SWIFT Messages for Financial Institutions
The standing demand of newly formed financial institutions, such as Swedish Credit Union, is to issue Letters of Credit and Bank Guarantees and to provide other documentary business. One of main tools is the SWIFT messaging system.
Thetabiz Corporation is intermediary to the corporate participant in SWIFT messaging network, thus enabling the Swedish Credit Unions to send SWIFT messages of the series 900 and 700, issuing Letters of Credit or Bank Guarantees.
- Two SWIFT Messaging Programs Available
- Our Intermediary Help to Financial Institutions
- The Obligations of the Financial Institutions
- Advantages of the SWIFT Messaging Service
- Schedule of Fees
Two SWIFT Messaging Programs Available
There are two possible program participation options, one is the monthly subscription and other is one time SWIFT message on demand. The one time SWIFT message on demand is possible for clients without monthly subscription. However, second such demand within 6 months period will be charged the one time SWIFT message fee plus the quarterly subscription for the previous quarterly period.
Our Intermediary Help to Financial Institutions
Thetabiz Corporation will connect the interested financial institutions, such as New Zealand Credit Unions or Swedish Credit Unions or Corporations and Financial companies to the corporate participant in the SWIFT network which is one of just few companies in the world which offers the credit unions SWIFT participation.
The Obligations of the Financial Institutions
The financial institution must agree with the provider to pay the fees in advance prior to sending the SWIFT messages, and must understand that SWIFT messages sent go over public network that may be subject to overview by parties other than the provider and must agree to hold harmless the provider against such intrusion to the confidential informations by third parties. Further, the financial institution must understand that the form of such SWIFT messages transmitted on behalf of the financial institution are sent without the verification of the text or authentications.
The provider will not act as an agent for the financial institution and is authorized to send SWIFT messages on behalf of other financial institutions.
Each financial institutions such as Swedish Credit Unions or New Zealand Credit Unions or other financial companies or banks must provide full due diligence to the provider and further must conduct the full due diligence on the beneficiary of such messages. The transactions must represent routine business transactions. The financial institution has to sign the Indemnity Agreement with the provider as the transmitting party.
The provider as the transmitting party of SWIFT messages for and on behalf of financial institutions is based in the United States and has its own BIC (SWIFT code).
Advantages of the SWIFT Messaging Service
Financial institutions such as Swedish Credit Unions or other financial companies and banks gain the opportunity to send SWIFT messages, thus opening a wide range of documentary business benefits such as:
- Issuing Letter of Credits
- Issuing Bank Guarantees
LETTER OF CREDIT are contracts. An open or sealed letter, from a merchant in one place, directed to another, in another place or country, requiring him that if a person therein named, or the bearer of the letter, shall have occasion to buy commodities, or to want money to any particular or unlimited amount, either to procure the same, or to pass his promise, bill, or other engagement for it, the writer of the letter undertaking to provide him the money for the goods, or to repay him by exchange, or to give him such satisfaction as he shall require, either for himself or the bearer of the letter.
These letters are either general or special; the former is directed to the writer's friends or correspondents generally, where the bearer of the letter may happen to go; the latter is directed to some particular person. When the letter is presented to the person to whom it is addressed, he either agrees to comply with the request, in which case he immediately becomes bound to fulfill all the engagements therein mentioned; or he refuses in which case the bearer should return it to the giver without any other proceeding, unless, indeed, the merchant to whom the letter is directed is a debtor of the merchant who gave the letter, in which case he should procure the letter to be protested
Schedule of Fees
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