How do you communicate and coordinate with your counterparties and intermediaries in MT202 messages?

1 MT202 format

An MT202 message consists of four blocks: basic header, application header, user header, and text. The basic header identifies the sender and receiver of the message, and the message type. The application header specifies the service type, the priority, and the delivery monitoring. The user header contains optional fields for additional information, such as message reference or validation. The text block contains the actual content of the message, which is divided into numbered fields with specific formats and codes.

2 MT202 fields

The text block of an MT202 message contains several essential fields, such as the Sender's Reference, which is a unique identifier for the message, assigned by the sender. The optional Related Reference field links the message to a previous MT202 or MT103 message. The Value Date, Currency Code, and Amount field specifies the date, currency, and amount of the funds transfer. Ordering Institution identifies the institution that ordered the funds transfer, Sender's Correspondent identifies the account of the sender at the intermediary bank that will execute the funds transfer, Receiver's Correspondent identifies the account of the receiver at the intermediary bank that will receive the funds transfer, Intermediary identifies an optional intermediary bank that will facilitate the funds transfer, Account With Institution identifies the final beneficiary bank that will credit the funds to the receiver, and Beneficiary identifies the final beneficiary of the funds transfer. Additionally, Sender to Receiver Information contains optional information for the receiver or intermediary banks.

3 MT202 rules

When sending or receiving MT202 messages, there are some rules and best practices that you should follow. SWIFT codes should be used instead of names and addresses for more accuracy and security. Additionally, the Related Reference field can be used to link the MT202 message to a previous MT103 message in order to avoid duplication or confusion. The Sender to Receiver Information field should provide clear and concise information for the receiver or intermediary banks, such as the purpose of payment, charges details, or contact details. It is important to note that the MT202 message should not be used for customer payments, as it is designed for interbank transfers only. Instead, use the MT103 message which has more fields and options for customer payments. Furthermore, the MT202 message should not be used for cover payments, as it may expose you to operational, regulatory, or reputational risks. In this case, use the MT202 COV message which has additional fields and codes for cover payments.

4 MT202 security

It is essential to ensure that your MT202 messages are secure and compliant with the SWIFT standards and policies. To do this, use the SWIFT network and services for sending and receiving messages as they provide a secure, reliable, and efficient environment. Additionally, you should employ the SWIFT authentication and encryption mechanisms to protect your MT202 messages from unauthorized access or modification. Validation and verification tools should also be used to check the accuracy of your MT202 messages before sending or after receiving them. Furthermore, you can use the SWIFT reporting and monitoring tools to track and analyze your MT202 messages, as well as identify any issues or anomalies. Finally, use the SWIFT sanctions screening and compliance services to guarantee that your MT202 messages don't violate any sanctions or regulations.

5 MT202 benefits

Utilizing MT202 messages for interbank funds transfers can bring several advantages, such as speed and convenience, as well as accuracy and clarity. Additionally, you can benefit from transparency and traceability with unique identifiers and references for your MT202 messages. Moreover, there is flexibility and interoperability with different options and fields for your MT202 messages, as well as security and compliance with secure and compliant channels and services.