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What is MT304 used for?

Published in Financial Messaging 1 min read

The MT304 message is used as an advice or instruction sent by a fund manager to a custodian bank to settle a third-party foreign exchange (FX) deal.

In essence, it informs the custodian bank about a foreign exchange transaction executed with another party and instructs the bank to settle the deal according to the specified details. This ensures the appropriate funds are debited or credited to the correct accounts as per the terms of the agreement.