SWIFT MT Messages: What Businesses Must Understand

What Are SWIFT Messages?

SWIFT Messaging System Overview

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a messaging network most banks use to securely exchange financial messages worldwide. It supports transactions, confirmations, and financial data exchange. The SWIFT messaging system makes international banking safer and faster.

Purpose of SWIFT in Global Banking

SWIFT messages in banking are important for facilitating secure and fast communication worldwide. The SWIFT network connects thousands of banks and financial organizations, allowing them to exchange payment instructions, confirm transactions, and share financial data. As a result, SWIFT is a core infrastructure element for global financial operations.

SWIFT Messages vs. SWIFT Payments

The term “SWIFT messages” refers to the specific types of messages used within the SWIFT network. SWIFT payments describe payment instructions transmitted via SWIFT messages, while the actual funds move through correspondent accounts. 

SWIFT Message Types (MT Series)

Categories of SWIFT MT Messages (MT0–MT9)

SWIFT Messages are grouped into categories based on the type of financial activity they support. These categories range from MT0 through MT9 and describe the purpose of the Messages used for international banking communications. Each category contains all of the types that support a particular business process, allowing for consistency, standardisation and clarity in the use of these messages across the SWIFT network. The list below sets out the main categories of SWIFT MT Message Types.

MT0 – System Messages

MT1 – Customer Payments and Cheques

MT2 – Financial Institution Transfers

MT3 – Treasury Markets

MT4 – Collections and Cash Letters

MT5 – Securities Markets

MT6 – Treasury Markets – Metals and Syndications

MT7 – Documentary Credits and Guarantees

MT8 – Traveller’s Cheques

MT9 – Cash Management and Customer Status

Types of SWIFT Messages Used in Payments

There are various types of SWIFT MT messages, but the most commonly used for payment purposes are MT103 and MT202 messages. Both of them help facilitate payment to/from customers. Additionally there are several other types related to payments, for example the MT202 COV (cover) is utilized by banks for transferring funds from one financial institution to another without providing intermediary banks with customer-specific  information.

SWIFT Payment Messages (Most Common MT Codes)

MT103 – Customer Transfer

The MT103 is a standardised payment confirmation that can be issued by any bank or financial institution. It contains comprehensive transaction details, including the sender, intermediary and receiving institutions, the amount, applicable fees etc. While banks typically generate MT103 messages automatically for customer credit transfers, they can usually provide one upon request, often subject to an additional charge.

MT202 / MT202 COV – Bank-to-Bank Transfers

MT202 is a message used for bank-to-bank fund transfers and interbank settlements without including customer-level payment details. MT202 COV is a specific variant used alongside

MT103 customer payment instructions to move funds between financial institutions. Together, these messages enable secure, traceable correspondent banking flows in international payments.

MT940 / MT950 – Statements and Confirmations

MT940 is a statement message sent by an account-servicing institution to an authorised financial institution, providing detailed information on all transactions booked to an account, typically in the form of a daily account statement.

MT950 is sent by the account-servicing institution to the account owner or its bank.

Both message types are commonly used for daily reporting.

Other Frequently Used MT Messages

There are several other important SWIFT MT messages, including:

MT101 - used by corporations and banks (on behalf of their customers) to initiate a customer credit transfer. In simple words, MT101 may result in one or more MT103 messages being generated by the bank.

MT200 - used by banks to instruct the movement of funds between financial institutions, most commonly for cash concentration or liquidity management purposes.

MT320 - this message is exchanged by or on behalf of the institutions or corporate, who have agreed to a fixed term loan/deposit contract.

SWIFT Message Format Specifications

Structure of a SWIFT MT Message

A SWIFT message consists of several blocks and fields that identify the purpose of the message and provide information such as the sending and receiving banks, the amount of money being sent, the date, etc.

Mandatory and Optional Blocks

Most SWIFT messages have blocks (1 through 5) which contain both mandatory and optional fields. Blocks 1 and 2 are mandatory for all SWIFT MT messages. The blocks depend upon what type of transaction.

Block 1: Basic header. This block contains the general information that identifies the message, and some additional control information.

Block 2: Application header contains information that is specific to the application. 

Block 3: User header (optional depending on the message type).

Block 4: Text block containing the business data of the message.

Block 5: Trailers indicate special circumstances that relate to message handling or contain security information.

SWIFT Network Validation Rules

Each SWIFT message format has its own validation rules. They include verifying the accuracy or completeness of all data contained in the file and that the message complies with SWIFT’s standards. Any message that does not comply with these rules will be rejected and will not be sent through the SWIFT network. 

SWIFT Message Fields Explained

Field Tags and Their Meaning

MT messages are composed of several fields to provide information about the transaction, such as the amount, currency, sender, and recipient. 

Common Fields in MT103 and MT202

Typical MT103 fields include:

:20: Transaction Reference Number.

:32A: Value Date, Currency, and Amount.

:50A: Ordering Customer.

:59: Beneficiary Customer.

For MT202, you’ll typically find:

:20: Transaction Reference Number.

:21: Related Reference.

:32A: Value Date, Currency code, and Amount.

How Businesses Use SWIFT Messages

International Payments and Settlements

Businesses rely on SWIFT messages to support international payments and settlements. MT103 messages are commonly used for customer transfers, while MT202 messages support interbank settlements.

Compliance, AML and KYC Monitoring

SWIFT data is also used to support AML and KYC checks. Financial institutions analyze message content to ensure compliance with international regulations.

How SWIFT Messages Integrate With Corporate Banking

SWIFT messages are widely used in corporate banking services. For example, MT940 supports cash management reporting, while MT101 is used to initiate bulk payments such as salaries or supplier payments.

SWIFT Codes (Including M&T Bank SWIFT Code)

What a SWIFT/BIC Code Identifies

The SWIFT (BIC) codes are special identifiers assigned to banks or financial institutions in the SWIFT system. It helps in ensuring that a payment is delivered to a particular institution.

They consist of 8 or 11 characters identifying the bank, country, location, and optional branch.

How to Find a Bank’s SWIFT Code

A bank’s SWIFT code can be found on its official website, on the bank statements, or through the online SWIFT/BIC directory.

Example: M&T Bank SWIFT Code Overview

M&T Bank, headquartered in Buffalo, New York, uses the SWIFT code MANTUS33 for international wire transfers, ensuring accurate routing of cross-border payments.

SWIFT vs. Other Messaging Standards

SWIFT MT vs. ISO 20022 (MX Messages)

SWIFT is transitioning from its traditional MT messages to the new ISO 20022 standard. The new format offers improved data capacity and enhanced capabilities for financial messaging. It supports richer and more detailed information, allowing for more efficient processing.

Migration Timelines for Businesses

As the financial industry transitions to the ISO 20022 standard, businesses must update their systems to support the new format. This change will result in greater flexibility and efficiency in payment processing.

Benefits of the New MX Format

ISO 20022 improves data quality, supports automation, and simplifies regulatory reporting. These features make it more suitable for modern payment environments.

FAQ About SWIFT MT Messages

What types of SWIFT MT messages exist?

SWIFT MT messages are grouped into ten categories, covering payments, securities, trade finance, treasury, and reporting activities. 

Are SWIFT messages the same as wire transfers?

Not exactly. What are SWIFT messages? They are standardized electronic messages sent over the SWIFT network. A wire transfer, on the other hand, is the actual movement of funds.

SWIFT payment messages act as the communication layer that enables those transfers to occur securely between banks.

What information is included in a SWIFT MT103?

An MT103 includes transaction references, sender and beneficiary details, value date, currency, amount, and compliance-related data. These data elements are described through the structured tags within the swift message fields explained documentation.

How do banks verify SWIFT messages?

Verification occurs through encrypted authentication keys, validation rules, and automated compliance checks. Each institution follows swift message format specifications to ensure the message’s integrity.

Are SWIFT message formats changing with ISO 20022?

Yes. MT messages are coexisting with ISO 20022, with a gradual migration toward MX messages.