?? IP to IP Funds Transfer to other!

Reference No.: FE201S183 I Date: Friday, Aug 02, 2024 I Editor: Mr.Sinan Can

To alleviate some compliance concerns when an MT 103 was sent per IPIP instead of SWIFT to other, you could consider your sending bank including the following additional information in the MT 202 COV within the correspondent bank to correspondent bank transmission of funds, where the format allows:

? Ordering Customer Information:

?? Provide details of the ordering customer, similar to Field 50 in MT 103. This can include name, address, and account number!

? Beneficiary Information:

?? Include details of the beneficiary, mimicking Field 59 in MT 103. This should have the beneficiary name, address, and account number!

? Purpose of Payment:

?? Explicitly state the reason for the transaction, which could alleviate some Anti-Money Laundering (AML) concerns!

? Regulatory Reporting Information:

?? If your jurisdiction requires, include codes or identifiers for regulatory reporting!

? Reference to IPIP MT 103:

?? A specific mention that the MT 202 COV is tied to a IPIP MT 103, can provide context to the intermediary bank!

? Contact Information:

?? Include specific contact details for the compliance department or transaction manager responsible for this payment, in case the receiving bank needs immediate clarification!

? Special Handling Instructions:

?? Any extra instructions for the receiving bank that could facilitate the identification and proper handling of the transferred funds.

? Charges and Fees Information:

?? In absence of an SWIFT MT 103, it might be beneficial to clarify who will bear transaction-related charges to prevent misunderstandings!

? Additional Identifiers:

?? Include any additional transaction identifiers that can link the MT 202 COV to the IPIP MT 103, such as invoice numbers or internal transaction IDs!

?? Note on Compliance

?? Including additional information in the MT 202 COV may not fully mitigate compliance risks, especially AML and CFT (Combating the Financing of Terrorism) checks that are typically addressed with a SWIFT MT 103 message and it's important to ensure that the modified MT 202 COV still complies with applicable standards and interbank agreements.

? Actual Transfer of Assets, Liabilities and Equities:

?? In asset, liabilities and equity transactions, it's crucial to record these transfers with the CSDs.

?? CSDs are responsible for maintaining the legal record of securities ownership, a process beyond the scope of the initial communication protocols.

?? The transfer of assets and equities also impacts the banks' financial statements, altering liabilities, assets, and equity balances.

?? This financial reporting to the involved controlling authorities and the necessary compliance aspect is beyond the data transmission capabilities of the protocols and requires additional financial and regulatory processes.

?? In essence, while protocols are vital for the secure and efficient exchange of information in IPIP transactions, the complete process involves additional systems for actual currency, asset, liabilities and equities movement, settlement, legal recording and financial reporting, ensuring that the entire transaction is executed in compliance with regulatory banking standards.

?? ?? I hope the information here will be useful to my followers and I wish you healthy days! For more info: Whatsapp ?? +86 13510320141