MT799 Blocked Funds: What It Means and How to Verify It
By the Vanguard Verify desk · Published 2026-10-30 · Updated 2026-10-30
Short answer: an MT799 is a free-format, authenticated SWIFT message between two banks. It does not move money and, on its own, does not block, freeze or reserve funds. A bank can put a hold on a customer's account, but that is an internal step the bank takes on its own client's instruction — the MT799 can only report it. A "blocked funds MT799" proves something only if it arrives bank-to-bank at your own bank and your bank confirms the sender and the wording.
What "blocked funds" usually means
In a deal chat, "we will block funds by MT799" normally means the buyer's bank will send your bank a message saying a sum is held for a transaction. Trade Finance Global describes the MT799 as a notification and verification tool that is "not used as a method of transferring funds or an undertaking to do the same". Money is only ring-fenced for a deal when an undertaking is issued, such as a guarantee or standby letter of credit sent by MT760, or a documentary credit by MT700. See MT760 vs MT799.
| Message | What it does | Can the seller rely on it to get paid? |
|---|---|---|
| MT799 "blocked funds" | Free-format information from bank to bank | No — no payment promise unless the text itself creates one, and banks rarely word it that way |
| MT760 (SBLC / guarantee) | Issues a bank undertaking | Yes, if you present compliant documents or a compliant demand |
| MT700 (documentary credit) | Issues a letter of credit | Yes, against compliant documents |
| MT103 | Customer credit transfer | It is the payment itself |
How to check a blocked funds MT799
- Ask for it bank-to-bank only. Give the buyer your bank's name and SWIFT BIC. A PDF, screenshot or email "copy" of an MT799 is not evidence. Only your bank can see and authenticate a message it actually received.
- Have your bank confirm it received it. Ask your trade finance or correspondent banking desk to confirm the message, the sender BIC and the reference number. Do not rely on a phone number or email printed on the document.
- Check the sending bank is real. Look up the BIC with SWIFT and the bank's legal entity on GLEIF. Make sure the sender is the buyer's own bank, not a "provider" or "monetizer".
- Read the exact words. Look for the account holder's name, the amount, the currency, how long the hold lasts and what releases it. "Ready, willing and able" or "good, clean, clear funds" are statements, not commitments.
- Match the account holder to the buyer. The name in the message should be the legal entity that signs your contract and will open the payment instrument. Check that company in its official registry.
- Move to a real payment instrument. Treat the MT799 as a pre-advice at most. Your protection comes from an MT700 documentary credit, an MT760 standby or guarantee, or payment through a regulated escrow — not from the blocked funds message.
Red flags
- You are asked to pay a fee, "bank charges" or a "commission" before the MT799 is sent.
- The MT799 is sent to you by email or WhatsApp as a PDF or screenshot, with no copy at your bank.
- The sender is a third party that "leases" or "provides" blocked funds instead of the buyer's own bank.
- The text promises the bank will pay you but no MT760 or MT700 ever follows.
- Wording mixes real terms with jargon such as "good, clean, clear and of non-criminal origin", "fresh-cut" or "roll program". The US Treasury's Office of Inspector General lists this kind of language as a sign of prime bank fraud.
- Very large sums, secrecy, pressure to sign NDAs before any checks, or a claim that the bank "will deny involvement" if you call.
- The seller is asked to send the MT799. In a commodity deal the buyer gives proof of funds (POF) and the seller gives proof of product (POP).
Is an MT799 worthless?
No. When a real bank sends one bank-to-bank, it is authenticated and can be a useful first signal that the buyer has funds. Trade Finance Global notes that banks are cautious about sending them and often require the client to post collateral. Just keep in mind what it is: information, not a payment promise. For how an MT799 is used as proof of funds, see SWIFT MT799 POF.
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FAQ
Does an MT799 block funds?
No. An MT799 is a free-format message between banks. A bank can hold funds on its own client's instruction, and the MT799 can report that, but the message itself does not block, move or guarantee money.
How do I verify a blocked funds MT799?
Ask for it to be sent bank-to-bank to your bank's SWIFT BIC. Then have your own bank confirm it received the message, check who sent it and read the exact wording. PDFs and screenshots are not proof.
What should follow a blocked funds MT799?
A real payment instrument such as a documentary credit (MT700), a standby letter of credit or guarantee (MT760), or payment through a regulated escrow.
Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This answer is general information, not legal or financial advice.