MT103

MT103 is a SWIFT message type used for single customer credit transfers between banks. It is the primary format for communicating payment instructions initiated by a customer to credit a recipient’s account, typically in cross-border transactions but also used domestically in some systems.

The MT103 message conveys the essential details needed to process the transfer. It includes the value date, currency and amount, the ordering customer and their account, the beneficiary and their bank, and optional remittance information. It also contains a unique transaction reference and instructions on how charges are to be handled, such as OUR, SHA, or BEN. The format is designed to provide a clear audit trail and enable straight-through processing by the receiving bank.

Purpose and usage: MT103 is used for transfers where a customer initiates a payment to a beneficiary, enabling direct credit to the recipient’s account. It is commonly employed for international payments, facilitating traceability for both the payer and the beneficiary. The message can carry remittance details to help the recipient identify the purpose of the transfer.

Processing: MT103 messages are transmitted over the SWIFT network from the sending bank to the receiving bank. In many cases, the MT103 accompanies an interbank settlement message, such as MT202, which handles the actual movement of funds between banks. The MT103 itself remains the customer-facing instruction for crediting the beneficiary.

Limitations and compliance: Like all payments, MT103 transactions are subject to anti-money laundering screening, sanctions checks, and other regulatory controls. The beneficiary’s bank may apply additional verification or timing considerations, and funds availability depends on the involved institutions and jurisdictions. Related message types include MT202 for interbank settlement and MT799 for free-format text.