MODIFICATIONS SWIFT MESSAGE OF BANK GUARANTEES


The major change to SWIFT's Category 7 standards ends with the update of the 2020 standards, where the bank guarantee messages (MT 760 ) are updated.

 

While the 2018 standards upgrade was focused on Documentary Credits, the 2020 ones will be focused on its guarantees.

These changes will become operational on 22 November 2020.

 ✏️ MODIFICATIONS TO  MT700 - MT 759 MESSAGES.

 The main changes will focus on fields 40B (Form of Documentary Credit) and 40E (Applicable Rules), where it is no longer permitted to issue a standby letter of credit with an MT 700 message

🖥 40B  FORM OF DOCUMENTARY CREDIT

🖥  40E APPLICABLE RULES


✏️ MODIFICATIONS TO  MT 760 - MT 799 MESSAGES.

MT 760, MT 767 have significantly improved, extending the number of fields.

✅ Previously had few structured fields and one large free-format field
✅ New versions are highly detailed and structured
✅ Sequences introduced to cater for undertaking details as well as local undertaking details.

In applicable rules, they are included the UCP 600.  I think that the main reason is because those rules incorporate the Stand By letters of credit in their Article 1.

“The Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication no. 600 ("UCP") are rules that apply to any documentary credit ("credit") (including, to the extent to which they may be applicable, any standby letter of credit) when the text of the credit expressly indicates that it is subject to these rules. They are binding on all parties thereto unless expressly modified or excluded by the credit”. (Art. 1, UCP 600)

✏️ MODIFICATIONS TO MT768 AND MT 799 MESSAGES.

Field 71B changed to 71D with z-character set
Field 72 changed to 72Z with z-character set
Possibility to identify the delivery channel

 ✏️ MESSAGES 761, 765,775,785, 786 Y 787 (6 NEW MESSAGES)

MT 761 - Continuation of MT 760
MT 765 - Used to demand payment under an undertaking
MT 775 - Continuation of MT 767
MT 785 - Used to notify the beneficiary of the non-extension of the referenced undertaking
MT 786 - Used to notify the beneficiary that the demand has been refused
MT 787 - Used to indicate acceptance or rejection by the beneficiary of the amendment

✏️ NO MODIFICATIONS TO MT 79X MESSAGES

✅ The common group message types MT 790-MT799, remain unchanged

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Source: Standards Release Guide (20 December 2019)