10 February 2014

Painless wire-transfer instructions

For many business users, composing wire-transfer instructions for transmitting funds to Canadian banks can be rather frustrating, because the banks themselves do not present the syntax in a way that can be converted to the internationally recognized SWIFT MT103 format. The templates I have seen do not even allow for fillable formats for on-screen entry and validation before printing and forwarding, let along ease of use for on-screen data entry such as is used in other countries. Here are some pointers that I have gathered which may be of use.

Scenario: transmission of CAD funds to a Canadian bank (details of beneficiary)

BankCanadian Imperial Bank of Commerce (010) (SWIFT CIBCCATT)
Transit (branch)aaaaa
Account numberxx-xxxxx
Branch address123 ANYWHERE ST
ST JOHN'S, NL  A1A 1A1
CANADA
Beneficiary name and addressJOHN Q. DOE
456 ELSEWHERE AV
ST JOHN'S, NL  A1A 1A2
Remittance informationEither description or reference - in this case, assume payment reference is 123456789
Responsibility for wire chargesBeneficiary (BEN)/Sender (OUR)/Shared (SHA) - in this case, assume BEN

The key fields will be laid out as follows:

Field tagField nameFormat to be entered
:57AAccount with institutionSWIFT BIC: CIBCCATT
//CC0010aaaaa
:59Beneficiaryxx-xxxxx
JOHN Q. DOE
456 ELSEWHERE AV
ST JOHN'S, NL  A1A 1A2
:70Remittance information123456789
:71ADetails of chargesBEN

There are some possible variations:
  • If the beneficiary has obtained his own SWIFT Business Entity Identifier, use tag :59A and enter the account number and BEI only.
  • The beneficiary's bank may require the insertion of the branch's address as well, in which case use tag :57D
 I hope this clarifies matters for some users.

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