SWIFT MT799 (RWA) — Purpose, Application and Risk Controls

SWIFT MT799 is a free-format message type used within the SWIFT network to provide financial information or confirmations related to trade finance transactions. When issued as an RWA (Ready, Willing and Able) message, MT799 serves as a formal indication from a bank that it is prepared to support a future financial instrument, such as a Standby Letter of Credit (SBLC) or a Bank Guarantee (BG), subject to completion of due diligence and operational approval.

The MT799 RWA does not transfer funds and does not create a legally binding payment obligation. Instead, it acts as a pre-advice instrument confirming the bank’s readiness and capability to proceed with the structured transaction.

Standard Workflow:

1. Parties agree on commercial terms of the transaction.
2. The buyer requests RWA issuance from its bank.
3. The bank sends an MT799 (RWA/POF) through SWIFT to the receiving bank.
4. The receiving bank validates the message and performs KYC/AML checks.
5. Upon successful verification and final credit approval, a binding instrument (e.g., MT760) is issued.

Key Purposes of MT799 RWA

Pre-transaction assurance
Provides the counterparty with preliminary comfort that financial capacity is available for the intended transaction.
Proof of financial readiness
Demonstrates the bank’s institutional support for its client prior to issuance of a binding instrument (MT760).
Facilitating trade negotiations
Used when parties require banking confirmation before finalising commercial terms or formal credit undertakings.

Compliance, Controls and Risk Mitigation:
Banks handling MT799 messages must apply standard regulatory controls and internal governance standards:

• Authentication of origin
• Only messages received through SWIFT channels and verified BICs should be treated as valid.
• KYC / AML and sanctions screening
• The beneficiary, parties to the transaction, and the underlying commercial purpose must pass due diligence checks.
• Clarification of non-binding status
• The MT799 RWA should explicitly state that it does not represent a payment obligation and is contingent on further approval.
• Operational verification
• Staff must confirm the legitimacy of the sending bank using official directories/correspondent networks, not screenshots or third-party emails.

When MT799 RWA Is Appropriate:

• Early-stage confirmation of funding capacity
• Complex cross-border trade transactions
• Structured commodity finance deals
• Situations where reassurance is required without immediate collateralisation