Citi’s Capability for SWIFT MT798

Frequently Asked Questions

Treasury andServices
Transaction Trade Solutions
2 Treasury and Trade Solutions

What is the MT798? What is MT798 FileAct?

• SWIFT’s Trade for Corporates, the MT798, offers
corporates the use of established interbank industry
standards in Trade Finance through structured messages
between corporates and banks.
• MT798, also referred to as “The Trade Envelope,”
is an authenticated message used to exchange Trade
data between corporates and member banks of the
SWIFT system.
• MT798 provides a multibank gateway through a centralized
and secure channel for customers working with two or
more banks.
SWIFT FileAct is a message protocol that allows the secure
and reliable transfer of files and is typically used to exchange
batches of structured financial messages and large reports. In
Trade, Citi utilizes the FileAct protocol to exchange document
files with our clients. Some examples include the presentation
of country-specific regulatory documents for the issuance
of an Import LC, or presentation of documents under an LC
under a direct presentation scenario.
What types of Trade data can
be exchanged using MT798?
• The MT798 message allows for the exchange of:
— Import Letters of Credit
— Export Letters of Credit
— Guarantees/Standby Letters of Credit
— Related sub-messages (Existing category 7 messages)

Trade for Corporates — in theory...

SWIFT flows FIN MT798

SWIFT flows FIN MT7xx
SWIFT flows FileAct

MT798s MT798s

1 2 3
SWIFTNet SWIFTNet SWIFTNet

Importer Importer’s Exporter’s

MT700
bank(s) bank(s) 4 Exporter
5
1. Importer sends Application for a Letter of 3. Exporter’s bank’s application forwards
Credit (MT798) to its bank either via FIN the MT700 inside an MT798 to the
or FileAct. Exporter as an Advice of Letter of Credit.

2. Importer’s bank’s application extracts 4. Exporter sends documents via FileAct to

the appropriate fields from the MT798, its bank (e.g., prechecking). MT798s
putting them into an Issue of Letter of Documents
5. Exporter’s bank can utilize FileAct to (via FileAct)
Credit (MT700) and sends them to the
Exporter’s bank. send documents to the exporter.
3 Treasury and Trade Solutions

What are the benefits to corporates of using SWIFT MT798?

• Corporates can enjoy the benefits of their access to SWIFT
to manage all of their Trade Finance transactions with
multiple banks on one platform.
• Corporates will improve working capital through a
centralized multibank view of their trade transactions
worldwide using one of the SWIFT Ready partner
applications. For some corporates who can leverage their
SWIFT connectivity implemented for cash transactions,
they will also save time and money as they move away from
proprietary tools and manual processes.
• Allows for a single channel, centralization and
standardization while working with multiple banks.
• Ensures secure and reliable connectivity between banks
and corporates.
• MT798 solution is Technology independent (SWIFT
Standard) and Channel independent (corporates can use
Internet, SWIFT or both). Corporates can use their existing
setups with banks for exchanging MT798 messages.
• Corporates can enjoy this service without an additional fee
to the bank.

SWIFT MT798 Connectivity solutions for customers

Front-Office Trade Flexible Connectivity Corporate Banking

Application Options Relations

Citibank
Citi
Corporate’s Own Corporate’s
MT798
In-house Own SWIFT
Development Interface Citi’s Internal
Trade System
Corporate Or Or
ERP System
Bank A
Receive Bank A
From MT798
Vendor Ready
Vendor Ready Bank A Internal
SWIFTNet
Trade Portal Trade System
Service Bureau
MT798s

Or Or Bank B Bank B
Send To MT798

Bank B Internal
Corporate Manual Trade System
Third-Party
Access to Vendor
Service Bureau
Ready Portal
4 Treasury and Trade Solutions
Is MT798 the same as Bolero?
• Although SWIFT MT798 and Bolero both offer a Trade
Multibank solution, they have different offerings and are
not the same.
SWIFT MT798
The new SWIFT Message Type 798 is an “envelope” in
which most of the standard trade 700 messages can
be enclosed. For example, a 700-message issuance of a
Documentary LC can be enclosed in an MT798. These
messages utilize the SWIFT communication flow used today
by banks for Trade, Cash and Securities.
SWIFT is a bank-owned platform and bank usage fees are
based on number of messages.
Corporates would typically need a third-party vendor
application and SWIFT access to initiate and receive the
MT798 messages.
SWIFT is primarily a bank-to-bank communications tool.
Cash messages have included the Corporate/Bank flows.
Trade message flows with Corporates is a newer offering.
Corporates who currently have SWIFT cash flows with a
bank may be interested in expanding to Trade. Corporates
who use more than five banks for their Trade flows and
have sizeable transaction flows might be good candidates.
Most banks across the globe are SWIFT enabled. Some
banks are MT798 capable today, while others have stated
that they plan to be ready in the next nine to 18 months.
Corporate clients are also implementing or considering
the MT798.
Citi has been MT798 enabled since 2012. We would like this
to be the preferred multibanking solution.
• Below is a side-by-side comparison of SWIFT MT798 and
Bolero, which helps to illustrate the ways in which the two
functionalities differ.
Bolero
Bolero is an independent vendor with a hosted solution.
Product offerings are Import/Export Letters of Credit and
Guarantees/Standby Letters of Credit.
Bolero markets to Corporate clients. Banks pay fees to
access and communicate with these clients.
Both Corporates and Banks need to access the Bolero-
hosted web-based portal to communicate. Participants
must adhere to the Bolero Rulebook, which defines the
Rules of Engagement.
Bolero originally began as a SWIFT initiative. Bolero is used
only for Trade flows.
Corporates who use more than five banks for their Trade
flows and have sizeable transaction flows might be good
candidates.
Some banks are accessing Bolero today.
Citi has engaged with Bolero as well as other third-party
vendors to support the needs of our clients.
5 Treasury and Trade Solutions

How do corporates get access What MT798 messages can

to MT798? corporates send to bank?
• Corporates typically need to implement MT798 capabilities (Corporate-to-Bank)
either through in-house development or a vendor product
to send and receive the MT798 messages. (C2B) Import Transaction Flow:
• Moreover, corporates must be connected to SWIFT network • Application for issuance of Documentary Credit
since MT798 is a standard SWIFT message. — (MT798/770/700/701)
• Request for amendment of Documentary Credit

Implementation Model — (MT798/772/707)

• Response to Advice of Discrepancy
The current implementation model for the corporate client
— (MT798/749)
assumes that either a client in-house solution or a third- party
vendor will facilitate the capability. (C2B) Export Transaction Flow:
• Advice of Acceptance/Refusal of Amendment
While various vendors may be able to facilitate MT798 for
corporates, the following vendors provide Corporates with — (MT798/735)
products or platforms and are currently certified by SWIFT.
• Request for Transfer of a Documentary Credit

1. Global Trade Corporation — (MT798/722)

Global
(C2B) Common Group Transaction Flow:
Jacob Katsman, CEO
• Free Format Message
2727 Steeles Ave. West, 4th Floor
Toronto, ON, Canada, M3J 3G9 — (MT798/788/799)
Tel: +1 (416) 661-8520
Mobile: +1 (416) 627-8520 (C2B) Guarantee/Standby Letter of Credit Transaction Flow:
E-mail: katsman@globaltradecorp.com • Application for issuance of Guarantee/Standby Letter
Website: www.globaltradecorp.com of Credit
— (MT798/761 or 784 & MT798/760)
2. Misys Solutions for Banking
Americas • Request for amendment of Guarantee/Standby Letter
Bryan Watson of Credit
1180 Avenue of the Americas, 5th Floor — (MT798/763 or 786 & MT798/767)
New York, NY 10036, USA
• Response to extend or pay Guarantee/Standby Letter
Tel: +1 (212) 898-9431
of Credit
Mobile: +1 (646) 964-8457
E-mail: bryan.watson@misys.com — (MT798/778)

APAC • Claim for payment under Guarantee/Standby Letter

Parag Ekbote of Credit
E-mail: parag.ekbote@misys.com — (MT798/712)

Europe • Request for Guarantee/Standby Letter of Credit

Andrew Coles Reduction/Release
E-mail: andrew.coles@misys.com — (MT798/783)
MEA
Carlos Teixeira
E-mail: carlos.teixeira@misys.com

For other SWIFT MT798 Vendors, please refer to SWIFT’s

website here.
6 Treasury and Trade Solutions

What MT798 messages can corporates expect to receive from

banks? (Bank-to-Corporate)
(B2C) Import Transaction Flow: • Notification of Advice of Refusal
• Notification of issuance of Documentary Credit
— (MT798/733/734)
— (MT798/771/700/701)
• Notification of Advice of Reimbursement or Payment
• Notification of amendment of Documentary Credit
— (MT798/755/756)
— (MT798/773/707)
• Advice of Transfer Documentary Credit
• Notification of Acceptance/Refusal of Amendment
— (MT798/782)
— (MT798/736)
• Settlement of Export Documentary Credit
• Advice of Discrepancy
— (MT798/758)
— (MT798/748/750)
(B2C) Guarantee/Standby Letter of Credit Transaction Flow:
• Notification of Advice of Payment/Acceptance/Negotiation • Notification of Guarantee/Standby Letter of Credit
— (MT798/753/754) — (MT798/762 or 785 & MT798/760)
• Notification of Advice of Discharge • Notification of amendment of Guarantee/Standby Letter
— (MT798/731/732) of Credit

• Notification of Advice of Refusal — (MT798/764 or 786 & MT798/767)

— (MT798/733/734) • Advice of issued Guarantee/Standby Letter of Credit

• Notification of Advice of Reimbursement or Payment — (MT798/745 or 746 & MT798/760)

— (MT798/755/756) • Advice of amended Guarantee/Standby Letter of Credit

• Settlement of Import Documentary Credit — (MT798/743 or 744 & MT798/767)

— (MT798/757) • Query to extend or pay Guarantee/Standby Letter of Credit

— (MT798/777)
(B2C) Export Transaction Flow:
• Advice of Documentary Credit • Acknowledgment of claim for payment under Guarantee/
Standby Letter of Credit
— (MT798/774/700/701)
— (MT798/714)
• Advice of Amendment of Documentary Credit
• Notification of claim for payment of Guarantee/Standby
— (MT798/776/707)
Letter of Credit
• Advice of Third Bank Documentary Credit
— (MT798/779)
— (MT798/780/710/711)
• Settlement of Guarantee/Standby Letter of Credit claim for
• Response to Documentary Credit presentation payment and/or charges
— (MT798/737) — (MT798/781)
• Notification of authorization to Pay, Accept or Negotiate • Advice of Guarantee/Standby Letter of Credit Reduction
— (MT798/751/752) or Release

• Notification of Advice of Payment/Acceptance/Negotiation — (MT798/766/769)

— (MT798/753/754) (B2C) Common Group Transaction Flow:

• Free Format Message
• Notification of Advice of Discharge
— (MT798/789/799)
— (MT798/731/732)
7 Treasury and Trade Solutions

What are the next steps once a

3rd-party vendor is selected?
1. Complete and Sign Citi Onboarding Forms

2. Citi, the client and the 3rd-party vendor to conduct

a Bilateral RMA SWIFT Key Exchange test to ensure
connectivity

3. Citi and the client will participate in a Production

Verification Test (PVT) to ensure the flow between the
client and Citi is functional

4. Go Live

For more details, please contact your Citi Trade representative.

Treasury and Trade Solutions

citi.com/treasuryandtradesolutions
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