MT103/23 "Field 23 - Instruction Code" is where the remitting bank (at the request of the remitter) puts in a simple code instructing the beneficiary's bank how to effect the payment, such as "Credit Account under Advice", "Telephone beneficiary on receipt", "Pay against passport" and such like. MT103 is a straight-through processing mechanism requiring very little manual intervention, except in simple tasks like above. You cannot send an MT103 with a condition that the beneficiary's bank must receive, say certain documents, from the beneficiary before crediting his account. Such a request will be rejected by the remitting bank, and if sent in Field 23 (which allows for only a few standard codes) will be rejected and ignored by the beneficiary's bank who will credit the beneficiary's account anyway. Transactions that involve the exchange of money for documents are documentary collections (D/A, D/P etc.) and are processed in other ways. Banks are banks, they are not lawyers or trust companies.
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What is an MT 103 and Field 23? Is this an instrument in which the provider can be leveraged. Is this an obligation to pay? If this instrument is sent to one of the major world banks is their any risk of providing such an instrument?
An MT 103 is a SWIFT banking code or message. The MT 103 typically means a wire transfer is about to be made as a form of payment.
SWIFT MT-103 is a form of SWIFT Communication. The SWIFT MT-103 transaction is used in banks as wire and telegraphic transfers to a foreign country.
Field 50 is used to indicate the name and address of the ordering party of the outgoing payment
MT103 is customer money transfer and more predominantly being used in banking field under swift modem. However field 71 is attached with charges.
TALLGOAT38
An MT 103 is an authenticated swift message whereby an orderer or ordering institution gives instructions to pay a beneficiary.
MT 103/72 is the new form of an MT 103/23. This is a conditional payment. The condition that will be in the field (72) will state that the MT103 Conditional payment is contigent upon Assay and shipping documents being provided in accordance with terms of the Contract Number
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MT 742 is sent by the claiming bank to the reimbursing bank.
57A is the field to input 'Account with Institution'. This is where the beneficiary bank code should be input. It is often with the Correspondent Bank, however, that information should be on 54A.