The MT103 SWIFT message with optional fields 52a (Ordering institution) and 57a (Account with institution) was introduced in the previous article. We saw that many intermediaries are involved in the processing of that message. But the message was still on the way and has not reached his final destination yet. In this article, we will see what happens next and and how the beneficiary gets the funds.
The picture below shows the main actors and highlights some of the fields transported in the message.
The table below contains information that is highlighted in the examples provided in the SWIFT Message Reference Guide. An additional column (comments) provides further explanation on the fields to ease their understanding.
The following page provides further explanation on the Field formatting rules and Character sets used in SWIFT MT Messages. Read it to better understand the meaning of 16x, 4!c, 4*(1!n/33x), [/1!a][/34x] and so on.
Narratives and notes on this MT103 SWIFT Message
The following narrative and notes allow to get a deeper understanding of the message content. Read them carefully and if there is any question, post a comment.
Narrative and note 1 (Main purpose of this MT103 SWIFT message)
The Receiver (PNBPUS3N) of the previous MT103 SWIFT Message is now the sender. It forwards the message to the Account with Institution (OCBCSGSG) which is now the receiver. Sender (PNBPUS3N) is asking Receiver (OCBCSGSG) to credit beneficiary account (:59F:/840735-592) with the funds credited on OCBCSGSG’s account.
Narrative and note 2 (Account relationships)
- The transaction currency is USD. So PNBPUS3N is saying to OCBCSGSG: “I have credited your USD account with me. The funds are for the customer (:59F:/840735-592) that you should credit.”
- PNBPUS3N therefore provides correspondent account services to both BNPAFRPP and OCBCSGSG. BNPAFRPP and OCBCSGSG have nostro accounts in USD currency with PNBPUS3N.
Narrative and note 3 (Sender’s reference F20 and Unique End-to-end Transaction Reference)
A new sender’s reference is generated by the sender (PNBPUS3N). As the name indicates, it is a reference assigned by the Sender to unambiguously identify the message. But the End-to-end Transaction Reference has another purpose: it is used to identify the message end-to-end and once it is generated, next parties are not allowed to modify it. It is transported end to end.
Narrative and note 4 (Field 57 is not present in this SWIFT MT103 message)
The Beneficiary customer account (:59F:/840735-592) is serviced by the Account with institution (OCBCSGSG). It was field 57 in the first message, but it is now Receiver of this message. The field 57 does not need to appear anymore
Narrative and note 5 (Charges 71F and Instructed amount 33B in this SWIFT MT103 message)
The Sender of this message (PNBPUS3N) has deducted USD25 (Tag 71F) from the initial settlement amount (USD2350,). The field 33B is added to the message to convey that information. Interbank settled amount (USD2325,-) = Instructed amount – 25 USD.
Narrative and note 6 (Fields 70 and 72 in this SWIFT MT103 message)
The field 70 (remittance information) is forwarded unchanged.
The field 72 (:72:/INS/BNPAFRPP) was added to this message. It is there to inform the receiver (OCBCSGSG) about the party that instructed the sender (PNBPUS3N) to execute the transaction. Without field 72, OCBCSGSG would not know it since that information is not provided somewhere else in the message.
In addition, the Receiver (OCBCSGSG) knows that the instructor (:72:/INS/BNPAFRPP) is an intermediary since it is different from Ordering institution (BANQUE DELUBAC ET CIE).
Other articles have been written about SWIFT MT103 Message: the basic MT103 SWIFT message with mandatory fields and the MT103 SWIFT Message with optional fields 53B, 70 and 71G. Read them if necessary to get additional information and a better understanding of the MT103 SWIFT Message.