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Citis Capability for SWIFT MT798

Frequently Asked Questions

Transaction Services
Transaction
Services

Citi Transaction Services

What is the MT798?

What types of Trade data can


be exchanged using MT798?

SWIFTs Trade for Corporates, the MT798, offers


corporates the use of established interbank industry
standards in Trade Finance through structured messages
between corporates and banks.

The MT798 message allows for the exchange of:


Import Letters of Credit

MT798, also referred to as The Trade Envelope,


is an authenticated message used to exchange Trade
data between corporates and member banks of the
SWIFT system.

Export Letters of Credit


Guarantees/Standby Letters of Credit
Related sub-messages (Existing category 7 messages)

MT798 provides a multibank gateway through a centralized


and secure channel for customers working with two or
more banks.

Trade for Corporates in theory...


SWIFT flows FIN MT798
SWIFT flows FIN MT7xx
SWIFT flows FileAct

MT798s

MT798s

SWIFTNet

SWIFTNet

SWIFTNet

Importer

Importers
bank(s)

MT700

Exporters
bank(s)

1. Importer sends Application for a Letter of


Credit (MT798) to its bank either via FIN
or FileAct.

3. Exporters banks application forwards


the MT700 inside an MT798 to the
Exporter as an Advice of Letter of Credit.

2. Importers banks application extracts


the appropriate fields from the MT798,
putting them into an Issue of Letter of
Credit (MT700) and sends them to the
Exporters bank.

4. Exporter sends documents via FileAct to


its bank (e.g., prechecking).

Exporter

MT798s
Documents

SWIFT for Corporates MT798

What are the benefits to


corporates of using SWIFT
MT798?
Corporates can enjoy the benefits of their access to
SWIFT to manage all of their Trade Finance transactions
with multiple banks on one platform.
Corporates will improve working capital through a
centralized multibank view of their trade transactions
worldwide using one of the SWIFT Ready partner
applications. For some corporates who can leverage their
SWIFT connectivity implemented for cash transactions,
they will also save time and money as they move away
from proprietary tools and manual processes.

Ensures secure and reliable connectivity between banks


and corporates.
MT798 solution is Technology independent (SWIFT
Standard) and Channel independent (corporates can use
Internet, SWIFT or both). Corporates can use their existing
setups with banks for exchanging MT798 messages.
Corporates can enjoy this service without an additional fee
to the bank.

Allows for a single channel, centralization and


standardization while working with multiple banks.

SWIFT
MT798 Connectivity solutions for customers

Corporate
ERP System

Front-Office
Trade Application

Flexible Connectivity
Options

Corporates Own
In-house
Development

Corporates
Own SWIFT
Interface

Or

Or

Corporate Banking
Relations

Citibank

Citi
MT798

Citis Internal
Trade System
Receive
From
Bank A

Vendor Ready
Trade Portal

Vendor Ready
SWIFTNet
Service Bureau

Bank A

MT798
MT798s

Bank A Internal
Trade System

Send To

Or

Or

Bank B

Bank B

MT798

Corporate Manual
Access to Vendor
Ready Portal

Third-Party
Service Bureau

Bank B Internal
Trade System

Citi Transaction Services

Is MT798 the same as Bolero?


Although SWIFT MT798 and Bolero both offer a Trade
Multibank solution, they have different offerings and are
not the same

Swift MT798

Below is a side-by-side comparison of SWIFT MT798 and


Bolero, which helps to illustrate the ways in which the
the two functionalities differ

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.

Most banks across the globe are SWIFT enabled. Some banks are
MT798 capable today, while others have stated that they plan to be
ready 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.

4
SWIFT
for Corporates MT798

Citi Transaction Services


5

How do corporates get access


to MT798?
Corporates typically need to implement MT798 capabilities
either through in-house development or a vendor product
to send and receive the MT798 messages.

Moreover, corporates must be connected to SWIFT network


since MT798 is a standard SWIFT message.

Implementation Model
The current implementation model for the corporate client
assumes that either a client in-house solution or a thirdparty 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.

1. Global Trade Corporation


Global
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: katsman@globaltradecorp.com
Website: www.globaltradecorp.com

3. Misys Solutions for Banking


ericas
Americas
e OBrien, Sales Executive
Steve
0 Avenue of the Americas, 5th Floor,
1180
w York, NY 10036, USA
New
Tel:: +1 (212) 898-9460
bile: +1 (917) 684-9913
Mobile:
ail: steven.obrien@misys.com
E-mail:
w.misys.com
www.misys.com
an Watson
Bryan
ail: bryan.watson@misys.com
E-mail:

2. Pinnacle Solutions Incorporated


Americas
Sonia Thomas
760 Route 10 West, Suite 101
Whippany, NJ 07981, USA
Tel: +1 (973) 884-1020
Fax: +1 (973) 258-1771
E-mail: info@psi-nj.com
www.psi-nj.com

EMEA and APAC


John Nash
91 Burnham Lane Slough
Berkshire, SL1 6JY United Kingdom
Tel: +44 7587 088 049
E-mail: john.nash@psi-nj.com
www.psi-nj.com

AC
APAC
esh Malik
Jitesh
ail: jitesh.malik@misys.com
E-mail:
rope
Europe
an Edmondson
Brian
ail: brian.edmondson@misys.com
E-mail:
A
MEA
rlos Teixeira
Carlos
ail: carlos.teixeira@misys.com
E-mail:

Citi Transaction Services

What MT798 messages can corporates


send to bank? (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
(MT798/722)
(C2B) Common Group Transaction Flow:
Free Format Message
(MT798/788/799)

(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
(MT798/783)

What MT798 messages can corporates expect


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

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
(MT 798/ 774/ 700/ 701)
Advice of Amendment of Documentary Credit
(MT 798/ 776/ 707)
Advice of Third Bank Documentary Credit
(MT 798/ 780/ 710/ 711)
Response to Documentary Credit presentation
(MT 798/ 737)
Notification of authorization to Pay, Accept or Negotiate
(MT 798/ 751/ 752)

SWIFT for Corporates MT798

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

Advice of amended Guarantee/Standby Letter of Credit


(MT798/743 or 744 & MT798/767)
Query to extend or pay Guarantee/Standby Letter of Credit
(MT 798/ 777)
Acknowledgment of claim for payment under Guarantee/
Standby Letter of Credit
(MT 798/ 714)
Notification of claim for payment of Guarantee/Standby
Letter of Credit
(MT 798/ 779)
Settlement of Guarantee/Standby Letter of Credit claim for
payment and/or charges
(MT 798/ 781)
Advice of Guarantee/Standby Letter of Credit Reduction
or Release
(MT 798/ 766/ 769)

(MT 798/ 762 or 785 & MT 798/ 760)


Notification of amendment of Guarantee/Standby Letter
of Credit
(MT 798/ 76 4 or 786 & MT 798/ 767)
Advice of issued Guarantee/Standby Letter of Credit
(MT 798/ 745 or 746 & MT 798/ 760)

(B2C) Common Group Transaction Flow:


Free Format Message
(MT 798/ 789/ 799)
For more information, please contact your local Trade
representative or Fran Martell at Fran.Martell@citi.com

Citi Transaction Services


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