One of the most popular posts on this blog is the MT940 Format Overview. The Mt940 overview has prompted all kinds of questions and one of the most recurring requests is for a list of the Transaction Type codes – the official term for these are the SWIFT Transaction Type Identification Codes or sometimes they are called Business Transaction Codes (BTC). This post gives you a quick rundown of the what the Transaction Type code is and the codes that you should expect to see in your MT940 bank statement.
Why do i need to bother about Transaction Type Codes?
As the name suggests the Transaction Type Codes help to identify the type of transaction being reported on the bank statement. These codes help your Treasury team identify the transaction on the bank statements and in turn enables them to allocate the transaction appropriately during the bank statement posting and reconciliation process.
Remember the bank statement indicates everything that is happening on a given account, and it goes without saying that knowing what each transaction represents is critical. Especially given the increase in actual, and attempted, fraudulent payments. But as the recent SWIFT related hacks revealed, with the right malware even a bank statement – or the bank statement printed report – can be manipulated.
Where can i find the Transaction Type Code
These Transaction Type codes are indicated in tag 61, sub-tag 6, and are prefixed with either “N” or “F”
- 6!n Value Date (YYMMDD)
- [4!n] Entry Date (MMDD)
- 2a Debit/Credit Mark
- [1!a] Funds Code (3rd character of the currency code, if needed)
- 15d Amount
- 1!a3!c Transaction Type Identification Code
- 16x Customer Reference
- [//16x] Bank Reference
- [34x] Supplementary Details (this will be on a new/separate line)
What Transaction Type Codes are being used?
This is what you’re really looking for – I hope this helps you understand the codes being used and what they mean:
- Transaction Type Code – Description
- BNK – Securities Related Item – Bank fees
- BOE – Bill of exchange
- BRF – Brokerage fee
- CAR – Securities Related Item – Corporate Actions Related (Should only be used when no specific corporate action event code is available)
- CAS – Securities Related Item – Cash in Lieu
- CHG – Charges and other expenses
- CHK – Cheques
- CLR – Cash letters/Cheques remittance
- CMI – Cash management item – No detail
- CMN – Cash management item – Notional pooling
- CMP – Compensation claims
- CMS – Cash management item – Sweeping
- CMT – Cash management item -Topping
- CMZ – Cash management item – Zero balancing
- COL – Collections (used when entering a principal amount)
- COM – Commission
- CPN – Securities Related Item – Coupon payments
- DCR – Documentary credit (used when entering a principal amount)
- DDT – Direct Debit Item
- DIS – Securities Related Item – Gains disbursement
- DIV – Securities Related Item – Dividends
- EQA – Equivalent amount
- EXT – Securities Related Item – External transfer for own account
- FEX – Foreign exchange
- INT – Interest
- LBX – Lock box
- LDP – Loan deposit
- MAR – Securities Related Item – Margin payments/Receipts
- MAT – Securities Related Item – Maturity
- MGT – Securities Related Item – Management fees
- MSC – Miscellaneous
- NWI – Securities Related Item – New issues distribution
- ODC – Overdraft charge
- OPT – Securities Related Item – Options
- PCH – Securities Related Item – Purchase (including STIF and Time deposits)
- POP – Securities Related Item – Pair-off proceeds
- PRN – Securities Related Item – Principal pay-down/pay-up
- REC – Securities Related Item – Tax reclaim
- RED – Securities Related Item – Redemption/Withdrawal
- RIG – Securities Related Item – Rights
- RTI – Returned item
- SAL – Securities Related Item – Sale (including STIF and Time deposits)
- SEC – Securities (used when entering a principal amount)
- SLE – Securities Related Item – Securities lending related
- STO – Standing order
- STP – Securities Related Item – Stamp duty
- SUB – Securities Related Item – Subscription
- SWP – Securities Related Item – SWAP payment
- TAX – Securities Related Item – Withholding tax payment
- TCK – Travellers cheques
- TCM – Securities Related Item – Tripartite collateral management
- TRA – Securities Related Item – Internal transfer for own account
- TRF – Transfer
- TRN – Securities Related Item – Transaction fee
- UWC – Securities Related Item – Underwriting commission
- VDA – Value date adjustment (used with an entry made to withdraw an incorrectly dated entry – it will be followed by the correct entry with the relevant code)
- WAR – Securities Related Item – Warrant
Ref: Deutsche Bank MT940/942 Format Specifications
I see a Transaction Code in my MT940 that isn’t listed above, what is it?
Go and talk to your bank and ask them what the code refers to. Ask the bank if they are using any other bank proprietary transaction type codes, and if so, what are they? And what do they refer to.
Hope that helps folks!