The Truth About Proof of Funds (MT799): What Sellers Actually See in 2026
The Death of the Screenshot
In the digital age, many buyers mistakenly believe that a PDF bank statement, a smartphone screenshot, or a “Proof of Life” video constitutes valid Proof of Funds (POF). In the high-stakes 2026 commodity market, these documents are worse than worthless—they are red flags for fraud. Legitimate refineries and allocation holders do not operate on visual trust; they operate on Bank-to-Bank Authentication.
A screenshot proves nothing; it can be edited in seconds using basic software. To secure a multi-million dollar sugar allocation, you must understand the mechanics of the SWIFT network. This guide deconstructs why the Proof of Funds MT799 is the only “truth” recognized by institutional sellers.
In the sugar trade, Proof of Funds MT799 is an authenticated, encrypted message sent via the SWIFT network. Unlike a static bank statement, an MT799 provides a bank-guaranteed confirmation of a buyer’s liquidity or “Ready, Willing, and Able” (RWA) status, allowing the seller’s compliance team to move forward with a contract.
1. The “Screenshot” Plague
If you email a PDF bank statement to a major Brazilian sugar refinery, your inquiry will likely be deleted. Compliance departments at the “Big 4” mills treat unsolicited bank statements as a security threat.
The Three Fatal Flaws of Manual POF:
- High Forgery Risk: With modern AI and editing tools, bank statements are the most forged documents in the commodity sector.
- Security & Privacy: Sending unredacted banking details over open email servers is a violation of corporate security protocols.
- Temporal Irrelevance: A statement only shows the balance at a specific second in the past. It provides zero assurance that the funds haven’t been moved or pledged elsewhere by the time the seller reads the email.
2. The SWIFT MT799: The Institutional Standard
The MT799 is a “Free Format Message” sent between financial institutions. It is an authenticated communication that relies on a cryptographic key exchange. When Bank A receives an MT799 from Bank B, they know with 100% certainty that the message is genuine and the sender is a regulated bank officer.
Comparative Analysis: Manual vs. SWIFT
| Feature | PDF / Screenshot Statement | SWIFT MT799 / MT199 |
|---|---|---|
| Authentication | Visual Only (Low) | Cryptographic (Absolute) |
| Cost | Free | Bank Fees ($50 – $500) |
| Institutional Trust | Zero | High |
| Compliance Path | Rejected as “Amateur” | Proceeds to Allocation |
Manager’s Takeaway: The small fee your bank charges for an MT799 is an investment in your credibility. It proves you have a professional relationship with your bank.
3. Blocked Funds vs. Capability
In your Proof of Funds MT799 strategy, you must distinguish between “showing” money and “locking” it. Sellers generally ask for one of two things:
Ready, Willing, and Able (RWA)
Commonly sent as an MT799, this message confirms the buyer has the financial capacity to execute the specific contract amount. The funds remain liquid and available for the buyer’s use, but the bank confirms the buyer’s standing.
Blocked Funds
Stricter and rarer in the initial stages. The buyer instructs the bank to freeze the funds in their own account for a set duration (e.g., 15 days) in favor of the seller’s verification. This is typically reserved for high-volume spot deals where immediate performance is required.
4. Red Flags: Video POF and Security Risks
As fraud becomes more desperate in 2026, you may encounter bizarre requests that fall outside the SWIFT standard. These are immediate disqualifiers.
A seller or broker asks you to log into your bank account while screen-recording or via a “shared screen” session. NEVER DO THIS. This is a massive security breach designed to capture your login credentials or session tokens. Real refineries only talk bank-to-bank.
Other 2026 Red Flags:
- Satoshi Tests: Requesting a small crypto transfer to prove “wallet activity” has no place in a $5M sugar trade.
- POF Before Contract: Any seller asking for an MT799 before they have issued a draft contract is likely “phishing” for your banking coordinates to build a fake buyer profile.
5. The Verity Deal Authentication Protocol
At Verity Deal, we simplify the verification process for high-net-worth end buyers:
- Secure Banker Email: If an MT799 is too cumbersome for a small first deal, we can often facilitate a “Secure Banker Email” from a verified corporate domain (e.g., @jpmorgan.com) to a seller’s compliance officer.
- Pre-Vetting: We review your financial standing privately so that your banking info only hits the refinery’s desk when a deal is 90% certain.
- Instrument Alignment: We ensure your POF verbiage matches the requirements of the final DLC (MT700) to ensure a smooth transition from proof to payment.
6. Frequently Asked Questions
Does the MT799 transfer my money?
No. The Proof of Funds MT799 is a “Free Format” information message. It is purely for communication. No funds are moved until an MT103 or a draw-down on a Letter of Credit occurs.
Can I use a “Tear Sheet” from my investment account?
Only if your bank is willing to verify it via a standard bank-to-bank channel. A physical tear sheet is still considered a static document and is often rejected by Brazilian mills.
When exactly should I issue the MT799?
The standard sequence is: 1. Sign the Contract (SPA) -> 2. Issue MT799 POF -> 3. Seller issues 2% Performance Bond -> 4. Buyer issues Operative DLC.
