SWIFT Introduction - Citibank · UK – HMT Ukraine Restrictive Measures UN - United Nations UN -...
Transcript of SWIFT Introduction - Citibank · UK – HMT Ukraine Restrictive Measures UN - United Nations UN -...
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SWIFT Introduction CITI Event Tampa
April 8th, 2015
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SWIFT in figures
5+billion FIN messages per year (2013)
10,500+ SWIFT users
200+ Countries and territories
22.68 million FIN messages peak day (2013)
10.4% Increase in FIN traffic (2013)
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Banks
Global Custodians Corporates
Central Counterparties
Trade Depositories
Central Banks Broker-Dealers
Fund Managers
Clearing & Settlement Systems
Depositories Stock Exchanges CSDs
ICSDs
SWIFT users
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0
50
FIN price before rebate FIN traffic Continually lowering Total Cost of Ownership (TCO) 1991 – 2014 forecast
Millions of messages
5000
Cent / msg (EUR)
1991 2014
4000
3000
2000
1000
40
30
20
10
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Applications Sanctions KYC Business Intelligence SWIFTRef
Messaging Payments / Securities Market Infrastructures Corporate Treasury
Connectivity Alliance Lite2 Alliance Access AMH
Platform FIN Renewal HSM Refresh Distributed Architecture
SWIFT2015 Delivery on-track
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Standards
Platform
SWIFT’s core messaging service Financial messaging, enabled by platform and standards
Messaging FIN
InterAct FileAct
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SWIFT’s software offering Interfaces and integration products for today’s financial market needs
Low Volume Mid Volume High Volume
Connectivity
Interface
Integration Converter
AllianceLite 2
IPLA
Alliance Access
Alliance Gateway / Alliance Remote Gateway
Alliance Gateway
Alliance Messaging Hub
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Business Intelligence
SWIFTRef My Standards Matching
Drive down cost and risk in trade matching
Gain insight through unique data
Increase STP using quality data
Share, manage and test industry formats
Reduce cost & risk in financial crime compliance
Compliance Services
Deliver turnkey solutions through Services
Shared Services Portfolio at a glance
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Business Intelligence Gain insights through unique data
Watch for Correspondent Banking BI Consulting Services Watch for Securities On-site solutions SWIFT Economics
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Bank Identifiers (BIC, LEI)
IBAN/SEPA data
Standing Settlement
Instructions (SSI)
Financial & market
data
All available via file-based directories, API web services and online tools
SWIFTRef Quality reference data
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Manual file download
internet
Bankers World Online
internet
APIs (web services)
internet
FileAct (automated)
SWIFTNet
Automated file download
(API)
internet
TXT
XML
Formatting Monthly
Daily
Frequency
SWIFTRef Delivery Channels
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Development
Financial Crime Compliance Services, tools and roadmap
Exploration Live Qualification
Standards Sanctions list management service
Data repositories KYC Registry
Traffic analysis Compliance Analytics
FATF 16 information quality
Quality assurance Sanctions Testing (testing / tuning of transaction & client systems)
AML testing & tuning
Processing services Client / Name screening
Sanctions Screening Traffic Restriction (RMA)
Sanctions KYC AML
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Sanctions Screening overview
Your institution
Your correspondents
Hosted and managed screening engine
Daily updates from 35 lists
+ private lists
Real-time screening No additional footprint
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Today’s market: An unprecedented challenge to comply with KYC requirements
KYC Utility
• Pressure to reconcile & ‘de-risk’ • Exploding AML/KYC fines • KYC complexity (FATF/FATCA) and
inconsistencies across jurisdictions • Cumbersome, repetitive and inefficient
bilateral exchanges • Unavailability and poor quality of
information
As a result the industry has witnessed a new development, the growth of the KYC ‘utility’
The Cost of KYC is becoming prohibitive
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Ø A Single Standard Ø Validated data Ø A feature-rich Platform Ø Unique value-add content Ø Community-lead engagement
The founding principles
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Sanctions Fines
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Sanctions Impact
Global review of banking relationships both on profitability and on compliance
The pressure to adhere to anti-money laundering standards, has resulted ‘in higher operational costs for trade and export finance business’ (ICC)
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Why is sanctions compliance so complex?
Possible fuzzy logic combinations
3,000
New aliases in a single EU update on 19 July 2011
500 40,000
Names and aliases on lists
40,000
Names and aliases on lists
1 day
Average interval of list updates
4 billion +
4 billion +
Possible fuzzy logic combinations
Correspondent relationship terminated over the past year by just one US Bank
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Your institution
Your correspondents
Sanctions screening over SWIFT
• Screening engine & user interface • Sanctions List update service with enhancements • Minimum/no installation or integration required • Centrally hosted and operated by SWIFT for SWIFT users • Real-time
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“We value the ability to use a secure, automated system that ensures we are compliant with the most up-to-date sanctions lists.” Mohamed Isa AL Mutaweh, Chief Executive Officer & Member of the board of Directors, Al Baraka Islamic Bank
24 SWIFT Offering - Banco Patagonia
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Public Sanctions Lists available
Public Sanctions
Lists supported
AU – Australia Department of Foreign Affairs and Trade AU - DFAT Countries Embargoes AU - DFAT Iran Specified Entities List CA – Canada Foreign Affairs and International Trade CA - FAIT Countries Embargoes CA - Office of the Superintendent of Financial Institutions CA - OSFI - United Nations Act Sanctions CN - People's Republic of China - Ministry of Public Security EU - EUROPE Countries Embargoes EU - European Official Journal EU - Ukraine Restrictive Measures FR - Journal Officiel français HK - Hong Kong Monetary Authority HK - HKMA Countries Embargoes JP - Ministry of Finance NL - Frozen Assets List - Dutch Government NZ - New Zealand Police
SG - Singapore MAS - Investor Alert List CH - Switzerland Secrétariat d’Etat à l’Economie CH - SECO Countries Embargoes UK - Her Majesty’s Treasury UK - HMT Countries Embargoes UK – HMT Ukraine Restrictive Measures UN - United Nations UN - UN Countries Embargoes US - Office of Foreign Assets Control SDN list US - OFAC Palestinian Legislative Council US - OFAC Part 561 list US - OFAC Foreign Sanctions Evaders US – OFAC Sectoral Sanctions Identifications US - Financial Crimes Enforcement Network US - OFAC Countries Embargoes
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Private Lists Good Guys List
ü Single entries and bulk capability
Sanctions Screening- Additional Lists
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Data Enhancements
• List from regulator needs to be enhanced and repaired
• 28 different ways of spelling Mohamed • List repairs:
– DFAT000527 : ASSAD AHMAD BARAKAT • City Name (FOX DO IGUACO) corrected to: FOZ DO
IGUAÇU – OFAC004632 : BANK MARKAZI JOMHOURI
ISLAMI IRAN • No BIC Code : added BMJIIRTH
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Screening and Audit Report
Screening Transactions
Downloading Reports
Screening Report
Audit Report: Full Audit Trail
Evaluating Results
True Hit False Positive
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Sanctions Screening – Customer ramp up
29 Oct 2014 252 contracts 90 countries
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Introducing a new Sanctions Screening option
Your institution Your correspondent
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Based on Copy
Based on Connector
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www.swift.com