You are here: Home SWIFT Messages For your business MT760

MT760

MT-760

This is a Swift class 7: Bank Guarantee and Letter of Credit procedure, Procedure 60: Blocked Funds. 

The Course of Action When Your Bank Issues An MT-760:

When an MT-760 is issued, the issuing bank puts a hold on the client's funds, blocking the client from using them. The funds are then at the disposal of the person the MT-760 was issued in favor of. For this reason it is not wise to issue an MT-760 before being absolutely certain as this can mean a large financial loss for absolutely no gain. In some cases, unscrupulous traders will use the MT-760 to open a line of credit, which they then default on, leaving the issuer of the MT-760 liable. 

What A MT-760 Looks Like:

It is important to remember that an MT-760 is actually an interbank communication, so one never really sees an MT-760. You may need a special account to be able to use this procedure. 

The Cost of A MT-760:

The cost of an MT-760 varies greatly from bank to bank. Be aware however, that due to the amount of risk involved for a bank in guaranteeing payment, a MT-760 is normally fairly expensive.

How You Get A MT-760:

A MT-760 can be obtained from a bank on the international SWIFT bank network.