Image of MT103 SWIFT with fields 52a and 57a

MT103 SWIFT message with optional fields 52a and 57a – Part 1

The MT103 SWIFT message with optional fields 52a (Ordering institution) and 57a (Account with institution) is presented and analyzed in this article. In previous articles, the basic MT103 SWIFT message with mandatory fields and the MT103 SWIFT Message with optional fields 53B, 70 and 71G were considered. Read them to get additional information and a better understanding of the MT103 SWIFT Message.

The picture below shows the main actors and highlights the optional fields transported in the messages.

Image of MT103 SWIFT with fields 52a and 57a
MT103 SWIFT Message with fields 52a and 57a

The table below contains information that is highlighted in the examples provided in the SWIFT Message Reference Guide. An additionl column (comments) provides further explanation on the fields to ease their understanding.

Read this page on the SWIFT formatting rules and Character sets of MT Messages to get additional information and understand what 16x, 4!c and the format of the field options mean.

Narratives and notes on this MT103 SWIFT Message

As usual, there is more in this MT103 SWIFT message than meets the eye. The following narrative and notes allow to get a deeper understanding of the message content.

Narrative and note 1 (Main purpose of this MT103 SWIFT message)

The Sender (BNPAFRPP) is asking Receiver (PNBPUS3N) to debit sender’s account and credit the account of the Bank (OCBCSGSG) indicated in tag 57A.

This indicates that Sender and Beneficiary customer’s Bank do not have direct account relationship in the currency of the transaction (USD).  Otherwise the sender would send the message directly to the beneficiary customer’s Bank.

Narrative and note 2

The ordering institution (Tag 52D) is provided in the MT103 SWIFT Message. This means the ordering customer is not customer of the Sender. BNPAFRPP sends the MT103 on behalf of the ordering institution 52D:BANQUE DELUBAC ET CIE.

BANQUE DELUBAC ET CIE is a small bank that has an agreement with a major bank (BNP PARIBAS) for the processing and settlement of currency transactions. BANQUE DELUBAC ET CIE can then use the correspondent network of BNP PARIBAS.

Narrative and note 3 (Account relationships)

  • Sender (BNPAFRPP) has an account relationship with Receiver (PNBPUS3N) in USD currency.
  • Receiver (PNBPUS3N) is correspondent of both sender (BNPAFRPP) and Beneficiary Bank (57A:OCBCSGSG) in USD currency. PNBPUS3N can debit BNPAFRPP account and credit OCBCSGSG account.
  • Ordering Customer account (:50F:/01234567890) is opened with Ordering Institution (52D:BANQUE DELUBAC ET CIE).

Narrative and note 4

Details of charges (Tag 71A) is SHA. The charges are shared between Ordering and beneficiary customers.  Sender pays charges to the ordering bank. Beneficiary pays charges to the receiving bank.

It is always interesting to see how much can be said about an MT103 SWIFT message like this one. But the message has not reached the final destination yet (57A:OCBCSGSG). The receiver (PNBPUS3N) must forward it to the beneficiary’s bank. What are the differences between this message and the next one (that PNBPUS3N will forward to OCBCSGSG)? What does that message contain and what are the meaning of the different message elements? These questions will be answered in the next article.

34 thoughts on “MT103 SWIFT message with optional fields 52a and 57a – Part 1”

  1. From the ordering institution was this message sent as Mt101 to sender ?
    if there was no direct relationship between sender and actual receiver bank(where account of beneficiary exists) then why receiver correspondent was not used ?
    I am new to payments can you please provide clarification over the above questions ?

    1. Hi,
      First question: The ordering institution received an instruction form its customer through MT101 or through other means like E-banking, Teller and so on.
      Read my articles about MT101 to understand how that message is used.
      The actual transfer is carried out with an MT103 message between financial institutions.
      Second question: The receiver correspondent is used. However, in this particular case, sender and receiver correspondents are the same.
      I hope it clarifies a bit.

  2. Tag53a consists of sender correspondent , Tag54a consists of details about receiver correspondent , but that tag is empty in the message ??

        1. Ok I got it. It is simply because the receiver of this message is the receiver correspondent itself.
          So no need to mention it again in the message. He knows he is the receiver’s correpondent and what to do with the message.
          I hope this helps. 🙂

          1. Jean Paul, you are simply great !!! you have answers to everything 🙂 , i am very fortunate to have mentor like you !!

    1. Hi Chris,
      You find the response in the SWIFT standards. Under the usage rules of Field 57a: Account With Institution, you read the following:”When field 57a is not present, it means that the Receiver is also the account with institution.” So if you send the payment directly to the receiver that is also the Account With Institution, no need to mention the field 57. Let me know if you have further question.

  3. Thank you. That makes sense.

    However, the sender and receiver info is usually not located in block 4. So the operator creating the message should be aware that the receiver and the account with institution are the same…..correct?

    1. True. Sender and receiver info are not provided in the block 4. Operators should be aware of it definitely even if well designed payment engine softwares can be of great help in guiding the end users.

  4. The content published is very good. It gives a very good and practical view of what fits where and why. Much appreciated!!

    1. Hi Sai, 🙂
      Thank you for your nice comment!
      Enjoy the reading and do not hesitate to share your remarks or ask questions. I would appreciate to support.

  5. Hi Paul. In Block 2 (Application Header) the field input/output id , here from the above picture BNP Paribas sending a MT103 message to the correspondent bank, is it the Input message? or the output message?

  6. Hi Paul, Thanks for the above examples
    Im stuck with the usage of Clearing system codes in 57A and 57D can you please help me out?

  7. HI

    If I want to use the National ID in Tag 57 and 58 , can you guide me how to use it whether it can be used in A, B , C And D option

  8. Hi Jean,

    What are the valid values that can be passed in Party Identifier Tag 57 B option?
    Can a BIC be passed with // in Tag 57B Party identifier?

    Thanks in Advance

    1. Hi Jagadish,
      Option B is very seldom used. Personally I have never seen it in practice. Now the answer to your questions.
      1st question:
      Option B [/1!a][/34x](Party Identifier) – This is generally an account number.
      [35x](Location) – Location of the account with institution.
      Second question: I would say NO. The standard does not say that. If you want to use the BIC, use option A.
      Best regards, Jean Paul

    1. Hi Paresh, Yes it does. And [1!a] exists in many other fields. However, this is almost never used in practice. It is sufficient just to provide the account as the message tells the receiving party what should happen, if the account is to be debited or credited.

  9. Hi, can I use tag 53 and 57 in 103swift message ? ( bank xxx (me) gives instructions for his corresponding bank (sss) to debit his account, and credit bank (ddd) on his bistro account in bank(sss) for benefit. company (59f) , or I need to use 53-54 and write that:
    53: /sss
    //senders cor account number
    54: /sss
    //receivers cor account number
    59: company

    Or
    53:/sss
    / senders acc
    57: /ddd
    59:/iban
    Thanks for answering

  10. In 57 Tag option D, its not necessary to pass a routing code. It could just contain bank’s name and address
    :57D:ABC BANK
    001 CROSSROADS NORTH, STE 10
    0

    Is this correct understanding

  11. Hi, when instructing an MT103 payment as a custodian, in which the initiator of the transaction is a 3rd party Investment Manager instructing as an authorised agent of the custodian’s contractual client, who should be in 50F – Ordering Customer and Field 52 – Ordering Institution.

    Is the Ordering Customer the custodian’s contractual client, and the Ordering Institution the BIC of the Investment Manager?

  12. Hi Jean Paul,

    Do you know what is the exact meaning of the /B4/F57_ALTE/F57_4. It is an explanation of the error T34 from MT103, firld 57A.

    Thank you in advance,

    Rossi

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