This is a Swift class 7:

Bank Guarantee and Letter of Credit procedure, Procedure 60: Blocked Funds. The Course of Action When Your Bank Issues An MT-760: When an MT-760 is issued, the issuing bank puts a hold on the client's funds, blocking the client from using them. The funds are then at the disposal of the person the MT-760 was issued in favor of. For this reason it is not wise to issue an MT-760 before being absolutely certain as this can mean a large financial loss for absolutely no gain. In some cases, unscrupulous traders will use the MT-760 to open a line of credit, which they then default on, leaving the issuer of the MT-760 liable.

What A MT-760 Looks Like:

It is important to remember that an MT-760 is actually an interbank communication, so one never really sees an MT-760. You may need a special account to be able to use this procedure.

The Cost of A MT-760:

The cost of an MT-760 varies greatly from bank to bank. Be aware however, that due to the amount of risk involved for a bank in guaranteeing payment, a MT-760 is normally fairly expensive, with the usual bank fee for issuing a MT-760 being between 0.5% and 1.5% of the total value of the funds blocked. Potential of Negotiation Once A MT-760 is Sent: Once a MT-760 has been issued, it is not negotiable. For this reason, many traders prefer a Letter of Credit, which is negotiable and can be amended in response to unforeseen changes in circumstances, such as a delayed shipping schedule, lower production than anticipated, and other such events.

How You Get A MT-760:

A MT-760 can be obtained from a bank on the international SWIFT bank network. However not all US banks are on this network, so you may have to change bank. A lawyer, private banker, equity funds cannot be on on Swift, only banks.

So no broker or financial institution other than a bank can help you with blocking funds. The CROSSWAY CAPITAL Sydney Port Moresby Singapore Kuala Lumpur Taipei Vancouver banks underwrite the blocked funds with the funds in the client's account, and if this is not fully funded, they will make other banks "confirm" their guarantee, spreading the risk.

HSBC's swift code should be written in one phase in 11 capital letter without spacing.
If the money is wiring into HSBC Hong Kong, then the swift code are as below:
HSBC SWIFT CODE : HSBCHKHHHKH

MT 103/72 is the new form of an MT 103/23. This is a conditional payment. The condition that will be in the field (72) will state that the MT103 Conditional payment is contingent upon Assay and shipping documents being provided in accordance with terms of the Contract Number.

Only the Buyer can release the payment when the condition from the Seller is met, which in this case is: “CONDITION: Payment is released only against documents and product being properly delivered and loaded at the loading port.

The payment is NEVER released before verification by The Buyer of all product documentation, and that the product loaded on the ship.

The FUNDS are always under the control of The Buyer. The Seller on his part, accepts withholding of the money by Buyer for 10 Banking days, in those 10 days all documentation including DIP TEST and SGS report, must be verified by the Buyer who will receive the BILL OF LADING verifying that (i) the product being delivered meets all the technical specifications of The Buyer; and (ii) that the product is loaded on the vessel, and ready to go, free and clear. The only way to release the payment is: that product is verified by The Buyer and title over the product is transferred to The Buyer and that the Vessel leaves the port of destination, free and clear.

The Buyer has the right to have a representative at the site of the Loading Port, so that Buyer can complete inspection of the product at his full satisfaction, and verify that product is loaded into the Vessel, to the effect of verifying that all steps previously described are completed, before releasing the payment, and make sure that this is done under total security and safety.

Along with the Contract of Sale, at the moment of signature, the Buyer may issue a formal written request on his own letterhead duly sealed, requesting that the Buyer or Buyer’s representative may be at the Loading Port of shipment, so the Seller may manage and issue the appropriate authorization to the Buyer or his representative, to be on the Loading dock, on site, at the precise moment that product is being delivered and loaded into the Vessel, as has been described above in this report, before the payment of the product is released by The Buyer.

In this way, with this authorization, it will be possible for The Buyer or his representative to make direct verification with their own eyes, that all conditions of validity of the product and loading procedures are completed before the release of the payment.

All aspects of the issuance of the documents for the product and the CONDITIONAL MT 103 must be issued and verified with the person you mentioned to me (Miss or Mr) and the release of payment be ordered after or against the product being fully loaded into the ship. Payment is never released and is under complete control of the Buyer until the product loaded on vessel is to the full satisfaction of the Buyer.

Please note that above procedure its not very popular between brokers or resellers due to their lack of funds.

For further clarification, comment or notice, please contact the address below,