Swift MT 760 and MT 799, the Real Story
If you have been in the private placement business for a while, you probably know that there are plenty of acronyms associated with trade programs. As someone new to the business, you may hear phrases like: “MTN”, “BG”, “SBLC”, “PPP”, “DTC”, “CIS”, “POF”, and say, “what the heck are they talking about”? Well, though it is good to know private placement lingo, cool sounding terms do NOT close deals. If you want to protect yourself and succeed in private placement, you MUST understand the 2 most important acronyms of all, the “MT 760” and “MT 799”.
Whether you are a client, broker, consultant, or even just a beginner, the MT 760 and MT 799 are two terms that are critical to learn inside and out!. Many times, if you speak to brokers who claim to have trade programs, you can tell if their investment is real by asking just one question, “Explain the MT 760 and MT 799, what are the risks and fees?” If you get an answer that sounds similar to the explanation we give below, then you may want to dig a little deeper! If you don’t, recognize that these people are less educated than they claim, and may not be the best option. First things first, let’s explain the definition and application of these terms in the modern day private placement business.
The MT 799 is a swift message used between banks to communicate in written form, and is usually referred to as “pre-advice”. For example, Bank “A” may send a MT 799 to Bank “B” stating: “We confirm “XXX” amount on deposit and are ready to block this amount via MT 760 in favor of account “XXX” at your bank. Please confirm readiness and receipt.” Typically, the MT 799 will be needed directly before the MT 760 is issued, and there may be small fees. Despite what most brokers may claim, the MT 799 is NOT used as collateral,and can NOT be used to enter a private placement program. Now that we know about the MT 799, let’s take a look at it’s cousin, the Swift MT 760.
The MT 760 is a swift message used to block funds in favor of someone other than the owner, collateralizing the asset via this message, while allowing for loans and liens against it. For example, most private placements require the investor to send a MT 760 to the trader’s account, allowing the trader to use this swift as a collateral guarantee for their bank. Again, despite what many brokers may claim, this is NOT everything you need to know about the MT 760. Now that you do know the definitions and applications, let’s cover the key points no one ever brings up about the MT 760: the FEES, and the RISKS…
First and foremost, the fees for blocking a large amount of funds via MT 760 can be more than you would expect. In most cases, your bank will charge 1-2% of the value being blocked for this service. For example, on a 100M bank instrument this can be 1-2M that the owner must come out of their pocket with, unless they have a special relationship with their bank. You may say to yourself, “Wow, that is a lot to spend on fees for something I’m not sure will work”! Well, even more importantly, let’s take a look at the risks if you did move forward.
If you complete the MT 760 and pay the fees, you should observe everything very closely from that point on. Once the MT 760 has hit the account of the trader, the line of credit should become available within 72 hours. At that time, the trader should be able to make their first bank instrument purchase, and give you a DEFINITE TIMELINE for your first profit disbursement. You may say, “Why do I need to watch this process so closely?” Well, here is the part that most brokers don’t tell their clients…
When blocked in someone’s favor, the MT 760 collateralizes assets in the form of a swift guarantee, and by doing so, allows the beneficiary to draw credit against it. This means, if the loan to the “trader” was defaulted on, the bank would seize the collateral and you would be out of your money! Though this scenario is possible, I would consider it rare for two reasons… In today’s world, no bank will loan Millions of dollars to someone they haven’t vetted, no matter what collateral is on hand. Second, the MT 760 is quite rare, and this usually draws attention to the beneficiary of the swift.
In summary, the MT 760 can be safe, or it can blow up in your face. As always, the key is having a real trader and most importantly, getting your payments as scheduled. If the trader makes a statement about yields and a time line, they must ALWAYS keep in line with their promises. Over the THOUSANDS of transactions we have been involved in, the only ones that have closed have been smooth from the start, with NO hiccups.
Remember, both RISK and FEES are a part of blocking funds via MT 760!!!! In addition, by understanding the MT 760 and MT 799, you can clear out the TIME WASTING brokers from your network, and work MORE EFFICIENTLY towards your goals.
Let’s face it, very few people know as much as you do after reading this article. Use it to your advantage to qualify the private placement investments you come across, and it will make life a lot easier. Ask yourself, if someone can’t explain the MT 760 and MT 799 in thorough detail, do you think they have ever closed a deal? Then ask yourself, do I want to risk Millions with someone that has NEVER been successful? It’s not hard to see, education is the key!
InsideTrade LLC Staff
(412) 235-2855


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Can I use blocked funds that I leased, and then enter private placement with them? I am guessing if they are already blocked, I cant block them again? Can someone clear this up.
MT760 is as good as a bank guarantee or cash in your account.
If the issuing bank is of top class rating there shouldnt be any problem for your recipient bank to allow you to monitize it at up to 90% of the value.
Hence, MT760 requirement is for "trader/platform" that DO NOT have a credit line of their own.
Mostly required by swindlers, fraudsters and wannabee trader looking for a free ride.
Anyone who receives a MT760 can be the trader themselve.. using the monitized yield to conduct a buy/sell trade in their name and NOT the investors'. All profits will be pocketed by them, or majority of it, leaving peanuts for the investor.
The chances for default is high. The chances of investor getting any profit is extremely small.
99.99% of MT760s have been plundered leaving the investor without recourse.
MT760 is still used by legitimate traders when, for instance, client's bank is not of good rating and client is not willing to move the funds to his own account in trading bank for internal blocking. On the other hand, if trader is successful and stands behind his words, he will pay for the SWIFT. This is at least what our trader is doing, if needed, though currently he's using mostly MT799 confirming an Administrative Hold which is reserving funds in favor of CLIENT who, in his turn, commits it to trader contractually . Such arrangement, though easier and more comfortable for client, is definitely a higher risk for trader who needs to put up 2 times of his own money to start trading. That's why our trader's attorneys have to do a thorough due diligence on clients and their funds/assets even before the compliance.
[...] needed. In many cases, this is a letter from the investor’s bank confirming they will send a MT 760 upon the request of the client. Without this letter, most real platforms won’t even entertain [...]
MT 760 means something different for every person you talk to because most dont even know what they are talking about, thanks for the great detail in the blog post
Hello,
This post has been very educational.
Few questions if anyone can reply :
I understand that MT760 costs about 0.05-1.5%.
1)What are the costs for sending Mt799??
2)MT799 is generally construed as verification of Proof of funds.
Can MT799 be used for sending verification of Bank instruments? or is it only pertaining to cash funds?
Thanks,
Cost for 799 can be anywhere between 20k & 60K depending on Bank as some charge more or less & some Banks dont charge anything depending on your relationship with your Bank and ofcourse the message being relayed….in retospect its like you & I communicating on skype to one another and relaying documents (Bank Instrument), to have authenticated which you (the Issuing Bank), gave to a 3rd party (Broker or Agent or Owner), to give to me (the receiving Bank), and then me going straight to you to ask if what I had received (from owner broker agent), is real & that it did in fact come (issued), from you originally. Example only.
MT799 is what it is…a SWIFT Code utilized under interbank process by which messages are sent Bank Officer to Bank Officer for what ever reason as it relates to their clients purpose for having a 799 sent.
Monar, you said your traders, are you and have you seen/involved in a REAL trade group or trader that produced REAL returns? If so how can we chat? I have many many clients that have been burned and just want a few simple answers to some detailed questions.
Thanks.
Good Day, when you have a serise client with real cash or assets, and they can follow our strature you can send a note to UEGEcomplince@gmail.com, and your contact information some one from the office will be in touch with you.
Leave your response!
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