This is the third and last article about a SWIFT MT103 serial payment (so settled via the serial method). We already studied the cover method and how it is used to settle that payment. Read the series of articles to which I refer you in this article if you want to learn more about the cover method.
When the transaction is settled with the serial method, the payment moves from one party to the next in the payment chain until it reaches the beneficiary bank. We examined the content of the first MT103 message in details in this article. The second MT103 message was considered in the previous article. Now we will look at the third SWIFT MT103 serial payment exchanged between Bank of New York Mellon and Santander and its meaning. The following picture depicts the different parties involved and their roles in the third MT103.
The table below contains the fields that are transported in the third SWIFT MT103 serial payment. An additional column (comments) provides further explanation, so that it is easy to understand each field and what it is used for.
Narratives and notes on this SWIFT MT103 serial payment
As usual, we should always consider each SWIFT MT103 serial payment carefully. They seem to be the same. But there are differences. The following narrative and notes allow to get a deeper understanding of the message content.
Narrative and note 1 (Main purpose of this SWIFT MT103 serial payment)
The Sender (IRVTUS3N) is informing the Receiver (BSCHESMM) that his account has been credited and funds are for the beneficiary customer. So the receiver should credit the beneficiary account with the funds received. Do you note the difference between this message and the previous ones? In the previous one, the sender was asking the beneficiary to debit his account and credit someone else’s account. So we see that an incoming MT103 has a different meaning for a bank when it is received from its correspondent.
Narrative and note 2 (Fields 53a, 54a are not in the SWIFT MT103 serial payment)
Fields 53A and 54A (Sender’s and receiver’s correspondents) are not present. So we are not going through any correspondent. This means IRVTUS3N has an account relationship with BSCHESMM. Serial messages do not contain F53 and F54.
Narrative and note 3 (Ordering and account with institution in this SWIFT MT103 serial payment)
The ordering institution (52A) is provided in this message. That means the ordering customer is not customer of the Sender, IRVTUS3N . The sender kept the field 52a in the message (It was added by PNBPUS3N), so that the receiver is aware of this.
Now the message reached BSCHESMM, which was the account with institution in previous messages. The Beneficiary customer account (:59:/ES6300491800132710387658) is now held by the receiver (BSCHESMM). So no need to provide a field 57a anymore since the beneficiary customer is customer of the receiver (BSCHESMM).
Narrative and note 4 (Details of charges in this SWIFT MT103 serial payment)
Details of charges (71A) is SHA. The charges are shared between Ordering and beneficiary customer. Sender pays charges to ordering bank. Beneficiary pays to receiving and other intermediary banks.
Another field 71F was added to this message (:71F:USD22), so that it now contains two fields 71F (:71F:USD20 and :71F:USD22). The sender IRVTUS3N is indicating to the receiver and the next party (the beneficiary) that he charged USD 22 as fees for the transaction processing. Note that Interbank Settled Amount (USD367532,90) = Instructed Amount (:33B:USD367574,90) – first Sender’s Charges (USD20,) – second Sender’s Charges (USD22,). In this case, the sender must also provide the optional instructed amount field.
This ends our analysis of the third MT103 serial payment. Isn’t fascinating to see how much we say about these messages each time? The next articles will be about the SWIFT MT101, another key message in the SWIFT world. So stay tuned !!!