STP – Single Customer Credit Transfer
ValidateMt_202
MT_202 – General Financial Institution Transfer
ValidateMt_300
MT_300 – Foreign Exchange Confirmation
ValidateMt_500
MT_500 — Instruction to Register
ValidateMT_502
MT_502 — Order to Buy or Sell
ValidateMt_502_FUNDS
MT_502_FUNDS – Order to Buy or Sell (FUNDS)
ValidateMt_508
MT_508 — Intra-Position Advice
ValidateMt_509
MT_509 — Trade Status Mesage
ValidateMt_513
MT_513 — Client Advice Execution
ValidateMt_515
MT_515 — Client Confirmation of Purchase or Sell
ValidateMt_515_FUNDS
MT_515_FUNDS – Client Confirmation of Purchase or Sale (FUNDS)
ValidateMt_517
MT_517 — Trade Confirmation Affirmation
ValidateMt_518
MT_518 — Market Side Security Trade
ValidateMt_527
MT_527 — Tri-party Collateral Instruction
ValidateMt_535
MT_535 – Statement of Holdings
ValidateMt_536
MT_536 – Statement of Transactions
ValidateMt_537
MT_537 – Statement of Pending Transactions
ValidateMt_538
MT_538 — Statement of Intra-Position Advices
ValidateMt_540
MT_540 – Receive Free
ValidateMt_541
MT_541 – Receive Against Payment
ValidateMt_542
MT_542 – Deliver Free
ValidateMt_543
MT_543 – Deliver Against Payment
ValidateMt_544
MT_544 – Receive Free Confirmation
ValidateMt_545
MT_545 – Receive Against Payment Confirmation
ValidateMt_546
MT_546 – Deliver Free Confirmation
ValidateMt_547
MT_547 – Deliver Against Payment Confirmation
ValidateMt_548
MT_548 – Statement Status and Processing Advice
ValidateMt_558
MT_558 — Tri-party Collateral Status and Processing Advice
ValidateMt_559
MT_559 — Paying Agent’s Claim
ValidateMt_564
MT_564 — Corporate Action Notification
ValidateMt_565
MT_565 — Corporate Action Instruction
ValidateMt_566
MT_566 — Corporate Action Confirmation
ValidateMt_567
MT_567 — Corporate Action Status and Processing Advice
ValidateMt_568
MT_568 — Corporate Action Narrative
ValidateMt_576
MT_576 — Tri-party Collateral and Exposure Statement
ValidateMt_578
MT_578 — Statement Allegement
ValidateMt_586
MT_586 — Statement of Settlement Allegement
ValidateMt_590
MT_590 — Advice of Charges, Interest and Other Adjustment
