No, an MT799 is generally not transferable as it is not a financial instrument used for the direct transfer of funds or a promise to do so. It serves a different purpose in interbank communication.
Understanding SWIFT MT799 Messages
A SWIFT MT799 message is a type of secure communication sent between banks using the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network. These messages are free-format, authenticated communications that banks use to relay information securely to other banks.
Unlike letters of credit, bank guarantees, or other negotiable instruments, an MT799 does not represent a financial obligation that can be traded, assigned, or transferred to another party. Its primary function is informational, serving as a preliminary message or a confirmation of certain banking details.
What is the Purpose of an MT799?
The core utility of an MT799 lies in its ability to securely communicate non-financial information between financial institutions. Its most common applications include:
- Proof of Funds (POF): Banks often use an MT799 to confirm that a client holds sufficient funds in their account to cover a potential transaction. This provides reassurance to a counterparty without directly earmarking or blocking funds.
- Proof of Deposit (POD): Similar to POF, it can verify that a deposit has been made.
- Pre-advice or Preliminary Communication: It can be used to open lines of communication or facilitate initial due diligence between banks regarding a client's financial standing before more binding financial instruments (like an MT700 for a Letter of Credit) are issued.
- Confirmation of Account Details: While less common, it can be used for general authenticated communication regarding account status or verification.
Why an MT799 is Not a Transferable Instrument
The fundamental reason an MT799 is not transferable is rooted in its nature as an informational message, not a value-carrying or commitment-bearing document.
Consider the following distinctions:
| What an MT799 Is | What an MT799 Is NOT |
|---|---|
| A secure, authenticated communication between banks | Used for directly transferring funds |
| An informational message for bank-to-bank use | A promise to transfer funds |
| Primarily used for showing proof of funds or deposits | A financial instrument that can be traded or assigned |
| A preliminary step in some transactions | A guarantee of payment on its own |
Since an MT799 does not represent an actual transfer of funds or a contractual promise to do so, it cannot be bought, sold, assigned, or otherwise transferred like a negotiable financial instrument. It simply conveys information about the existence of funds or deposits, which can then facilitate other, separate financial arrangements.
