Fake proof of funds (MT799): 7 red flags

By the Vanguard Verify desk (bank trade-finance background since 2009) · Updated 27 Oct 2026

A proof of funds "MT799" is fake or worthless if it reaches you as a PDF, screenshot or email instead of bank to bank, if anyone asks for a fee to send or receive it, or if it claims the money is "blocked" or "guaranteed" for you. A real MT799 is only a free-format message between two banks: it can confirm what a bank is willing to say about its customer, but it never moves money and never creates a payment obligation.

This guide is written by Vanguard Verify (by Vanguard Trade Capital, Dubai), an independent checking service for commodity buyers, brokers and suppliers. We are not the buyer, the seller or their broker.

What an MT799 is — and what it is not

MT799 is a SWIFT free-format message in the trade (category 7) series. Banks use it for things like pre-advising a letter of credit or confirming information about a customer. Because the text is free-format, its value depends entirely on what the sending bank actually wrote and whether your own bank received it through SWIFT.

An MT799 is not a payment, not a guarantee and not a letter of credit. If money has to be committed, that is done with instruments such as a documentary letter of credit (MT700) or a guarantee or standby letter of credit (MT760). See our guide MT760 vs MT799 for the difference.

The basic rule in any commodity deal: the buyer gives proof of funds (POF); the seller gives proof of product (POP). Both sides prove something, and both proofs should be confirmable through banks or independent inspectors — not through attachments.

The 7 red flags of a fake MT799 proof of funds

1. It arrives as a PDF, screenshot or Word file.

SWIFT messages travel between banks over the SWIFT network. A seller or broker never receives a "real MT799" by email or WhatsApp. A file showing SWIFT headers, codes and stamps is just a document — anyone can type one.

2. Someone asks for a fee to "send", "receive", "release" or "lease" it.

Requests for transmission fees, "conduit" fees, "receiver bank charges paid upfront" or payments to a "provider" who will issue the MT799 are among the clearest warning signs. A buyer with real funds asks its own bank; it does not buy a message from a third party.

3. It claims the funds are "blocked", "reserved" or "guaranteed" for you.

Wording like "funds blocked for 30 days in favour of the seller" or "irrevocable proof of funds" inside an MT799 does not create any obligation you can enforce. If someone relies on that wording to rush you into issuing documents, treat it as a red flag.

4. The bank details do not match.

The bank name, branch, BIC (SWIFT code), country and account holder name should all agree with each other and with the buyer's company. A BIC that does not exist in SWIFT's public BIC search, or a bank in a country unrelated to the buyer, needs a clear explanation.

5. The account holder is not the buyer.

If the POF is in the name of an individual, a "fund manager", a "mandate" or a different company, the buyer has not proved anything about its own money.

6. The amount does not fit the deal.

Very large round numbers (for example hundreds of millions for a trial shipment) or a balance far bigger than the buyer's visible size of business are typical of recycled or invented POFs.

7. You are told not to contact the bank.

"Do not call the bank, it will cancel the deal" or "the bank officer only speaks to the mandate" are refusals to be checked. A real buyer expects its bank to be contacted through proper channels.

6 practical checks before you rely on any POF

1. Check the buyer company first. Look it up in the official company register of its country: legal name, registration number, date, status and declared activity. Confirm the signatory appears in the register or on the company's own website.
2. Ask for the POF route, not the file. Ask the buyer to have its bank send the message to your bank (or the seller's bank) over SWIFT. The receiving bank's trade finance team can tell you whether a message actually arrived.
3. Check the BIC yourself. Use SWIFT's public BIC search and the bank's official website. Do not use contact details printed on the document.
4. Call the bank using details you find yourself. Ask the bank's trade finance or verification desk to confirm the reference, date and sender.
5. Read the wording. Note exactly what the message says. "Our client has sufficient funds" is a statement, not a commitment. Commitment comes later, through an LC or another bank instrument.
6. Match the POF to the deal stage. A POF supports a serious enquiry; payment security comes from the LC or guarantee. Never issue POP, release seller documents or pay anything based on a POF alone.

Red flags (quick list)

• POF sent as an attachment, screenshot or "copy of MT799".
• Any fee to send, receive, release or lease a SWIFT message.
• "Blocked funds", "reserved for seller" or "irrevocable POF" language.
• Bank name, BIC, country and account holder that do not match.
• Account holder is not the buyer company.
• Amount out of proportion to the deal or to the buyer's business.
• "Do not contact the bank."
• Free email address, look-alike domain or WhatsApp-only contact.
• Pressure: "issue your FCO and POP today or the funds are released."

Example (illustrative only — names and details invented)

A supplier of urea receives an LOI from a buyer group, with a PDF titled "MT799 Proof of Funds" showing 250 million euros "blocked for 15 banking days". The account holder is a private individual, not the buyer company, and the bank is in a third country. The buyer's broker asks the supplier to issue an FCO and POP the same day and says the bank "must not be called". The supplier's bank confirms no SWIFT message has been received. The supplier replies that it will proceed only after a bank-to-bank POF and an LC draft. The buyer side goes quiet. No documents were released and nothing was paid.

FAQ

Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This guide is general information, not legal or financial advice.