swift connection from banks

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Phil
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swift connection from banks

Post by Phil »

Hi

Many times, with customers in African countries, my internatonal bank doesn't have any swift connection (key) with local banks from my customers. So my bank cannot handle such LCs, and we spend too much time to find a solution with another bank than mine.
Do you know which bank has the largest bank partnership worldwide? or is there any other solution to handle quickly an LC issued by a bank which has only a few bank partners in Europe?
Thanks for your help

Philippe
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picant
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Re: swift connection from banks

Post by picant »

Hi Pal,

IMHO, I think that is impossible to know the Swift correspondent of a bank. Bi bank may have thousand of so called Swift RMA, but not yet with the bank you need. Field 57 of MT700, issue of documentary credit may help you, it indicates the beneficiary's bank, the issuing bank will address the message to its own correspondent that will send MT710 to the bank indicated in a.m. Field. This will probably cost a little more and there is a true risk that the correspondent bank will disregard such indication.
We try, if we have time, to contact the bank of l/c beneficiary asking for a SWIFT RMA, many banks disagree due to internal compliance. I dare say that the messages MT7xx should be transmitted without swift RMA, a message via Swift is in any case authentic, but banks prefer it authenticated.
Ciao and comments are appreciated.
Phil
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Re: swift connection from banks

Post by Phil »

hI PICANT

Thanks for your feedback on this topic. Could you elaborate a bit more on what you mean by "there is a true risk that the correspondent bank will disregard such indication."?

Regards
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picant
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Re: swift connection from banks

Post by picant »

Hi Pal,

assuming that issuing bank indicates in field 57A a bank,the bank receiving MT700 has branches in the area of that bank , it is quite normal that the bank will contact beneficiary eluding the field 57A.
Nowadays, when a bank contacts another bank for Swift RMA,to exchange customer taylored messages as
MT700, the answer is how many transactions in one year , etc
I know that every bank is trying to on board new customers, but....
Ciao
Phil
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Re: swift connection from banks

Post by Phil »

ok thanks for your help
Mt700
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Re: swift connection from banks

Post by Mt700 »

picant wrote: Mon Nov 05, 2018 10:38 pm Hi Pal,

assuming that issuing bank indicates in field 57A a bank,the bank receiving MT700 has branches in the area of that bank , it is quite normal that the bank will contact beneficiary eluding the field 57A.
Nowadays, when a bank contacts another bank for Swift RMA,to exchange customer taylored messages as
MT700, the answer is how many transactions in one year , etc
I know that every bank is trying to on board new customers, but....
Ciao
Hello pal.

I have urgent question. The issuing bank send mt700 to advising bank, and advising bank send mt710 to receiving bank. The client of receiving bank reject mt710, they only want mt700 from issuing bank. It’s this normal? Or the receiving bank and clients are new and The receiving bank didn’t educated the client?
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picant
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Re: swift connection from banks

Post by picant »

Hi Pal,

as per Swift Guidelines the issuing bank sent MT700 to a receiving bank(RMA correspondent) the latter will send a MT710 to the bank indicated in field 57 A, indicating if add or not its confirmation. So the doc. credit may be only issued by the issuing bank or if confirmed, under liability of the MT710 sender. Receiving a MT700 the beneficiary's bank had already exchanged KYC, AML etc,
getting a MT710, the bank has to make compliance investigations about the issuing bank. IMHO, from the beneficiary's point of view it is better to get a MT710 where the issuer is a first rate bank, than obtaining a MT700 from a lower rank's bank.
I had a case of a Japanese Company that accepted MT700 only from banks over the 500 best banks in the world, and a confirmation by its japanese bank if issuing bank under said level.
Other comments appreciated.
Ciao
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