The SWIFT MT940 is called Customer Statement Message. It is basically an account statement and therefore provide detailed information about all entries booked to an account. It can be sent:
- either directly to the account owner – In the SWIFT world account owners are banks or corporations.
- or to financial institution authorised by account owner to receive it – The authorised financial institution can also play the role of a concentrating financial institution for an account owner. It then receives SWIFT MT940 from various banks and delivers them to the account owner.
You can read the SWIFT MT940 message specifications here. In this article, we will consider an example of SWIFT MT940 and analyze the content. It is a SWIFT MT940 sent to an account owner which is a bank, in our case Citibank New York that has a correspondent account with BNP Paribas Paris as we see on the picture below.
On the table below, you see the fields that are transported in the SWIFT MT940 message sent by BNPP to Citi. Additional comments are provided to ease the understanding of each field and what it is used for. We have three entries in the statement: two debit entries and one credit entry.
Read this page on the SWIFT formatting rules and Character sets of MT Messages to get additional information and understand what 16x, 35x and the format of the field options mean.
Narratives and notes on this SWIFT MT940 message
Below we provide some narratives and notes about the SWIFT MT940 statement message to better understand its meaning and content. Read them and review the table above to grasp the details. You can also check the SWIFT MT940 format specifications.
Narrative and note 1 (Main purpose of this SWIFT MT940)
With this message, BNP Paribas (BNPAFRPP) is providing an account statement to Citibank (CITIUS33) with all the debit and credit entries booked on the account. Note that the currency of the account is EUR and so the currency of the transactions (entries).
Narrative and note 2 (Information to Account Owner in the SWIFT MT940 )
The SWIFT MT94x contains an optional field called Information to Account Owner (F86) that is not available in the SWIFT MT950. It can be repeated along with each statement line and provides additional information about the related entry and must be passed on to the account owner.
Narrative and note 3 (The SWIFT MT940 can theoretically be used as a cover)
Citibank (CITIUS33) is informed with the statement that its account has been credited. If the credit is related to a MT202 COV, the related reference will be provided in the subfield 7 of the related statement line. See previous article on the SWIFT MT950 message.
With the analysis of SWIFT MT950 in the previous article and SWIFT MT940 in this one, we start to understand how account statements are formatted and structured in the SWIFT world. But we haven’t spoken at all about the available balances in the SWIFT MT940: closing available balance and forward available balance. It is important to understand what they are. Therefore it will be the topic of the next article.