IBM MQ MFT Agents when transferring files, publish the status of transfer to SYSTEM.FTE/Log topic on a coordination queue manager. The Logger component of MFT captures the published transfer information and writes to a storage like a database (DB2 and Oracle) or files. This stored information can be used for audit purposes later.
Prior to MQ v9.0.4, Logger, both database and file type, must be run on the same machine as the coordination queue manager or use alternate options as described here. This is because MFT database logger component uses XA transactions, coordinated by queue manager, to write transfer information to a database. Applications must be connected in server bindings mode to queue manager when a queue manager is coordinating XA transactions.
This has changed a bit, from MQ v9.0.4 on-wards, File type logger can now be configured to run using a client mode connection to coordination queue manager running on MQ Appliance or a software based queue manager running on a remote machine. More details here.
Database type logger is still required to be run with server bindings connection.