swift for corporates · kyc & identity onboarding & formats +2,100 corporates on the...
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SWIFT for Corporates - Do not share without SWIFT's prior consent 2
SWIFT presentation
SWIFT for Corporates - Do not share without SWIFT's prior consent 3
excellence
community innovation
+200countries
What’s SWIFT?
core values
3
a cooperative serving the
financial industry since
1973
integration &
interfaces
messaging
shared
services
pillars built with
and for the
community
3
+12kcustomers connected
worldwide
~3kemployees worldwide
SWIFT for Corporates - Do not share without SWIFT's prior consent 4
Where’s SWIFT?
offices
27Accra
Beijing
Brussels
Dubai
Frankfurt
Hong Kong
Johannesburg
Kuala Lumpur
London
Madrid
Mexico City
MiamiMilan
Moscow
MumbaiNairobi
New York Paris
São Paulo
Seoul
Shanghai
Singapore
Stockholm
Sydney
Tokyo
ViennaZurich
SWIFT for Corporates - Do not share without SWIFT's prior consent 5
BANKS
FUND MANAGERS
Who’s using SWIFT?
MARKET
INFRASTRUCTURES
CLEARING & SETTLEMENT
SYSTEMS
CORPORATES
BROKERS / DEALERS
CENTRAL BANKS
GLOBAL
CUSTODIANS
CSDS
STOCK EXCHANGES
DEPOSITORIES
TRADE REPOSITORIES
SWIFT for Corporates - Do not share without SWIFT's prior consent 6
SWIFT & corporates
SWIFT for Corporates - Do not share without SWIFT's prior consent 7
SWIFT and Corporates – A love story !
KYC & IdentityOnboarding &
Formats
+2,100corporates on the
network
+370are French, 1st market
WW
KYC for
Corporates
Payments, Cash
Management &
Trade
SWIFTgpi for
Corporates
Financial
Crime &
Compliance
SWIFTgpi
SWIFTgpi
SWIFT for Corporates - Do not share without SWIFT's prior consent 8
SWIFTgpi & SWIFTgpi for
Corporates initiatives
SWIFT for Corporates - Do not share without SWIFT's prior consent 9
1 Faster paymentsSame day use of funds*
TraceableEnd-to-end payment tracking
& payment confirmation2
3Transparent feesDeducts and FX 4
Full remittance dataUnaltered reconciliation info
Your company
Beneficiary
gpi
Intermediary
bank
Beneficiary’s bank
Your bank
*Within the time zone of the receiving gpi member
$
Invoice
a1700db1-90b2-4948-83d8-6309c5c34a3d
How gpi works?
RulebookSWIFTgpi
>¥
3900+ Committed banks
840+ Live banks
65+% of SWIFT
cross- border payments sent as gpi
1900+ country corridors
300,000,000,000 USDsent daily via gpi
gpi adoption
SWIFT for Corporates - Do not share without SWIFT's prior consent 10
11
SWIFT gpi is very fast!
SWIFT for Corporates - Do not share without SWIFT's prior consent
38%8%
4%
5%
6%
8%
5%
9%
11%
7%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Within 5 minutes
Between 5 and 15 minutes
Between 15 and 30 minutes
Between 30 minutes and 1 hour
Between 1 and 2 hours
Between 2 and 4 hours
Between 4 and 6 hours
Between 6 and 12 hours
Between 12 and 24 hours
More than 1 day
94% within 24h
Cash Management 12
SWIFT GPIDEFINING NEW STANDARD FOR INTERNATIONAL PAYMENTS
BNP Paribas strongly believes in this initiative and has amongst the largest SWIFT gpi footprints with 10 locations
LIVE and more to follow in 2020. Indeed, we believe the adhesion is global and it is critical for banks to join this
initiative to guarantee best-in-class processing of International Payments.
10+ more locations
Cash Management 13
SWIFT GPIDEFINING NEW STANDARD FOR INTERNATIONAL PAYMENTS
SWIFT gpi is finally addressing some key
pain points of cross-border payments to
deliver concrete improvements to
treasurers :
✓ SPEED with same day credit
✓ TRACEABILITY sharing status and confirming credit
✓ TRANSPARENCY on fees, banks, timing and status
The International Payments processing relies on chain of banks
working together. The multiplication of partners multiply the change of
single point of failure. This is being addressed with SWIFT gpi.
Having more than 10+ million cross-border payments per annum
in 130+ currencies and offering a global reach with one of the most
inclusive global Cash Management footprints with presence in 55
countries, it is a mandatory requirement to size such opportunities to
improve service quality for corporates.
Today, all cross-border transactions sent through the LIVE
branches will be respecting the SWIFT gpi SLA, regardless the
channel or currency used.
BNP Paribas made it a priority and invested heavily in parallel in the
renewal of their International Payment infrastructure.
14SWIFT for Corporates - Do not share without SWIFT's prior consent
gpi experience for Corporates
Generation of tracking reference by corporate X
Multi-bank payment initiation & tracking X
Self service tracking in e-banking X
Tracking through support desk =
Speed, transparency, unaltered remittance =
Generation of tracking reference by corporate X
Multi-bank payment initiation & tracking X
Self service tracking in e-banking =
Tracking through support desk =
Speed, transparency, unaltered remittance =
Generation of tracking reference by corporate =
Multi-bank payment initiation & tracking =
Self service tracking in e-banking =
Tracking through support desk =
Speed, transparency, unaltered remittance =
Improve your experience with
international payments through banks
support teams1
Self service web access to the tracker2
Fully integrated tracking trough ERP &
TMS systems3
Cash Management 15
Different channels to get the information on your BNPP gpi outgoing payments →
SWIFT GPIEASY FOR YOU TO ACCESS THE INFORMATION
via BNP ParibasCustomer Support
Via BNP Paribase-banking platform
Via your owner ERP/ TMS (g4C)
You
✓ Send your payment file with your ownUETR
✓ Receive gpi tracker status real-time (MT199/ pain002)
✓ Bank acgnosticLiaise via BNPP with your vendor for more
details of accessible functionalities
Cash Management 16
SWIFT GPIBNP PARIBAS USE CASES FOR CORPORATES : THANKS TO FULL TRANSPARENCY INTO PAYMENT ROUTING, FEES AND
APPLIED FX OF THE SWIFT TRACKER:
INTEGRATE ALL THE TRACKER
INFORMATION IN YOUR ERP/ TMS
BNP Paribas shares to your ERP/TMS vendor
directly and real-time the SWIFT tracker status
messages related to your transactions to integrate directly in the system.
PUSH NOTIFICATIONS TO
YOUR BENEFICIARIES
As you initiate your BNP Paribas transactions, a link is
sent to your designated beneficiaries for them to track
& trace the payment, fostering trust and visibility
with your internal and external counterparties
BNPP SUPPORT IS BETTER EQUIPPED
Each BNP Paribas customer support is better equipped to
answer your questions and track & trace your payments with direct access to the SWIFT
tracker
TRACK & TRACE REAL-TIME & SELF-
SERVICE
Track & trace yourself your transactions real-time in your e-banking platform, either for data crunching, visibility or
investigation
BETTER MANAGEMENT OF
INCOMING
( under development)
BNP Paribas aims to enable you to track & trace incoming flows
with pro-active alerting and smoothen cash
forecasting
SWIFT for Corporates - Do not share without SWIFT's prior consent 17
SWIFT gpi for Corporates Corporate
Receivables Payables
g4C service level agreement rulebook
Inbound TrackingPilot (started Sep 2019)
✓ Payment advice
✓ Tracking of incoming payments
✓ Real time credit confirmation (own account)
✓ Payment insights (time, routing, fees,…)
Pay and TraceLive
✓ gpi payment initiation
✓ Tracking of outgoing payments
✓ Real-time credit confirmation (at bene)
✓ Payment insights (time, routing, fees,…)
Open C2B APIPlanned (Q2 2020)
Standardised and interactive Corporate-to-bank API providing real-time
tracking for Pay and trace and Inbound tracking across SWIFT and
proprietary channels
gpi Payment + UETR
Tracking
Payment
advice
SWIFT for Corporates - Do not share without SWIFT's prior consent 18
gpi principles applied to corporates – Pay & Trace
gpi payments tracker
MT 103 + UETR &
STI:001MT 103 + UETR &
STI:001
TMS/ERP
Ordering corpBeneficiary
Instructing gpi Agent
2
MT 101 + UETR, pain.001 + UETR(s)
1
4MT 199 + UETR & STI:003 / pain.002 + UETR(s) *
g4C confirmations
▪ Delivered to beneficiary bank as non-
gpi
▪ Delivered to beneficiary bank as gpi
▪ Beneficiary has been credited
▪ Transaction was rejected
▪ Payment has left gpi
Corporate generates and includes UETR in the payment
instruction (MT 101 – unitary payment / pain.001 – unitary and
bulk payments)
Bank creates MT103 including UETR generated by the
corporate
Tracker delivers B2C specific confirmations to Instructing bank
Instructing bank relays back to ordering corporate (MT 199* /
pain.002) as-it-happens
2
1
3
*Banks can send pain.002 instead of MT 199 (single transaction confirmation as-it-happens) in
mutual agreement with their corporate pairs. SWIFT will not support testing or perform format
validation in pain.002 in the scope of Early Adopters Phase
3
4
SWIFT for Corporates - Do not share without SWIFT's prior consent 19
gpi principles applied to Corporates – Inbound tracking
gpi payments tracker
MT 103 + UETRMT 103 + UETR
TMS/ERP
Ordering corp
1
MT 199 / API STI:007
g4C confirmations
▪ Payment advice (ordering bank)
▪ Delivery confirmation (at bene bank)
▪ Credit confirmation (at bene account)
▪ Rejections
Payment is initiated in the SWIFT network (MT 103)
Tracker identify g4C beneficiary bank and extracts payment details
Tracker delivers payment advice details to beneficiary bank
Beneficiary bank relays back to beneficiary corporate as-it-
happens (FIN/ ISO)
g4C bene bank Beneficiary
FIN / ISO STI:007
1
2
3
4
23
4Payment
$
Cash Management 20
SWIFT GPIBNP PARIBAS PRIORITIES FOR 2020
INTEGRATE ALL THE TRACKER
INFORMATION IN YOUR ERP/ TMS
BNP Paribas shares to your ERP/TMS vendor
directly and real-time the SWIFT tracker status
messages related to your transactions to integrate directly in the system.
PUSH NOTIFICATIONS TO
YOUR BENEFICIARIES
As you initiate your BNP Paribas transactions, a link is
sent to your designated beneficiaries for them to track
& trace the payment, fostering trust and visibility
with your internal and external counterparties
BNPP SUPPORT IS BETTER EQUIPPED
Each BNP Paribas customer support is better equipped to
answer your questions and track & trace your payments with direct access to the SWIFT
tracker
TRACK & TRACE REAL-TIME & SELF-
SERVICE
Track & trace yourself your transactions real-time in your e-banking platform, either for data crunching, visibility or
investigation
BETTER MANAGEMENT OF
INCOMING
( under development)
BNP Paribas aims to enable you to track & trace incoming flows
with pro-active alerting and smoothen cash
forecasting
Enable service for
incoming
Enable service for
incoming
Enable service for
incomingCreate new services
Continuously expand our gpi country coverage
SWIFT for Corporates - Do not share without SWIFT's prior consent 21
g4C participants
▪ 60+ participants – 60% already live
▪ 8 out of 10 Top Cash Management on
SWIFT
▪ 100+ BICs enabled
SWIFT for Corporates - Do not share without SWIFT's prior consent 22
• Enable instant cross-border experience
• Remove transaction issues upfront
• Reduce exceptions & investigations
Value Proposition
• Increased speed of transfer of funds to the end beneficiary
• Provide best experience to end customers at payment initiation
• Detect and correct non-STP situations before initiating a payment
Service benefits
Beneficiary
Verification
Account and name
Format of accounts
Sanction screening
Fraud and mule accounts
• Beneficiary account exists
• Beneficiary data matches
Payment
Validation
International guide
Static checks
Resolution services
Fee
Prediction
Transaction cost calculator
Pre-Validation initiative
• Required transaction data are
included
• Transaction data are validated
• Transaction data are structured
Beyond g4c – Prevalidation initiative
SWIFT for Corporates - Do not share without SWIFT's prior consent 23
KYC for Corporates
24
SWIFT for Corporates - Do not share without SWIFT's prior consent
What problems are we facing?
58.2% of treasury professionals cite that time spent
on KYC requests is what is most challenging to them*
93%*93% of treasurers say that
responding to KYC requests is
more difficult now than it was 5
years ago
Some corporates have over 2000 bank
accounts and a highly complicated
corporate structure
81% of treasures are concerned about how well
their counterparties protect their KYC data*
53.3% of Corporates have reduced the
number of banks that they work with*
C:\>
!
*Reference: Eurofinance – Solving the KYC conundrum
25SWIFT for Corporates - Do not share without SWIFT's prior consent
KYC named as one of the top challenges
• Data collection is a repetitive process
• Lack of standardisation leads to
manual workflows
• Process carried out across multiple
channels adding to complexity
• Irregular review cycles & schedules
• Lack of transparency
• Increasingly strict regulatory
requirements
• High overall costs for all involved
parties
→ KYC is time-consuming, repetitive, cumbersome & costly
26SWIFT for Corporates - Do not share without SWIFT's prior consent
The KYC Registry for Corporates
User friendliness
Access to quality data
Secure, user-controlled access
Privacy
Co-operative business model
One central repository✓ Covering up to 80% of KYC
requirements
✓ Single, global standard
✓ Automatic refreshments and change
alerts to correspondents
✓ Proven use of navigation
✓ SWIFT validation of accuracy,
completeness, format and validity in time
✓ Full control over data and who can access it
✓ Audit trail
✓ Compliant with data protection regulations
✓ Non-profit cooperative of FIs
✓ Trusted 3rd party of 45+ years
✓ Developed with our community
27SWIFT for Corporates - Do not share without SWIFT's prior consent
Key Features
4 Categorieso Identification of the customer
o Ownership and management structure
o Type of business and client base
o Tax
277 Data Fieldso Mix of mandatory, optional and recommended
o 4 modules identified as extended baseline
25 Document Typeso 51% mandatory or recommended
o 49% optional
28
The KYC Registry for Corporates
KYC Registry
KYC Data &
Documents
validated by SWIFT
Corporate
Notification
2
Bank X
Counterparty
or Relationship
Management
approves
access
3 Data is unlocked
4CDD or EDDData Upload
Bank X
CONSUMERSCONTRIBUTOR
Access
Request
1
Notification5
1. Bank X requires access
and approaches the
Corporate via the KYC
Registry
2. The Corporate receives
notification that Bank X
requests access to their
KYC data
3. The Corporate approves
access of Bank X
4. Access to data is unlocked
on the KYC Registry
5. A notification is sent to
users at Bank X that KYC
data has been made
available by the Corporate.
The permission is valid
until pro-actively
revoked or surrendered.
SWIFT for Corporates - Do not share without SWIFT's prior consent
SWIFT for Corporates - Do not share without SWIFT's prior consent 29
BANK
S
CORPORATES
The KYC4C Working Group35 Members
16 Countries
3 Regions
100+ Relationships
All about Collaboration
Be part of SWIFT’s Engagement Group
30
Subscribe now to the KYC Engagement Group to:
• Stay up-to-date with recent developments
• Have direct access to our KYC experts structuring the
solution
• Share your feedback on the solution’s development
• Be part of the vital SWIFT KYC Community
Use the link to register and learn about Terms & Conditions:
https://www.swift.com/webform/kyc-pilot-engagement-group
The more input we receive from the community, the more
effectively the solution will suit KYC needs of corporates and their
banks. It is a mutual challenge; the community should address it
collectively.
Share the link with your counterparties within the community
(banks/corporates) to adopt the solution once available.
SWIFT for Corporates - Do not share without SWIFT's prior consent
Example – Home page
31SWIFT for Corporates - Do not share without SWIFT's prior consent
Example – Identification
32SWIFT for Corporates - Do not share without SWIFT's prior consent
Example – Document upload
33SWIFT for Corporates - Do not share without SWIFT's prior consent
www.swift.com
SWIFT for Corporates - Do not share without SWIFT's prior consent 34