If you are considering a major purchase, investing or doing business with another bank or financial institute, your bank may be required to provide a MT799 Proof of Funds. This is a very specific type of transmission between banks that allows one bank to confirm the amount of funds that you have on deposit.
A MT799 Proof of Funds cannot be used as a Proof of Funds letter to any other type of financial institute, seller or other type of entity. The only use of this type short, specific message is between banks that recognize each other as banks.
Format of the Transmission
One of the major benefits of the SWIFT Capital MT799 Proof of Funds is that it is done in the form of a SMS or text message between banking institutes. It confirms, in a standard format, the total of your deposits on hand as well as their specific contact information. In some cases it may also indicate the type of access to the account as well as a verification of deposit form.
These types of transmissions are designated as SWIFT and therefore contain an authenticator that provides confirmation of the sender. It is a simple way to avoid fraudulent messages.
There is typically a minimum fund account requirement for a bank to issue a SWIFT MT799. There is also a service fee for this type of confirmation and this fee will vary based on the specific financial institutions policies and fees.
What It Is Not
The entire purpose of the MT799 Proof of Funds message is simply to confirm that an investor, buyer or clients actually has the funds on hand in his or her account. It is not a guarantee from one bank to another to cover the funds or to promise to pay.
It also does not provide any information about any liens, debts or other issues with the account. There is no information provided with the transmission to indicate the type of deposits made to contribute to the available balance.
A MT799 Proof of Funds is not completed by the client, but can be requested by a client to facilitate a sale or purchase. After the transmission is sent and received other hard copy paperwork will follow to trace and verify the transaction.
