“MT799 blocked funds” is a market phrase that gets used as if it were a standard banking deliverable. MT799 is a SWIFT FIN message type used for free-format bank-to-bank narrative communication. A narrative message is not, by itself, the legal act of encumbering funds.
When the request involves a third party “showing” proof of funds on your behalf, the difficulty increases sharply. The request is no longer about formatting. It becomes a question of authority, confidentiality, liability, and economic incentives.
A genuine restriction on funds normally ties to documentation and bank controls, not to a narrative statement sent to another party. Examples include a pledged deposit, an escrow arrangement, a lien, or an internal restriction supported by signed mandates. Each has an owner, a purpose, a term, release conditions, and liability allocation.
Those are mismatched expectations. Banks tend to decline or dilute them.
Many traders ask a third-party liquidity provider to “issue blocked funds” on their behalf. In practice, that means asking someone else to immobilize capital, accept reputational and compliance exposure, and tolerate ambiguous reliance by unknown recipients. Few serious capital providers will do that without a settlement-linked rationale and compensation.
| Constraint | Why It Stops The Request |
|---|---|
| Authority and control | Only the account holder can encumber funds. Intermediaries cannot create a restriction with a message request. |
| Confidentiality | Banks do not confirm account restrictions to third parties without explicit authorization and a narrow purpose. |
| Liability and reliance | “Blocked” language can be interpreted as an assurance. Banks avoid statements that can be used to claim damages. |
| KYC and AML | Third-party “show funds” structures trigger beneficial ownership review and source-of-funds scrutiny, especially when settlement is unclear. |
| Economics | Immobilizing liquidity has a cost. Without a clear payoff, freezing funds is irrational for the capital provider. |
Freezing capital for 90 days is not a neutral request. It removes optionality and yield. A simple reference point: immobilizing USD 10,000,000 for 90 days at a 5% annual return implies an opportunity cost of roughly USD 125,000 (10,000,000 × 0.05 × 90/360). That ignores admin burden, legal review, and risk premium.
That trade is unattractive. Expect refusal.
The issue is not that a bank cannot write words. The issue is what those words imply. Common requests ask for statements that resemble an undertaking, a guarantee, or a firm commitment to transfer funds. Banks usually respond with qualifiers that strip the message of the “blocked funds” promise the requester wanted.
| Typical Request Language | Bank Interpretation |
|---|---|
| “Funds are blocked for 90 days” | Looks like a confirmation of an enforceable encumbrance that third parties can rely on. |
| “Free and clear, unencumbered” | Overbroad assurance. Banks avoid sweeping claims about competing rights and intra-day movement. |
| “Available for immediate transfer” | Resembles a transfer commitment. Banks keep narrative messages away from commitment language. |
| “Irrevocable and unconditional” | Instrument-grade language that triggers legal review and often a refusal. |
The phrase persists because it sounds technical and bank-adjacent while sidestepping settlement mechanics. In many cases, it is used as a substitute for real execution steps: documented collateral, instrument issuance, and enforceable controls. That is why you see it frequently in informal online channels and promoter-driven deal flow.
If a transaction needs assurance, use an instrument designed to provide assurance. A standby letter of credit is a contingent payment undertaking with defined presentation conditions. A demand guarantee serves a similar function under guarantee practice. Escrow or pledged deposit structures create actual control of funds under documentation.
If the counterparty only needs non-committal comfort, use a narrow reference or process confirmation routed through proper channels. If the counterparty needs an undertaking, move to a standby, a guarantee, or a documented control structure.
A request for “MT799 blocked funds” using someone else’s liquidity for 90 days, especially where settlement is not intended, is a high-friction ask. The incentives do not line up. The wording risk is material. Banks and serious liquidity providers tend to avoid it. In most cases, the request is redundant compared to bank-grade alternatives that actually support execution.
If a counterparty is requesting “MT799 blocked funds,” share the exact request wording, the deal purpose, the parties, and the target timeline. We will revert with an executable approach aligned with regulated counterparties and standard banking practice.
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