Where MT940 comes from
MT940 is one of the SWIFT MT (Message Type) formats. The "9" category covers cash management and customer status messages, and MT940 specifically is the "Customer Statement Message." It reports transactions posted to an account over a statement period, typically end-of-day.
Because it is a SWIFT standard, MT940 is used widely across Europe and by corporate banking systems worldwide. It is a plain-text file, so you can open it in any text editor, but the content is organized into coded fields rather than plain sentences.
A related message, MT942, carries interim or intraday transaction reports. MT940 is the closed, end-of-day statement equivalent to a paper statement for a given period.
How an MT940 file is structured
An MT940 file is made up of tagged fields. Each field starts with a colon, a tag number, another colon, and then the value. The key tags you will see include :20: for the transaction reference, :25: for the account identification, :28C: for the statement and sequence number, and :60F: for the opening balance.
Individual transactions appear in :61: statement lines, each followed by an optional :86: field that holds descriptive information such as the counterparty name, payment reference, or narrative text. The :62F: tag gives the closing balance, and :64: shows the available balance.
The :61: line packs several data points into one string: value date, entry date, debit or credit mark, amount, transaction type code, and bank reference. This compactness makes MT940 efficient for software to parse but hard to read at a glance.
One practical wrinkle is the :86: field. SWIFT loosely specifies its structure, so different banks format the narrative differently. Some use structured sub-fields; others put free text. Software that imports MT940 often needs bank-specific rules to read :86: reliably.
What MT940 does and does not include
MT940 gives you posted transactions, opening and closing balances, dates, amounts, and references. That is enough to reconcile an account and match transactions to invoices or bills.
It does not carry rich remittance detail the way newer XML formats do. The CAMT.053 format, part of the ISO 20022 standard, is the modern successor and can hold more structured payment information. Many banks now offer CAMT alongside or instead of MT940, though MT940 remains in heavy use.
MT940 also assumes one account per statement message. If you manage several accounts, expect a separate statement section or file per account. Balances are stated in the account currency, encoded within the balance tags.
How to use an MT940 file
The usual workflow is to download the MT940 file from your bank's online portal, then import it into accounting or treasury software that supports the format. Many European accounting packages and ERP systems accept MT940 directly.
If your software does not accept MT940, or if you use tools built around OFX, QFX, QBO, or CSV, you will need to convert the file. Conversion tools read the tagged fields and map them into columns: date, description, amount, debit or credit, and balance.
When converting, pay attention to date format, the debit/credit indicator in the :61: line, and how the :86: narrative is split into description columns. Verify the opening and closing balances after import to confirm nothing was dropped or duplicated.
If you only need to review the file, open it in a text editor and look for the :60F: opening balance, the :61: and :86: transaction pairs, and the :62F: closing balance. That gives you the shape of the statement even without special software.