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Check your understanding
Is an emailed PDF marked “SWIFT copy” the same as your bank receiving and authenticating the operative message?
Bank Channels, SWIFT and Authentication
Simple concepts first. Proper banking terminology second.
What SWIFT is
SWIFT is a secure financial messaging network used by financial institutions. A message type tells banks how information is structured and communicated; it is not automatically the same thing as the underlying financial instrument.
Examples
MT700 is used for issuance of a documentary credit. MT760 is used for issuance of a demand guarantee or standby letter of credit. Other messages can advise, amend, reimburse or communicate related information.
Authentication
A beneficiary should distinguish an emailed PDF or “SWIFT copy” from an instrument or message actually received and authenticated through its bank. A screenshot by itself is not bank-channel authentication.
RMA and bank relationships
Banks may need appropriate SWIFT relationship arrangements and internal permissions to exchange certain traffic. The exact operational setup is bank-specific and should not be guessed from an internet procedure.
Pre-advice and free-format messages
Preliminary bank communications may be used in some transactions. They do not automatically replace the operative issuance message, and a free-format message should not be described as a different instrument simply because it contains banking language.
Remember this“I was shown a SWIFT copy” and “my bank received and authenticated the operative message” are not the same statement.
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