FAQ ABOUT SWIFT MT-760
Updated: Apr 21, 2020
Ever since the irruption of many brokers who claim to be experts on the sector, besides declaring to have contacts with alleged "platforms and/or Traders, we noticed the absolute lack of knowledge there is about banking tools such as the issuance of a SWIFT MT-760. For this reason, and to increase the awareness of the general public, we decided to create this article to explain the actual operative for issuing this type of “Guarantee”.
We will analyze what a SWIFT is, on what is based the issuance of a MT-760 as well as the emission operative.
First of all, we would like to punctuate that SWIFT is a Belgian company created in 1973.
Currently, SWIFT has advanced by leaps and bounds and nowadays more than eight thousand banks use the system daily as a tool for any commercial activity.
What is a MT-760?
The MT-760 is a kind of SWIFT message known as Guarantee that, as its name suggests, works as a bank guarantee. Therefore, it is important be warned about its danger before malicious individuals.
The investor's Bank issues a SWIFT MT-760 using an asset as base (CASH, BG, CD, MTN, etc). This asset is issued in favour of the recipient (the recipient of the MT-760). This kind of message is commonly used in the Commodities sector or in businesses such as the import or export of any product. The issuing bank uses the asset as a guarantee in favor of the client receiving the MT-760. It is also important to note that this is the classic locking option when it comes to participating in a Private Placement Program.