The MT 405 clean collection is sent by the remitting bank to the collecting bank.
It may also be sent:
on behalf of the remitting bank directly to the collecting bank.
to the collecting bank via another financial institution.
by a collecting bank to a presenting bank.
It is used to convey instructions to obtain payment or acceptance against specified conditions. These instructions consist of the information pertaining to the collection instruction as well as to any underlying financial documents.
The message is to be used for clean collections only and supports the following financial documents:
accepted bills of exchange
accepted and avalised bills of exchange
non-accepted bills of exchange
promissory notes
receipts
others (bilaterally agreed).
The message provides authentication to these financial documents without having to physically transmit them.
Transaction Flow
The use of the MT 405 may be subject to bilateral/multilateral agreements between the parties involved in the transaction.
The entire chain of possible parties in the transaction flow is illustrated by the following figure:
