Clearing the confusing on MT103/23- Necessary for Diamond Transactions

In Short, the MT103 portion verifies funds are available for that specific purchase, the 23 field releases the funds once buyer and seller reach an agreement, the release is controlled by the buyer.

"Field 23 - Instruction Code" is where the remitting bank (at the request of the remitter) puts in a simple code instructing the beneficiary's bank how to effect the payment, such as "Credit Account under Advice", "Telephone beneficiary on receipt", "Pay against passport" and such like.

The authorities decided already at the end 2002 that within the year 2003 the Swift MT 799 should not be used anymore and should be replaced by the specified formats like MT 103/23 or MT 543.· The reason is that the MT 799 is a free text message of the Swift 700 series and with slightly changing of different words some restrictions, like free transferability for example could have been circumvented. Furthermore the authorities want, that banks and their branches participating in this business must assure that the bank officers and the Swift departments are properly trained.

It is of course the situation that a Free Text Message can be written by everybody, while issuing and sending a MT 103/23 or MT 543 requires a special and expensive training at the Swift academy for every bank officer. This way the participating banks/branches are controlled stronger and only highly qualified bankers can make the executions circumventing corruption inside the banks.

CONDITIONAL SWIFT VERBIAGE
S.W.I.F.T. FORMAT MT 103/FIELD 23
WE, , HEREBY PRESENT OUR IRREVOCABLE, ASSIGNABLE, TRANSFERABLE AND CALLABLE CASH BACKED S.W.I.F.T. WIRE TRANSFER MT 103/FIELD 23 CONDITIONAL IN YOUR FAVOR FOR THE ACCOUNT OF IN THE AMOUNT OF US$ ( UNITED STATES DOLLARS) FOR THE PURCHASE OF THE BANK INSTRUMENTS HEREIN DESCRIBED BY VERIFICATION OF REGISTRATION CUSIP NUMBERS CORRESPONDING WITH THE ISSUED CALLABLE CUSTODIAL SAFEKEEPING RECEIPTS WITH PHYSICAL DELIVERY TO BE MADE THEREAFTER. THIS S.W.I.F.T. IS CONDITIONAL UPON OUR ACCEPTING THE CERTIFIED BANK INVOICE.

WE HEREBY CONFIRM THAT THE FUNDS ARE GOOD, CLEAN AND CLEARED FUNDS OF NON-CRIMINAL ORIGIN AND ARE FROM A LEGAL SOURCE.

THIS IRREVOCABLE S.W.I.F.T. IS A BINDING FULLY PERFORMED DUE BILL AND IS IMMEDIATELY CALLABLE ON US FOR CASH PAYMENT AGAINST THE BANK CERTIFIED INVOICE CONDITIONAL UPON OUR ACCEPTANCE FOR THE PURCHASE AND DELIVERY OF THE BANK INSTRUMENTS SPECIFIED BELOW:

INSTRUMENTS :
CURRENCY :
UNITED STATES OF AMERICA DOLLARS
TERM : ( ) YEAR(S) AND ONE (1)DAY INTEREST : % ( PERCENT)
COUPON ISSUING BANKS : FROM TOP TWENTY-FIVE (25) WESTERN EUROPEAN
BANKS RATED “AA” OR BETTER WITH NORMAL EXCLUSIONS
DENOMINATIONS : $10, $25, $50 AND $100 MILLION UNITED STATES DOLLARS

THIS CONDITIONAL, IRREVOCABLE, DIVISIBLE, ASSIGNABLE, TRANSFERABLE AND CALLABLE S.W.I.F.T. WIRE TRANSFER IS VALID FOR TEN (10) BANKING DAYS FROM ____ DAY OF ________ 2004 AND UNTIL THE ____ DAY OF _______ 2004 1700HRS CENTRAL EUROPEAN TIME.
http://www.wallstreetfunds.biz/Bankers/MT-103format.htm