Did you ever solve this? I came across this problem myself and found out I needed to use (just like the error says) a different format name.
The strange thing was that if I set UseAuthentication property using the MQ certificate, then it worked. But if I also wanted to set UseEncryption, then it did not work.
You do not specify your queue/server setup/formats, but I suspect you're trying to send from one machine to another machine's public queue within the same domain, using DIRECT formatname? As the MQ Manager will use the domain AD to lookup the certificate and queue details, it raises an exception as the format name is invalid (not the same as specified in the AD). So instead of using the direct format, use the queue ID to define the formatname. I switched this:
"FormatName:Direct=TCP:111.222.1.22your_public_queue"
with this:
"FormatName:PUBLIC=7EB2A53C-7593-462C-A568-5A0EFA26D91D"
Now it worked. You can find your queue ID by right-clicking your queue on the receiver machine and then go to Properties->General and see the value specified in field "ID".
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