MT 364 Guidelines

1. Cancellation of a Message

   The MT 392 can also be used for cancellation. The following issues however, have to be considered:

   • Acknowledgement: by sending the MT 392, the sender requests the receiver to cancel the confirmation previously sent. The receiver must acknowledge the request by sending an MT 396 back to the sender of the MT 392.

   • Routing: the MT 392 might not be routed to the same destination as the MT 364 to be cancelled.

   • Repetition of the original message: in the MT 392, only the sender's reference of the previous message is mandatory, all other fields are optional. When an MT 364 with CANC is used, the fields to be copied are mandated by the standard.

2. Settlement Details

   The table below shows how the different settlement parties involved in the deal can be identified. The table is presented from party A's point of view.

   Whenever possible, users should use option A to identify institutions in these fields. Use of free text, ie, option D, except when used to specify recognized code words, is strongly discouraged. Option D not only precludes party B from matching and further processing the message automatically but also is contrary to the message text standards which state that option D is only to be used when no other option is available.

   • Party A services account of party B. No separate settlement messages are sent.

     Party A will RECEIVE funds from Party B	Party A will PAY funds to Party B
     Party A will debit party B's account	Party A will credit party B's account
     :53a: not used	:53a: not used
     :56a: not used	:56a: not used
     :86a: not used	:86a: not used
     :57a:[/account no of party B] party A	:57a:[/account no of party B] party A

   • Party B services account of party A. No separate settlement messages are sent.

     Party A will RECEIVE funds from Party B	Party A will PAY funds to Party B
     Party B will credit party A's account	Party B will debit party A's account
     :53a: not used	:53a: not used
     :56a: not used	:56a: not used
     :86a: not used	:86a: not used
     :57a:[/account no of party A] party B	57a:[/account no of party A] party B

   • Beneficiary's account serviced by a financial institution other than party A or party B. The payer sends an MT 202 to its correspondent who will then send an MT 205 or equivalent to the correspondent of the payee. The correspondent can be a branch of the party.

     Party A will RECEIVE funds from Party B	Party A will PAY funds to Party B
     Credit to party A's account with that financial institution	Credit to party B's account with that financial institution
     [:53a: Correspondent of party B]	[:53a: Correspondent of party A]
     :56a: not used	:56a: not used
     :86a: not used	:86a: not used
     :57a:[/account no of party A] correspondent of party A	:57a:[/account no of party B] correspondent of party B

   • Beneficiary receives the funds through another institution (eg, BANK x for party x).

     The payer sends an MT 202 to its correspondent. The correspondent will then send an MT 205 or equivalent to the correspondent of BANK x, ie, CORR x. CORR x will then send an MT 202 to BANK x who will then send an MT 950 to party x.

     Field 56a identifies where BANK x will receive the funds.

     Party A will RECEIVE funds from Party B	Party A will PAY funds to Party B
     BANK A will receive the funds for party A	BANK B will receive the funds for party B
     [:53a:Correspondent of party B]	[:53a:Correspondent of party A]
     :56a:[/account no of BANK A] CORR A	:56a:[/account no of BANK B] CORR B
     :86a: not used	:86a: not used
     :57a:[/account no of party A] BANK A	:57a:[/account no of party B] BANK B

   • Beneficiary receives the funds through another institution (eg, BANK x for party x), the correspondent of BANK x, CORR x also uses a correspondent.

     The payer sends an MT 202 to its correspondent. The correspondent will then send an MT 205 or equivalent to the correspondent of CORR x. The correspondent of CORR x will then send an MT 202 to CORR x. CORR x will then send an MT 202 to BANK x who will then send an MT 950 to party x.

     Field 86a identifies where CORR x will receive the funds.

     Field 56a identifies the correspondent of BANK x.

     Party A will RECEIVE funds from Party B	Party A will PAY funds to Party B
     BANK A will receive the funds for party A via CORR A	BANK B will receive the funds for party B via CORR B
     [:53a:Correspondent of party B]	[:53a:Correspondent of party A]
     :56a:[/account no of BANK A] CORR A	:56a:[/account no of BANK B] CORR B
     :86a:[/account of CORR A] correspondent of CORR A	:86a:[/account no of CORR B] correspondent of CORR B
     :57a:[/account no of partyA] BANK A	:57a:[/account no of party B] BANK B

   • Beneficiary to receive the funds directly through a clearing system.

     The payer sends an MT 202 to its correspondent who will then send an MT 202 to the payee.

     Party A will RECEIVE funds from Party B	Party A will PAY funds to Party B
     Party A will receive the funds through clearing	Party B will receive the funds through clearing
     [:53a:Correspondent of party B]	[:53a:Correspondent of party A]
     :56a: not used	:56a: not used
     :86a: not used	:86a: not used
     :57a:/CLEAR party A	:57a:/CLEAR party B

   • The counterparties use their standing settlement instructions.

     Party A will RECEIVE funds from Party B	Party A will PAY funds to Party B
     :53a: not used	:53a: not used
     :56a: not used	:56a: not used
     :86a: not used	:86a: not used
     :57D:SSI	:57D:SSI

   • The payment flows are netted based on a bilateral agreement.

     Party A will RECEIVE funds from Party B	Party A will PAY funds to Party B
     :53a: not used	:53a: not used
     :56a: not used	:56a: not used
     :86a: not used	:86a: not used
     :57D:NET	:57D:NET

   • There is no payment (amount is zero) or the settlement details are irrelevant.

     Party A will RECEIVE funds from Party B	Party A will PAY funds to Party B
     :53a: not used	:53a: not used
     :56a: not used	:56a: not used
     :86a: not used	:86a: not used
     :57D:NONE	:57D:NONE

   • The settlement details are not known at the time the confirmation is issued.

     Party A will RECEIVE funds from Party B	Party A will PAY funds to Party B
     :53a: not used	:53a: not used
     :56a: not used	:56a: not used
     :86a: not used	:86a: not used
     :57D:UNKNOWN	:57D:UNKNOWN

   Note: It is only necessary to quote an account number when multiple accounts are serviced for the same institution.