mt798_faqv2

Transaction ServicesTransaction Services

Citis Capability for SWIFT MT798Frequently Asked Questions

2 Citi Transaction Services

What is the MT798? SWIFTs Trade for Corporates, the MT798, offerscorporates the use of established interbank industrystandards in Trade Finance through structured messagesbetween corporates and banks.

MT798, also referred to as The Trade Envelope,is an authenticated message used to exchange Tradedata between corporates and member banks of theSWIFT system.

MT798 provides a multibank gateway through a centralizedand secure channel for customers working with two ormore banks.

What types of Trade data can be exchanged using MT798? The MT798 message allows for the exchange of:

Import Letters of Credit

Export Letters of Credit

Guarantees/Standby Letters of Credit

Related sub-messages (Existing category 7 messages)

Trade for Corporates in theory...

MT798s

Importer Importers bank(s)

SWIFT flows FIN MT798

SWIFT flows FIN MT7xx

SWIFT flows FileAct

Exporters bank(s)

MT700Exporter

MT798s

MT798sDocuments

SWIFTNet SWIFTNet SWIFTNet

1 2 3

4

1. Importer sends Application for a Letter ofCredit (MT798) to its bank either via FINor FileAct.

2. Importers banks application extractsthe appropriate fields from the MT798,putting them into an Issue of Letter ofCredit (MT700) and sends them to theExporters bank.

3. Exporters banks application forwardsthe MT700 inside an MT798 to theExporter as an Advice of Letter of Credit.

4. Exporter sends documents via FileAct toits bank (e.g., prechecking).

3SWIFT for Corporates MT798

SWIFT MT798 Connectivity solutions for customers

Corporate ERP System

Corporates Own SWIFT

Interface

Vendor ReadySWIFTNet

Service Bureau

Third-Party Service Bureau

Corporates Own In-house

Development

Vendor ReadyTrade Portal

Corporate Manual Access to Vendor

Ready Portal

Corporate Banking Relations

Citibank

Citis InternalTrade System

MT798

Citi

MT798s

Receive From

Send To

Or Or

OrOr

Bank A InternalTrade System

MT798

Bank ABank A

Bank B InternalTrade System

MT798

Bank B Bank B

Flexible ConnectivityOptions

Front-OfficeTrade Application

What are the benefits to corporates of using SWIFT MT798?

Corporates can enjoy the benefits of their access toSWIFT to manage all of their Trade Finance transactionswith multiple banks on one platform.

Corporates will improve working capital through acentralized multibank view of their trade transactionsworldwide using one of the SWIFT Ready partnerapplications. For some corporates who can leverage theirSWIFT connectivity implemented for cash transactions,they will also save time and money as they move awayfrom proprietary tools and manual processes.

Allows for a single channel, centralization andstandardization while working with multiple banks.

Ensures secure and reliable connectivity between banksand corporates.

MT798 solution is Technology independent (SWIFTStandard) and Channel independent (corporates can useInternet, SWIFT or both). Corporates can use their existingsetups with banks for exchanging MT798 messages.

Corporates can enjoy this service without an additional feeto the bank.

Is MT798 the same as Bolero?


Although SWIFT MT798 and Bolero both offer a TradeMultibank solution, they have different offerings and arenot the same

Below is a side-by-side comparison of SWIFT MT798 andBolero, which helps to illustrate the ways in which thethe two functionalities differ

Swift MT798 Bolero

The new SWIFT Message Type 798 is an envelope in which most of the standard trade 700 messages can be enclosed. For example, a 700-message issuance of a Documentary LC can be enclosed in an MT798. These messages utilize the SWIFT communication flow used today by banks for Trade, Cash and Securities.

Bolero is an independent vendor with a hosted solution. Product offerings are Import/Export Letters of Credit and Guarantees/Standby Letters of Credit.

SWIFT is a bank-owned platform and bank usage fees are based on number of messages.

Bolero markets to Corporate clients. Banks pay fees to access and communicate with these clients.

Corporates would typically need a third party vendor application and SWIFT access to initiate and receive the MT798 messages.

Both Corporates and Banks need to access the Bolero-hosted web-based portal to communicate. Participants must adhere to the Bolero Rulebook, which defines the Rules of Engagement.

SWIFT is primarily a bank-to-bank communications tool. Cash messages have included the Corporate/Bank flows. Trade message flows with Corporates is a newer offering.

Bolero originally began as a SWIFT initiative. Bolero is used only for Trade flows.

Corporates who currently have SWIFT cash flows with a bank may be interested in expanding to Trade. Corporates who use more than five banks for their Trade flows and have sizeable transaction flows might be good candidates.

Corporates who use more than five banks for their Trade flows and have sizeable transaction flows might be good candidates.

MT798 capable today, while others have stated that they plan to beready in the next nine to 18 months. Corporate clients are also implementing or considering the MT798.

Some banks are accessing Bolero today.

Citi is planning to have full MT798 capabilities in 2012. We would like this to be the preferred multibanking solution.

Citi has engaged with Bolero as well as other third party vendors to support the needs of our clients.

Most banks across the globe are SWIFT enabled. Some banks are


Implementation Model

The current implementation model for the corporate client assumes that either a client in-house solution or a third- party vendor will facilitate the capability.

While various vendors may be able to facilitate MT798 for corporates, the following three vendors provide Corporates with products or platforms and are currently certified by SWIFT.

oSsysi lutions for Bankingericase OBrien, Sales Executive

0 Avenue of the Americas, 5th Floor, w York, NY 10036, USA : +1 (212) 898-9460 bile: +1 (917) 684-9913 ail: [email protected] w.misys.com

an Watson ail: [email protected]

ACesh Malik ail: [email protected]

ropean Edmondson ail: [email protected]

Arlos Teixeira

ail: [email protected]

How do corporates get access to MT798?

Corporates typically need to implement MT798 capabilitieseither through in-house development or a vendor productto send and receive the MT798 messages.

Moreover, corporates must be connected to SWIFT networksince MT798 is a standard SWIFT message.


Implementation Model

1. lG obal Trade CorporationolG bal

Jacob Katsman, CEO 2727 Steeles Ave. West, 4th Floor Toronto, ON, Canada, M3J 3G9 Tel: +1 (416) 661-8520 Mobile: +1 (416) 627-8520 E-mail: [email protected] Website: www.globaltradecorp.com

2. detaroprocnI snoituloS elcanniP AmericasSonia Thomas760 Route 10 West, Suite 101 Whippany, NJ 07981, USA Tel: +1 (973) 884-1020 Fax: +1 (973) 258-1771 E-mail: [email protected] www.psi-nj.com

EMEA and APACJohn Nash 91 Burnham Lane Slough Berkshire, SL1 6JY United Kingdom Tel: +44 7587 088 049 E-mail: [email protected] www.psi-nj.com

3. oS sysiM lutions for BankingAmericasSteve OBrien, Sales Executive 1180 Avenue of the Americas, 5th Floor, New York, NY 10036, USA Tel: +1 (212) 898-9460 Mobile: +1 (917) 684-9913 E-mail: [email protected] www.misys.com

Bryan Watson E-mail: [email protected]

APACJitesh Malik E-mail: [email protected]

EuropeBrian Edmondson E-mail: [email protected]

MEACarlos Teixeira E-mail: [email protected]

What MT798 messages can corporates (Corporate-to-Bank)

(C2B) Import Transaction Flow: Application for issuance of Documentary Credit

(MT798/770/700/701)

Request for amendment of Documentary Credit

(MT798/772/707)

Response to Advice of Discrepancy

(MT798/749)

(C2B) Export Transaction Flow: Advice of Acceptance/Refusal of Amendment

(MT798/735)

Request for Transfer of a Documentary Credit

(C2B) Guarantee/Standby Letter of Credit Transaction Flow: Application for issuance of Guarantee/Standby Letter

of Credit

(MT798/761 or 784 & MT798/760)

Request for amendment of Guarantee/Standby Letter of Credit

(MT798/763 or 786 & MT798/767)

Response to extend or pay Guarantee/Standby Letter of Credit

(MT798/778)

Claim for payment under Guarantee/Standby Letter of Credit

(MT798/712)

Request for Guarantee/Standby Letter of Credit Reduction/Release

( T798/783)

(C2B) Common Group Transaction Flow: Free Format Message

(MT798/788/799)

M ( T798/722)

send to bank?

What MT798 messages can corporates expect

(B2C) Import Transaction Flow: Notification of issuance of Documentary Credit

(MT798/771/700/701)

Notification of amendment of Documentary Credit

(MT798/773/707)

Notification of Acceptance/Refusal of Amendment

(MT798/736)

Advice of Discrepancy

(MT798/748/750)

Notification of Advice of Payment/Acceptance/Negotiation

(MT798/753/754)

Notification of Advice of Discharge

(MT798/731/732)

Notification of Advice of Refusal

(MT798/733/734)

to receive from banks? (Bank-to-Corporate)

Notification of Advice of Reimbursement or Payment

(MT798/755/756)

Settlement of Import Documentary Credit

(MT798/757)

(B2C) Export Transaction Flow: Advice of Documentary Credit

)107/007/477/897TM(

Advice of Amendment of Documentary Credit

)707/677/897TM(

Advice of Third Bank Documentary Credit

)117/017/087/897TM(

Response to Documentary Credit presentation

)737/897TM(

Notification of authorization to Pay, Accept or Negotiate

)257/157/897TM(

M


Notification of Advice of Payment/Acceptance/Negotiation

(MT798/753/754)

Notification of Advice of Discharge

(MT798/731/732)

Notification of Advice of Refusal

(MT798/733/734)

Notification of Advice of Reimbursement or Payment

(MT798/755/756)

Advice of Transfer Documentary Credit

(MT798/782)

Settlement of Export Documentary Credit

(MT798/758)

(B2C) Guarantee/Standby Letter of Credit Transaction Flow: Notification of Guarantee/Standby Letter of Credit

)067/897TM & 587 ro 267/897TM(

Notification of amendment of Guarantee/Standby Letter of Credit

)767/897TM & 687 ro 467/897TM(

Advice of issued Guarantee/Standby Letter of Credit

)067/897TM & 647 ro 547/897TM(

Advice of amended Guarantee/Standby Letter of Credit

(MT798/743 or 744 & MT798/767)

Query to extend or pay Guarantee/Standby Letter of Credit

)777/897TM(

Acknowledgment of claim for payment under Guarantee/Standby Letter of Credit

)417/897TM(

Notification of claim for payment of Guarantee/Standby Letter of Credit

)977/897TM(

Settlement of Guarantee/Standby Letter of Credit claim for payment and/or charges

)187/897TM(

Advice of Guarantee/Standby Letter of Credit Reduction or Release

)967/667/897TM(

(B2C) Common Group Transaction Flow: Free Format Message

)997/987/897TM(

For more information, please contact your local Trade representative or Fran Martell at [email protected]

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