Payments Confessional

Michelle Gramitt - Global Head of USD Payment Operations

Carol Calabrese – USD Client Operations

Aengus O’Conner – Client Operations Department Manager

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Speaker Information Michelle Gramitt Global Head of USD Payment Operations Citi Treasury and Trade Solutions

Ms. Gramitt an industry leader in the US Dollar Clearing Payment Operations space with over 15 years of experience managing same-day operations in both strategic and tactical roles. Her current responsibilities include compliance with guidelines from the Office of Foreign Asset Control (OFAC), providing Product Processor optimization, and managing USD Investigations globally.

Ms. Gramitt is a proven leader with identifying and implementing strategic yet practical solutions to tackle challenges in the industry. She maintains a client-focused strategy by understanding customer needs and teaming with functional partners to deliver a distinct client experience. Her proactive and consultative approach has yielded significant improvements in Key Performance areas such as straight-through processing and minimized timeframes for OFAC dispositioning.

Ms. Gramitt is a respected people manager with a record of motivating and aligning teams to get results. She continuously liaises with global cross-functional partners in Product, Client Operations, Sales, Technology, Compliance, and HR to develop market-leading strategies, create efficiencies, and to offer client focused solutions.

Additionally, Ms. Gramitt enjoys volunteering in the community and is an active supporter of Junior Achievement, Habitat for Humanity, and the United Way. She serves as Co-chair of the Annual Holiday “Santa” Family Adoption raising over $16,000 for in-need families to celebrate the holiday season.

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Speaker Information Michelle Gramitt USD Client Operations Citi Treasury and Trade Solutions

Carol is currently a Vice President within TTS Client Operations, North America. Carol’s responsibilities include, on and offshore management of 150 team members supporting numerous facets of USD Clearing.

Carol is a key stakeholder in various client experience initiatives, working to continuously liaise with global cross-functional partners in Product and Service on developing market-leading strategies, creating efficiencies, and offering client-focused solutions. Carol serves as an escalation point for Global Payment Operations with the purpose of mitigating customer impact and business exposure.

Over the course of almost four years, Carol has participated in a number of initiatives supporting client experience. She actively encourages her teams to “think outside the box” supporting empowerment to identify opportunities that will result in streamlined processes and enhanced client experience. To date, through the efforts of Carol and her teams, roughly 100+ projects have been completed, yielding a combined FTE save of approximately -38 and increased revenues within USD Product of $1.4MM.

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Speaker Information Aengus O’Conner Client Operations Department Manager Citi Treasury and Trade Solutions

Aengus is responsible for the day to day management of the TTS Client Operations Department, incorporating Operations, Customer Service and Investigations, inclusive of High Value Clearing, CLS, Netting, Global Liquidity products and the EMEA Financial Institution client group.

Aengus is based in Dublin, Ireland and manages a team of over 200 Client Operations specialists committed to delivering an optimum Client Experience via Straight-Through Processing and timely resolution of enquiries. Since joining Citi in 1998 Aengus has held a number of positions across Client Operations, overseeing the implementation of regulatory changes, development of new business and workforce optimization.

Aengus has previously worked with the Irish National Consumer Agency in a voluntary capacity, developing a course curriculum for delivery to employees in workplaces as to how better to manage their personal finances.

Best Communication Practices

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Quick reference for expediting your communication with Citi.

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50,000+ inquiries are resolved monthly by

Citi’s Investigations Teams

Follow-the-Sun

service model

provides 24x6

support

4 Tips to Improve your Experience

1. Use standard MT199 SWIFT

messages to communicate with

Service team.

2. MT192/292 for cancellations

3. Engage with your dedicated FI Service

Professional

4. Keep a log of discussions and

documents for easy reference

5. Respond quickly to requests for

information from Citi Service Teams to

keep the case moving

Citi’s Client Experience Model facilitates

Operations-to-Operations connection

between us and our banks clients

Non-Financial Message Formatting

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Proper message formatting for investigations-related messaging will facilitate the timely processing of your requests.

MTn92 Cancellation Messages

:20: Transaction (1 line, 16 characters

per line)

:21: Related Reference Number

An additional reference number (1 line,

16 characters per line)

:11S: Message Type and Date of

Original Payment

This is the message type (i.e. bank or

customer transfer) and date of the

payment to be cancelled (line 1, 3

characters, line 2 , 6 characters)

:79: Narrative Description of Original

Message

This can be a copy of the original

payment or any other useful information

about the cancellation/recall (50 lines,

35 characters per line)

Sample MT192 Message MTn99 Free Format Messages

:20: Transaction Reference Number

A reference number given be the sender

(1 line, 16 characters per line)

:21: Related Reference Number

An additional reference number (1 line,

16 characters per line)

:11S: Message Type and Date of

Original Payment

This is the message type (i.e. bank or

customer transfer) and date of the

payment to be cancelled (line 1, 3

characters, line 2 , 6 characters)

:79: Narrative

Free format text message that is being

relayed to the receiver of the message

(50 lines, 35 characters per line)

MTn92 Cancellation Messages

10CITIUS33CXXX53036

10CITIGB2LAXXX76152

192 02

:20:ABC123REF

:21:XYZPAYMENTREF

:11S:202

160808

:79:PLEASE URGENTLY CANCEL

OUR BELOW MT 202

DATED 160808. UNDER OUR

REFERENCE

XYZPAYMENTREF

10CITIUS33CXXX53036

10CITIGB2LAXXX76152

192 02

:20:ABC123REF

:21:XYZPAYMENTREF

:79:ATTN INVESIGATIONS TEAM

WE SENT THE ABOVE PAMENT

UNDER OUR REFERENCE

XYZPAYMENTREF VALUE

DATED 08 AUG 2016 CAN YOU

AMEND THE PAYMENT DETAILS

TO READ AS FOLLOWS

PURPOSE OF PAYMENT:

PERSONAL REMITTANCE

Non-Financial Message Keywords

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Including keywords and payment details in your messages to Citi can help us action your inquiry more quickly.

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Key Payment Details to Include:

Amount

Value Date

Sender’s References (Field 20)

Citi’s Reference (Field 21)

Keyword(s) for action

CHIPS SSN (if applicable)

Fed IMAD (if applicable)

Sample MT199 Message

10CITIUS33CXXX53036

10CITIGB2LAXXX76152

192 02

:20:ABC123REF

:21:XYZPAYMENTREF

:79:ATTN INVESIGATIONS TEAM

WE SENT THE ABOVE PAMENT UNDER OUR REFERENCE

XYZPAYMENTREF VALUE DATED 08 AUG 2016 IN THE

AMOUNT OF 1000.00 USD CAN YOU AMEND THE PAYMENT

DETAILS TO READ AS FOLLOWS

PURPOSE OF PAYMENT: PERSONAL REMITTANCE

Cancellation Request Beneficiary Claims Non-

Receipt Unable to Apply Credit Fraud-Related Payment Amendment Return of Funds

Sent in error Non receipt Unable to apply Fraud Amend Return funds

Cancel Confirm credit Not able to apply Fraudulent Read as Authority to debit

Stop payment BCNR Need additional details

Scam Please change Authorize you to debit Recall Account not credited More information required

Payment Formatting

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Fields 56A, 57D, and 58/9 are the most common sections in need of repair for MT103 and MT202 SWIFT messages.

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SWIFT Formatting

: 20: Transaction Reference Number

A reference number given be the sender (1 line, 16 characters per line)

: 21: Related Reference Number

An additional reference number (1 line, 16 characters per line)

: 32: Date & Amount

Date and amount of the payment instruction (1 line, 24 characters per line)

: 50: Ordering Customer

This is the originator of the payment instruction (4 lines, 35 characters per line)

: 52: Ordering Institution

This is the originator’s financial institution (1 line, 11 characters per line)

: 53: Sender’s Correspondent

This is the correspondent bank for the ordering institution (4 lines, 35 characters per

line)

: 56A: Intermediary Bank

This is the correspondent bank for the beneficiary bank(4 lines, 35 characters per line

(1 line, 11 characters per line)

: 57D: Account with Institution

This is the beneficiary bank (1 line, 11 characters per line)

: 58/9:Beneficiary Institution/Customer

This is person or institution for whom the payment is intended (4 lines, 35 characters

per line)

: 70: Details of Payment

Additional payment details can be placed here (4 lines, 35 characters per line)

: 72: Sender to Receiver Information

Additional payment details, such as purpose of payment, or other information from the

sender for the beneficiary

(4 lines, 35 characters per line)

{1:F01CITIUS33GXXX1865234806}

{2:O1031010150504CITIUS33AXXXM92648

41110N}

:20:Sender’s Reference Number

:32A:150504USD3126,64

:33B:USD3126,64

:50K:/10987654321010

John Smith

123 Main Street

Small Town, USA

123456

:53B:/JOHNBANK

:57D://FW021000089

Citibank NY

:59:/12345678

Jane Doe

:71A:SHA

MT103 (Customer Payment)

{1:F01CITIUS33AXXX0000000000}{2:I202O

RBCINBBXIBDN}

:20: ABC123REFERENCE

:21:XYZREFERENCE

:32A:150505USD12666,

:52D:/JOHNBANK

John Smith’s Bank

123 Big City Boulevard

Big City, USA

57D://FW021000089

Citibank N.Y.

:58D:/123456789

Jane Doe Bank Inc.

567 Metropolis Drive

Little City, USA

:72:/ACC/Big important payment for

//invoice

MT202 (Bank Payment)

Tips to increase controls against fraud

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Cyber-related attacks on banks are increasing, resulting in the issuance of fraudulent

international payments around the world. However, attacks are not limited to cyber-

crime or system breaches, and often criminals incorporate more traditional means of

fraud.

Now more than ever,

it is critical that

your bank has a

comprehensive set of

layered information

security and fraud

controls in place that

account for multiple

breach scenarios.

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Important note: The above best practices are by no means comprehensive.

Please also review the security guidance that SWIFT has issued for its clients,

available on www.SWIFT.com.

Your firm should familiarize itself with the appropriate security guidance and

ensure they are appropriately accounted for and executed in your information

security policies and procedures.

Some basic checks that can reduce your risk exposure

Action Steps for Fraudulent Activity

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In the event you or your client have been compromised, the following actions should be taken:

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Step One: Send urgent MT199 or MTn92 /FRAD/ with relevant payment details (example below)

Step Two: Immediately follow-up with a phone call to your Citi contact

*provide further details on the fraudulent attack (i.e. unique payment, multiple transactions,

attack within your infrastructure or on your clients side, etc.)

Step Three: Maintain contact with Citi to receive and provide frequent updates

Sample MT199 Message

10CITIUS33CXXX53036

10CITIGB2LAXXX76152

199 02

:20:ABC123REF

:21:XYZPAYMENTREF

:79:ATTN INVESIGATIONS TEAM

WE SENT THE ABOVE PAMENT UNDER OUR REFERENCE

XYZPAYMENTREF VALUE DATED 08 AUG 2016 PLEASE BE

ADVISED THIS IS A FRAUDULENT PAYMENT WE ARE

REQUESTING IMMEDIATE CANCELLATION OR RECALL

Fraud-Related Key Code Words

Fraud Deceptive Cheat Falsified

Fraudulent Fake Imposter Counterfeit

Scam Sham Swindler Fiddle

Fraud Prevention – Trainer Toolkit

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TTS has developed a Fraud Prevention Toolkit which includes a fraud overview, case studies, and many more features.

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https://www.citibank.com/tts/sa/emea_marketing/training/cyber_security/toolkit.html

Fraud Overview

and Articles

Sector – Specific

Information

Case Studies, Alerts

and Training Materials

Guides, Best

Practices and

Manuals

Link:

TTS Fraud Prevention – Trainer Tool Kit

Sanctions Screening

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We can’t disclose our methods for sanctions screening, but we can provide some tips for avoiding false hits.

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3 Tips to Avoid False Sanctions Hits

1. Use beneficiary’s FULL name,

including any middle name or

initial and date of birth if available

2. Use beneficiary’s FULL address,

including post code, street name,

etc.

3. Include payment details in Field

70

The more specific your details are, the

faster our Sanctions Screening teams

can validate against various lists and

release your payment for processing

509,000

16,300

2,500

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are reviewed by

Sanctions L1

3.2% of all wires are stopped for

compliance review

100+ managed exceptions

are implemented weekly

to reduce false positives

2.5% Hit Rate Reduction

year-over-year rate reduction

allows for the redeployment of

resources to payment repair

Multi currency

wires are

processed daily

are escalated to

Sanctions L2

are held for

Investigation