MT700 Field 58 — Contradictions with Other Fields

Introduction

SWIFT MT700 Field 58 identifies the confirming bank — the institution that adds its irrevocable undertaking to the documentary credit. When Field 58 contains information that contradicts other fields in the MT700 message, the confirmation arrangement becomes uncertain, creating risk for the beneficiary and the confirming bank alike.

Failure Modes

1. Field 58 Names a Bank Not Present in Field 41 (Available With/By)
Field 41 specifies where the credit is available. If Field 58 names a confirming bank that is not the same institution identified in Field 41, the beneficiary may present documents to the wrong bank.

2. Field 58 BIC Code Resolves to Wrong Entity
A typographical error in Field 58's BIC code may direct the confirmation request to an unintended institution, creating confusion about who holds the confirmation obligation.

3. Field 58 Contradicts Field 57 (Advise Through)
If Field 57 names the same bank as Field 58, the intermediary and confirming bank functions overlap. This dual role can create conflicts of interest and processing confusion.

4. Field 58 Names a Bank in a Jurisdiction Where Confirmation Is Restricted
Some banks operate under regulatory restrictions that limit their ability to add confirmations in certain currencies or jurisdictions. If Field 58 names such a bank without accounting for these restrictions, the confirmation may be unenforceable.

Resolution Steps

1. Verify Field 58 BIC codes against the SWIFT directory before transmitting the MT700. Confirm the code resolves to the intended confirming bank.

2. Cross-reference Field 58 with Field 41 to ensure the confirming bank matches or includes the institution named as available with/by.

3. Check that Field 58 bank has confirmation authority for the credit's currency, jurisdiction, and amount. Confirm with the bank directly if there is any doubt.

4. When Field 58 and Field 57 name the same bank, confirm with the bank that it accepts both roles and document its acknowledgment.

5. Upon receiving an MT700 with a Field 58 contradiction, notify the issuing bank immediately via MT799 and request an amendment before processing the confirmation.

6. Maintain a database of confirmed and unconfirmed credits that cross-references Field 58 with the bank's confirmation capacity and historical performance.

7. Include Field 58 validation in your pre-transmission quality assurance process, alongside other bank-identification fields.

Conclusion

Field 58 contradictions undermine the confirmation arrangement that protects the beneficiary under UCP 600. They are most commonly caused by BIC code errors, jurisdictional limitations, or confusion between Field 58 and other bank-identification fields. Rigorous validation and direct communication with the confirming bank are essential to maintaining the integrity of the confirmation.

Frequently Asked Questions

Q1: Is Field 58 mandatory in an MT700?
No. Field 58 is optional and is only completed when the credit is confirmed. If Field 58 is blank, the credit is unconfirmed.

Q2: Can Field 58 name more than one confirming bank?
No. Field 58 identifies a single confirming bank. If multiple confirmations are required, separate MT700 messages or amendments may be needed.

Q3: What happens if Field 58 names a bank that refuses to confirm?
The issuing bank should seek an alternative confirming bank and send an MT707 amendment to update Field 58. The beneficiary should be notified of the change.

Q4: Can the confirming bank be the same as the nominated bank?
Yes. A nominated bank may also be the confirming bank. In this case, Field 41 and Field 58 may name the same institution.

Q5: How does Field 58 interact with Field 78 (Instructions)?
Field 78 may contain instructions specific to the confirming bank's role. If these instructions contradict Field 58, the confirming bank should seek clarification before acting.

Source Notes

The following sources were consulted as context only:

• Trade Finance Global, "UCP 600 – ultimate 2026 guide" (Jun 2020)
• Trade Finance Global, "SWIFT Messaging Types | TFG 2026 Guide" (Apr 2020)
• ICC, "ICC's new rules on documentary credits now available" (Mar 2023)
• Trade Finance Global, "Understanding MT 720: transfer of a documentary credit" (Jun 2024)
• Trade Finance Global, "ICC briefing addresses the topic of reducing discrepancy rates" (Aug 2022)