Treasury Bills

Treasury bills, or T-bills, are issued at a discount from their face value. For example, you might pay $990
for a $1,000 bill. When the bill matures, you would be paid its face value, $1,000. Your interest is the face
value minus the purchase price in this example, the interest is $10. The interest is determined by the
discount rate, which is set when the bill is auctioned.
You can buy a bill in TreasuryDirect or Legacy Treasury Direct, or through a bank, broker, or dealer. The
table below shows the types of bills available for purchase by each of those means.

Bank/Broker/Dea
Term *TreasuryDirect Legacy Treasury Direct
ler
4-Week Bill Yes **No Yes

13-Week Bill Yes Yes Yes

26-Week Bill Yes Yes Yes

52-Week Bill Yes Yes Yes

Cash Management Bills No No Yes

*NOTE: At this time, only individuals can hold accounts in TreasuryDirect.

**Not sold in Legacy Treasury Direct, but can be transferred into this system after purchase.
You can bid for a bill in two ways:
With a noncompetitive bid, you agree to accept the discount rate determined at auction. With
this bid, you are guaranteed to receive the bill you want, and in the full amount you want.
With a competitive bid, you specify the discount rate you are willing to accept. Your bid may be:
1) accepted in the full amount you want if the rate you specify is less than the discount rate set by
the auction, 2) accepted in less than the full amount you want if your bid is equal to the high
discount rate, or 3) rejected if the rate you specify is higher than the discount rate set at the
auction.
To place a noncompetitive bid, you may use TreasuryDirect, Legacy Treasury Direct, or a bank, broker, or
dealer.
To place a competitive bid, you must use a bank, broker, or dealer.

Key Facts:
Bills are sold at a discount. The discount rate is determined at auction.
Bills pay interest only at maturity. The interest is equal to the face value minus the purchase price.
Bills are sold in increments of $100. The minimum purchase is $100.
All bills except 52-week bills and cash management bills are auctioned every week. The 52-week
bill is auctioned every four weeks. Cash management bills aren't auctioned on a regular
schedule.
Cash management bills are issued in variable terms, usually only a matter of days.
Bills are issued in electronic form.
You can hold a bill until it matures or sell it before it matures.
In a single auction, an investor can buy up to $5 million in bills by non-competitive bidding or up to
35% of the initial offering amount by competitive bidding.
 Treasury Bills in Algeria
AFS portflolio:
1. 3-month t-bill ( Features: government 3-month security, it only has a discount rate, it is taxable on
interest earned), Flex booking product: TBNX AFS bill Taxable

2. 6-month t-bill ( Features: government 6-month security, it only has a discount rate, it is taxable on
interest earned), Flex booking product: TBNX AFS bill Taxable
3. 1-year bond ( also called BTA 1 AN) : ( Features: government 1-year security, it has two types of
interest rates related to it, a coupon interest rate and a yield, it is taxable on interest earned), Flex
booking product: TAFX for AFS bond taxable.
4. 2-year bond ( Also called BTA 2AN): ( Features: government 2-year security, it has two types of
interest rates related to it, a coupon interest rate and a yield, it is taxable on interest earned), Flex
booking product: TAFX for AFS bond taxable.
5. 3-year bond ( also called BTA 3 AN): ( Features: government 3-year security, it has two types of
interest rates related to it, a coupon interest rate and a yield, it is taxable on interest earned), Flex
booking product: TAFX for AFS bond taxable.
6. 5-year bond (also called BTA 5 AN): ( Features: government 5-year security, it has two types of
interest rates related to it, a coupon interest rate and a yield, it is non taxable), Flex booking product:
TAFS for AFS bond non taxable.

TRADING PORTFOLIO
1. 3-month t-bill ( Features: government 3-month security, it only has a discount rate, it is taxable on
interest earned), Flex booking product: STNX (Trading bill Taxable)
2. 6-month t-bill ( Features: government 6-month security, it only has a discount rate, it is taxable on
interest earned), Flex booking product: STNX (Trading bill Taxable)
3. 1-year bond ( also called BTA 1 AN) : ( Features: government 1-year security, it has two types of
interest reates related to it, a coupon interest rate and a yield, it is taxable on interest earned), Flex
booking product: STBX for trading taxable.
4. 2-year bond ( Also called BTA 2AN): ( Features: government 2-year security, it has two types of
interest rates related to it, a coupon interest rate and a yield, it is taxable on interest earned), Flex
booking product: STBX for trading taxable.
5. 3-year bond ( also called BTA 3 AN): ( Features: government 3-year security, it has two types of
interest rates related to it, a coupon interest rate and a yield, it is taxable on interest earned), Flex
booking product: STBX for trading taxable.
6. 5-year bond (also called BTA 5 AN): ( Features: government 5-year security, it has two types of
interest rates related to it, a coupon interest rate and a yield, it is non taxable), Flex booking product:
STBT for Trading non Taxable
Please not that in Algeria all government securities with above than 5-year tenors are non
taxable.
 USD PAYMENT SYSTEMS

CHIPS Universal Identification Number (UID)

CHIPS, Clearing House Interbank Payments System, is a bank-owned payments system for
clearing large value U.S. Dollar payments. The Clearing House Association uses Universal
Identification Numbers (UIDs) to identify financial institutions and corporations that hold U.S.
dollar accounts in the United States. The number is designated in the listings as UNIV-ID. The
UID is a six-digit number that is unique to each institution but is common among all CHIPS
member banks maintaining an account for that institution. Whenever your bank instructs Citibank
to pay funds to another bank in the U.S. via CHIPS, the CHIPS UID may be included to qualify
the payment. Alternatively, a payment may be qualified by using the receiving banks SWIFT/ BIC
address or account number. Any of these three qualifiers will facilitate automated processing by
the receiving bank.

CHIPS Participant Number(s) for Correspondents

CHIPS Participant Numbers for Correspondents are the four-digit routing numbers of the CHIPS
member banks with which the listed banks maintain an account. For example, 0008 identifies
Citibank, 0257 Barclays Bank PLC, and 0967 Sumitomo Mitsui Banking Corporation. To make a
payment to a beneficiary at a CHIPS member bank, you should identify the CHIPS member bank
using its CHIPS participant routing number and identify the beneficiary using its CHIPS UID,
account number or other identifier. Citibanks CHIPS participant routing number is boldfaced
throughout the directory to highlight the institutions that have an account at Citibank.

Fedwire
Fedwire funds transfer system is a high-speed electronic payments system owned and operated
by the Federal Reserve Banks. It is a real-time, gross settlement system (RTGS) used primarily
for high-value domestic U.S. Dollar payments.
Fed Telegraph abbreviation - is the abbreviated name identifying a depository institution within
the Federal Reserve's Fedwire Funds Transfer System (Ex. BK AMER NYC).

ABA Routing Numbers

The 9-digit basic routing number (eight digits and a check verification digit), devised by the
American Bankers Association (ABA) in 1910, has served to identify the specific financial
institution responsible for the payment of a negotiable instrument. Originally designed to identify
only check processing endpoints, the routing number system has evolved to designate
participants in automated clearinghouses, electronic funds transfer, and on-line banking. The
ABA Routing Number (a.k.a. ABA number; Routing Transit number) has changed over the years
to accommodate such things as the Federal Reserve System, the advent of MICR, and the
implementation of the Expedited Funds Availability Act (EFAA).
A routing number will only be issued to a Federal or State chartered financial institution which is
eligible to maintain an account at a Federal Reserve Bank.

U.S. Dollar Payment Systems

The Clearing House
The Clearing House Payments Company is a private sector, global payment systems
infrastructure that clears and settles 20 million payments for more than $1.5 trillion per day.
Established in 1853 to simplify the exchange of checks and improve the efficiency of the
payments system, the Clearing House now serves more than 1,600 U.S. financial institutions and
hundreds of international participants and manages payment services that span the entire
spectrum of paper, paper-to-electronic and electronic payments. Services include local and
regional check exchange and settlement services; ACH association and operations; large-value
wire payments; electronic check presentment and an image exchange. It manages and
operates the Clearing House Interbank Payments System (CHIPS), the National Check
Exchange, and the SVPCo businessesthe Electronic Payments Network (EPN) and Electronic
Clearing Services (ECS).
The Clearing House Payments Company is owned by a number of banks or their U.S. banking
affiliates, including Citibank, N.A., Bank of America, The Bank of New York, Bank of Tokyo-
Mitsubishi, JPMorgan Chase Bank, Deutsche Bank, HSBC, Key Bank, M&T Bank, National City
Bank, PNC Bank, UBS Investment Bank, Wachovia Bank and Wells Fargo Bank.
For further information on the Clearing House, please visit http://www.theclearinghouse.org/

CHIPS
CHIPS, the Clearing House Interbank Payments System, was created as a separate operating
company of the Clearing House to focus on large-value payments. This private sector electronic
system has the worlds largest commercial banks as its members. Citibank is one of the founding
members of CHIPS. The current board is composed of senior officers from: Citibank, N.A., ABN
AMRO Bank, N.V., Bank of America, N.A., The Bank of New York, The Bank of Tokyo Mitsubishi,
Ltd., Deutsche Bank AG, HSBC Bank USA, JP Morgan Chase Bank, UBS AG and Wachovia.
CHIPS is a real-time continuous matching, multilateral netting system that provides finality for
payments messages as they are released by the system. CHIPS processes over 270,000
payments a day with a gross value of over $1.4 trillion. It is a premier payments platform serving
the largest banks from around the world while representing 19 countries worldwide and
processing 95% of the U.S. Dollar cross-border payments.
Over the past two decades, the number of CHIPS participants has declined significantly from 142
members in 1985 to 48 in 2005. The decrease can be attributed to:
A reduction in the total number of institutions due to bank mergers and consolidations.
The high cost of participation. From operating procedures, technology investment and regulatory
matters, it is more economical for institutions to buy clearing services from a correspondent than
to supply it internally.
Demands on participants for Initial Pre-Funding Amount and End-of-Day Funding.
Declining margins on clearing services, which have resulted from price pressures caused by
industry overcapacity.
8
For these reasons, many institutions prefer to buy clearing services from a correspondent such as
Citibank.
For further information on CHIPS, please visit www.chips.org

Fedwire
Fedwire funds transfer system is an RTGS payment system that processes on a same-day basis
without settlement risk to the participants. It is a high-speed electronic payment and
communication system that links the 12 district and 25 branch banks of the Federal Reserve
Bank, and reaches more than 11,000 member institutions. Fedwire is the primary payment
system for high-value, domestic U.S. dollars, and participant banks settle through their accounts
with the Federal Reserve Bank.
For further information, please http://www.ny.frb.org/banking/services/fundstransfer.html

ACH
SVPCo is the Clearing Houses holding company for two operating companies that offer a strong
complement of electronic payment and check electronification services:
Electronic Clearing Services (ECS), the only private sector Electronic Check Presentment
provider, offers ECP and Image services
Electronic Payments Network (EPN), the largest private sector Automated Clearing House
Electronic Clearing Services (ECS) is the leading bank-owned private sector provider of check
electronification services to financial institutions in the U.S. Operating the only private Electronic
Check Presentment (ECP) system, ECS directly benefits banks that seek to reduce cost,
increase service, mitigate risks including fraud loss and create new revenue streams.
The Electronic Payments Network (EPN) is the largest, national, private sector automated
clearing house (ACH) operator. It provides services to 1,600 financial institutions that have
customers in every U.S. state and Puerto Rico. EPN is known for its innovations, including the
Universal Payment Identification Code (UPIC). UPIC is a unique number assigned to corporate
customers and makes initiating corporate ACH transactions easier, provides fraud protection, and
minimizes corporate account maintenance. Over a thousand financial institutions participate in
SVPCo's ACH, and ECS services.
For further information, please visit www.svpco.com.

Continuous Linked Settlement (CLS)

CLS is a unique real-time multi-currency settlement and payment system that enables
simultaneous foreign exchange settlements across the globe, eliminating the settlement risk
caused by delays arising from time-zone differences.
CLS Group was founded in 1997 to create the first global settlement system, eliminating
settlement risk in the foreign exchange market. With 70 of the worlds largest banks and financial
institutions as its shareholders, CLS Group has two main operating companies, CLS Bank
International and CLS Services. CLS Services provides technical and operational support to CLS
9
Bank. CLS was launched in September 2002 for settlement members and for third party banks in
November 2002. As of December 2005, 57 settlement members and 600 third party participants
settled their foreign exchange transactions via CLS. CLS Bank settled over 210,000 sides of
trade each day, with an average daily value of US $ 2.2 trillion.
Fifteen currencies are currently eligible for CLS settlement. They are: U.S. Dollar, Euro, U.K.
Sterling, Japanese Yen, Swiss Franc, Canadian Dollar, Australian Dollar, Swedish Krona, Danish
Krone, Norwegian Krone, the Singapore Dollar, the Hong Kong Dollar, the New Zealand Dollar,
the Korean Won and the South African Rand.
For the most updated information about CLS and CLS third party participants, please visit
www.cls-group.com.
10

Industry Updates from Citigroup

Office of Foreign Assets Control (OFAC) Regulations
OFAC, an agency within the U.S. Department of the Treasury, has regulatory authority over
assets related to countries, individuals and entities, including Specially Designated Nationals
(SDNs) of those countries, and individuals or entities identified as being associated with narcotics
trafficking or terrorism subject to sanctions adopted by the U.S. government.
These regulations require that all banks located in the U.S., overseas branches of U.S. banks,
and, in certain instances, overseas subsidiaries of U.S. banks, comply with economic sanctions
and embargo programs administered under regulations issued by OFAC. In general, such
regulations require:
1. Blocking accounts and other assets of countries, individuals or entities identified as being a
threat to national security by the President of the United States, and
2. Prohibiting unlicensed trade and financial transactions with such countries, individuals or
entities.
U.S. law requires that assets and accounts be blocked when such property is subject to U.S.
jurisdiction. The definition of assets and property is very broad and covers direct, indirect,
present, future, and contingent interests. Certain individuals and entities located around the world
that are acting on behalf of target governments have been identified by OFAC as Specially
Designated Nationals (SDNs) and must be treated as if they are part of the target government.
Property of other individuals or entities designated under "List Specific" sanctions must also be
blocked.
The following countries are currently affected. Please note that this list can change at any time
without prior notice.

I. Country-Specific Sanctions Programs Full Scope

Cuba
Trade and financial transactions are prohibited unless licensed; property and property interests of
the government and nationals are blocked; no money may be sent to or from individuals or
entities in Cuba regardless of citizenship unless authorized by the U.S. Treasury Department.
Iran
In general, funds transfers to and from Iranian government entities and officials (including most
Iranian banks) and Iranian nationals residing in Iran who hold accounts on the books of a U.S.
bank are prohibited. Their transactions are not blocked, but must be rejected and returned to the
remitter.
11
Sudan
Trade and financial transactions are prohibited unless licensed; property and property interests of
the government are blocked. Unlike Iran, only some Sudanese banks are designated as entities
owned or controlled by the government. Non-SDN transactions in support of commercial activity
in Sudan are prohibited and must be rejected.
Burma (Myanmar)
All financial services involving Burma are prohibited unless authorized by the U.S. Treasury
Department. Payments routed to or from government-controlled banks must be blocked.
II. Country-Specific Sanctions Programs Limited in Scope
Libya
Payments coming directly FROM a governmental entity of Libya representing a charitable
donation must be rejected. Payments coming directly FROM a governmental entity of Libya
representing a terrorist activity against a U.S. person must be blocked. This prohibition is only on
the remitting side of a payment and does not include Libyan banks.
Certain trade transactions involving the exportation of goods, software or technology from the
U.S. must be licensed or approved by the Department of Commerce.
North Korea
Payments coming directly FROM a governmental entity of North Korea representing a charitable
donation must be rejected. Payments coming directly FROM a governmental entity of North
Korea representing a terrorist activity against a U.S. person must be blocked. This prohibition is
only on the remitting side of a payment and does not include North Korean banks.
Certain trade transactions involving the exportation of goods, software or technology from the
U.S. must be licensed or approved by the Department of Commerce.
Syria
Payments coming directly FROM a governmental entity of Syria representing a charitable
donation must be rejected. Payments coming directly FROM a governmental entity of Syria
representing a terrorist activity against a U.S. person must be blocked. This prohibition is only on
the remitting side of a payment and does not include Syrian banks.
Trade transactions involving the exportation of U.S. origin goods, software or technology are
prohibited.

III. List-Specific Sanctions Programs

Specially Designated Global Terrorists (SDGTs)
Foreign Terrorist Organizations (FTOs)
Specially Designated Terrorists (SDTs)
Specially Designated Narcotics Traffickers (SDNTs)
12
Specially Designated Narcotics Traffickers Kingpins (SDNTKs)
Western Balkans/ Federal Republic of Yugoslavia-Milosevic (BALKAN)
Zimbabwe (ZIMB) and Liberia (Liberia)
All property and property interests of individuals and entities designated under these programs
must be blocked. These programs are list-specific; the target is not a geographic territory. They
are individuals and entities allegedly involved in criminal activity such as global terrorism,
narcotics trafficking, threatening peace in the Western Balkans region, indicted war criminals
associated with Slobodan Milosevic, government officials, who undermine the democratic
processes in Zimbabwe and members of the former regime of Charles Taylor of Liberia. These
designations are included in OFACs master SDN list.
All U.S. banks monitor high-risk transactions including funds transfers, letters of credit, to ensure
that they do not violate U.S. sanctions regulations. Any transaction identified must be blocked or
rejected depending upon the requirements of the sanctions program involved. It is important to
note that once a transaction is blocked, it cannot be canceled at the clients request. The remitter
of the transaction must obtain a license from OFAC authorizing release of the funds.
Citigroup has committed substantial resources to its transaction-monitoring programs and
procedures to ensure compliance with U.S. sanctions regulations. This summary is intended to
provide a brief, general overview of U.S. sanctions regulations. It is not a comprehensive
explanation of the specific regulations. For additional information, please contact your Citigroup
representative.
Citigroups Policy Against Money Laundering and Terrorist Financing
At Citigroup, we recognize that we benefit from operating in open economies with clear rules and
regulations, and strict standards of good governance for all participants. We have been active in
many ways to protect the global financial system from abuse. Knowing that our business benefits
from a global financial system that is perceived as honest, transparent and efficient, we have
taken a leadership role in adopting and promoting global anti-money laundering principles. We
have also continued to be at the forefront in efforts to identify the role that financial institutions
can play in the war against the financing of terrorism.
Stemming the flow of proceeds of illicit activities is a matter of great importance to Citigroup, its
clients and its stakeholders, as well as to law-abiding citizens everywhere. Technological
advances are enhancing our ability to identify potentially suspicious activity. Citigroup has a
broad-based Global Anti-Money Laundering Policy that covers all its businesses worldwide. The
policy sets forth Citigroup's stringent customer due diligence requirements, as well as policy and
procedures designed to ensure compliance with U.S. laws and regulations and the laws and
regulations of the jurisdictions in which we operate outside the United States. The Citigroup
Global Anti-Money Laundering Policy is available on our Web site.
www.citigroup.com/citigroup/citizen/antimoneylaundering/index.htm.
Recognizing the complexity and global nature of combating money laundering, fraud, terrorist
financing and threats to information security, we also work with law enforcement, administrative
and regulatory agencies, as well as a broad range of financial industry organizations from around
the world to foster cooperation, share information on best practices, and promote consistency in
these ongoing efforts. These organizations include Transparency International, the Overseas
Security Advisory Counsel, the International Security Management Association, the International
13
Banking Security Association, the American Society of Industrial Security, the International
Association of Credit Card Investigators, the Bank Industry Technical Secretariat, and Business
Executives for National Security.
As a global financial institution that offers banking, securities and insurance products to millions of
customers around the world, Citigroup recognizes its obligation to join with governments,
international organizations and other members of the financial industry to help close off the
financial channels that terrorists and money launderers use for their illicit purposes.
As part of the ongoing effort to deter money laundering and terrorist finance, governments
periodically introduce new regulations. In 1996 the U.S. Treasury Department implemented the
Travel Rule, applicable to financial institutions within the United States, its possessions and
territories, which requires that key information travel in transmittal orders of U.S. $3,000 or
more, or its foreign currency equivalent. Law enforcement officials will thereby have immediate
access to relevant data such as the originator (or ordering party), the beneficiary, and the
financial institutions involved in the transaction.
Recent Regulatory Updates to the Travel Rule Conditional Exception Expiration
As of July 1, 2004, the requirement that the true name of the originator/transmittor be used in a
transmittal order may no longer be satisfied by including the name information contained in the
financial institutions automated customer information file (CIF) if that name is a coded name or
pseudonym. This also would apply to numbered or coded accounts in a broker-dealer. While the
Travel Rule does not permit the use of a coded name or number, the rule does allow the use of
abbreviated names, names reflecting different accounts of a corporation (e.g, XYZ Payroll
Account), as well as trade and assumed names of businesses (D/B/A/) or the names of
unincorporated divisions or departments of businesses.
With respect to the address information that must be included in a wire transfer, the Financial
Crimes Enforcement Network (FinCEN) has determined that the Travel Rule should be read to
allow the use of mailing addresses. Thus, the term address means either the
originators/transmittors street address, or the originators/transmittors address maintained in the
financial institutions automated CIF so long as the institution maintains the
originators/transmittors true address on file and such address information is retrievable upon
request by law enforcement. FinCEN has also clarified that a financial institution may comply
with the Travel Rule by forwarding with the transmittal order the customers mailing address that
is maintained in the automated Customer Information File (CIF), even if that address happens to
be the financial institutions own mailing address such as in the case of a Hold-All-Mail or Trust
account, so long as that is the mailing address in the CIF. Further details on the Travel Rule and
the Expiration of the Conditional Exception may be found on FinCENs Web site at
www.fincen.gov.
Responsibilities outside the United States and FATF Special Recommendation VII
The Travel Rule does not apply to financial institutions outside the United States, its territories
and possessions. On the international front, however, on February 14, 2003 the Financial Action
Task Force on Money Laundering (FATF) issued an Interpretative Note to Special
Recommendation VII: Wire Transfers. This Special Recommendation aims to ensure that basic
information on the originator of wire transfers travels with certain payments, and FATF has left it
14
up to each jurisdiction to determine the best way to implement this recommendation into its
regulatory regime. FATF has provided a two-year timeframe for implementation to allow
jurisdictions to make the relevant legislative or regulatory changes and to allow financial
institutions in such jurisdictions to make necessary adaptations to their systems and procedures.
We anticipate that a number of jurisdictions will be implementing these recommendations over
the next year. Further details may be found in the Interpretative Note to Special
Recommendation VII at: www.oecd.org/fatf/pdf/INSR7_en.PDF
We encourage you to provide as much information as possible in your payments, including the
originators/transmitters name, address, and account number, where practicable and subject to
the requirements of local law and FATF Recommendation VII. Your participation will help deter
money laundering worldwide. As always, you may contact your Citibank Representative if you
have any questions or concerns.
15
Citibank U.S. Dollar Clearing Services
Our U.S. Dollar Clearing Services enables you to execute payments virtually anywhere in the
world in a timely, efficient, and cost-effective manner. Our state-of-the-art technologies offer a
range of modular functionalities that can be integrated to create a customized payment solution
that fulfills your specific requirements. These solutions are individually designed to facilitate
straight-through processing, minimize your costs and ensure timely payment execution.
Citibanks extensive client network allows us to process many of your payments via book transfer,
reducing your risk and enhancing processing efficiency.
Citigroup offers a full suite of solutions to meet your U.S. Dollar payments needs:
Straight-Through Processing Services
Reconciliation Services
Charge Beneficiary and Credit Fee Deduct Services
Full Value Transfer Services
Advising Plus
Expanded Operating Hours
Priority Wires and Timed Payments
E-mail and Fax Advising
MT110 Match Pay Service
8:00 p.m. Statements and Split Statements
Payment Flow Management Services
Straight-Through Processing Services
Straight-Through Processing from Citigroup is a suite of sophisticated automated tools that
identify and reduce formatting errors, evaluate the causes of repairs, and recommend formatting
improvements. Designed to work together to facilitate straight-though processing of your
outbound and inbound payments, this product suite includes the following tools:
U.S. Dollar Payments Directory lists all banks that participate in the U.S. Dollar payments
correspondent network worldwide. Designed as a reference tool, this comprehensive listing offers
a variety of correspondent bank alternatives to facilitate payment routing decisions.
Repair Analysis investigates the causes of repairs and offers specific recommendations for
formatting improvements.
Auto Repair automatically corrects recurring formatting errors and systemic formatting flaws in
accordance with predetermined instructions.
16
Intermediary Bank Selection identifies a correspondent bank for commercial payments of less
than $10 million in CHIPS and less than $2 million in Fedwire where the beneficiary bank cannot
be paid directly by Citibank and no intermediary bank is specified.
Processing Indicator reports on your MT 950 or MT 940 statement how your payments were
processed, indicating whether payments were straight-through, repaired or unstructured.
Straight-Through Processing uses sophisticated automated tools and analytical techniques to
reduce your repair rates and delays in payment execution, offering your organization several
valuable benefits:
Lower costs for you and your clients
Enhanced service for you and your clients
Targeted recommendations to help you initiate clean payment instructions
Reconciliation Services
Reconciliation Services is a suite of tools designed to reduce reconcilement exceptions and
facilitate the timely processing of your inbound commercial and treasury payments. Citigroups
state-of-the-art scanning and artificial intelligence technologies perform various functions,
including the modification of advice and payment orders in accordance with your standing
instructions. Reconciliation Services are composed of many customized tools:
MT 103 Assurance reduces reconcilement exceptions caused by the non-receipt of MT 103
payment orders. Receipt of MT 910s in lieu of MT 103s most often occurs when beneficiary
details are dropped or misplaced within the payment chain, and can result in delays posting
funds. In order to offer you the opportunity to process these payments, Citigroup will send an MT
103, which contains all the payment information included in the payment order we received.
Advice Repair automatically identifies reference number patterns in your incoming payments and
correctly positions the expected reference in your statements and advices.
Flexible Reporting directs payment orders, advices and statements meeting your predetermined
criteria 1) to your designated branch or branches or 2) from all your Citigroup accounts to a single
SWIFT address.
MT210 Matching reconciles actual credits against the expected credits you identify in your
MT210 pre-advices.
Reconciliation Services reduces your reconcilement exceptions, streamlines your reconcilement
processing, and facilitates timely credits to your customers, offering you:
Timely and predictable receipt of funds
Lower costs due to the reduced need for manual intervention and capital investment in internal
reconcilement operations and staff
Reduced risks associated with reconcilement exceptions
Customized control of your reconcilement process, regardless of your operating structure
17
Charge Beneficiary and Credit Fee Deduct Services
Charge Beneficiary and Credit Fee Deduct enable you to deduct processing fees from the
principal of your commercial and trade payments. Our robust artificial intelligence technology,
flexible fee structure and customized services allows you to deduct fees on a greater number of
your transactions with the added assurance that sensitive payments will be handled according
to your special instructions.
With Charge Beneficiary, you can deduct processing fees from the principal of outbound
commercial (MT103) and trade payments (MT202), while Credit Fee Deduct does the same for
inbound payments.
You can choose from a variety of deduction methods, including:
Standard Deduction: A flat deduction amount is applied to all transactions.
Tiered Deduction: Different amounts are deducted based on the dollar value of the payment.
The deduction can be a set dollar amount or a percentage of the principal. You may specify floors
and ceilings on deductions to ensure they meet your deduction requirements. Once the principal
ranges of the tiers are established, the correct deduction will be automatically applied to all
eligible payments.
Incremental Deduction: You may also request an incremental fee be added to your standard or
tiered deduction schedule for specific transactions.
In addition to these methods, Citigroup offers you the ability to vary fees on the basis of
predetermined payment attributes, such as:
Transaction type (MT 103 or MT 202)
Transaction reference or code word
Payment destination, and/or
Originator or beneficiary information
Beneficiary Banks SWIFT country code
Charge Beneficiary and Credit Fee Deduct offer you a variety of benefits, including:
Lower costs and additional revenue stream
A simplified transaction initiation process
Flexible options for customized deductions
Full Value Transfer Services
With Full Value Transfer (FVT) Services, funds are sent in their entirety to the receiving bank, and
on to the beneficiary. Our Full Value Transfer Services gives you three payment options from
which to choose:
Claim Protect: With the Claim Protect option, you are protected from potential claims (below a
pre-set limit appropriate with the fee)and protected, as well, from the hassle of handling these
18
claims. Citibank will send an FVT payment in its full amount, handle any claims from the receiving
banks and pay valid claims. You simply pay a Claim Protect fee for each transaction.
Claim Protect gives you certainty in budgeting transaction costs and protection from
unpredictable claims, and simplifies the process of passing transaction fees on to your
customers. Heres how it works:
1. You send Citibank an MT 103 payment order with OUR inserted in field 71A.
2. Citibank forwards the instruction to the intermediary or beneficiary bank with charge code
OUR, indicating that it should pass the full payment amount to the beneficiary and send
MT 191 claim of processing fees to Citibank.
3. Citibank then honors the valid claim and pays the claiming bank.
Claim Direct: With the Claim Direct option, Citibank will send a Full Value Transfer payment in its full
amount. However, upon receipt of a claim, we will pass a valid claim to you through direct debit from
your account. We will process all valid claims below a cap that you designate, for a nominal per-claim
handling fee.
The Claim Direct option provides you with details of each claim without bogging you down in the
claim handling process. Heres how it works:
1. You send Citibank an MT 103 payment order with OUR inserted in field 71A.
2. Citibank forwards the instruction to the intermediary or beneficiary bank with charge code
OUR, indicating that the next bank in the chain should pass the full payment amount to
the beneficiary and send MT 191 claim of processing fees to Citibank.
3. Citibank passes a valid claim to you by debiting the amount from your account and
crediting the claiming bank.
BEN-OUR: FVT can be combined with other Citibank U.S. Dollar Clearing solutions. For
instance, BEN-OUR is a combination of Charge Beneficiary Deduction (Charge Bene) and FVT.
With the BEN-OUR option, you include the designation BEN or SHA in field 71A and codeword
/BENOUR/ in field 72 in your MT 103 payment order. Citibank deducts the Charge Bene fee from
the principal in lieu of the FVT fee and sends the netted amount as FVT, indicating that the
receiving bank should send MT191 claims of processing fees to Citibank. We also handle and
pay all valid claims.
By choosing one of the options above, you will be able to
Keep your remitting customers happy and loyal
Gain certainty in budgeting transaction costs and protection from unpredictable claims
Get claim details without getting bogged down in handling
Share information and bill your branches, subsidiaries or other entities in your
organization
Combine Full Value Transfer with other Citigroup U.S. Dollar Clearing solutions
19
Advising Plus
Traditionally, commercial payments between parties outside the United States have been made
using direct and cover or serial S.W.I.F.T. MT 103 processing, both of which are costly and
complex.
Advising Plus offers an efficient and cost-effective means to initiate third-party payments outside
the United States that also overcomes the processing obstacles and delays often created by time
zone differences. You simply send your commercial remittance to Citibank via an MT 103 on or
before value date, and this single message is used to effect same-day and future value-dated
payments. This service is also available through Citibanks electronic banking platform,
CitiDirect Online Banking.
This single SWIFT MT 103 or CitiDirect Online Banking initiated payment order sets a smooth
process in motion:
You send us your MT 103 on or prior to value date
Upon receipt of your eligible MT 103, Citibank forwards an identical MT 103 to the beneficiary
bank
On value date, we debit your account with Citibank, New York and transmit covering funds to the
beneficiary bank, either as a book transfer, or via CHIPS or FedWire payment systems
Advising Plus improves your processing efficiency while enhancing the services you offer to your
clients. Additional benefits of Advising Plus include:
Timely payment execution and around-the-clock repair processing to ensure the beneficiary
receives the funds on value date
Reduced operating costs thanks to the generation of fewer SWIFT messages and savings on and
authentication key maintenance costs
Expanded Operating Hours
Starting May 17, 2004, Fedwire and CHIPS expanded their operating hours. The two U.S. Dollar
clearing systems open at 9:00 p.m. EST on the prior day, three and one-half hours earlier than
the previous opening time of 12:30 am EST.
Citigroups U.S. dollar fund transfer system begins payment processing in tandem with the early
opening hour, enabling you to deliver funds with same day value to beneficiaries in distant time
zones. We are one of the few banks that both send and receive transactions throughout the entire
Fedwire and CHIPS processing day.
The early opening provides a greater overlap for U.S. dollar wholesale payments across regions
in the world, and helps overcome processing obstacles and delays caused by time zone
differences. Please be reminded that not all banks participate in the expanded operating hours,
and as a result, payments sent via Fedwire or CHIPS are held until the receiving bank comes
online.
Both our Advising Plus and Expanded Operating Hours help you overcome time zone differences
and allow your beneficiary to receive funds before the local cut-offs on the value date.
20
Priority Wires and Timed Payments
Priority Wires place your time-critical payments at the top of the regular wire transfer queue,
giving them priority in repair and credit risk management. That enables you to initiate time-critical
transfers you want to execute ASAP e.g., payments for closings and acquisitions.
Timed Payments let you make payments within a time frame you specify. You can meet clearing
and settlement deadlines in various parts of the world by inserting a time stamp in field 72.
E-mail and Fax Advising
E-mail and fax advising delivers an immediate e-mail or fax advice to addresses you choose,
upon completion of a U.S. dollar funds transfer payment. This flexible and innovative new service
provides a solution to clients that need immediate notification of a wire transfers execution and
completion. It is most helpful when parties inside or outside a wire transfer must be immediately
notified that funds were sent or received e.g., legal transactions, deal closings, mergers or
acquisitions.
MT 110 Match Pay Service
The MT 110 Match Pay Service from Citigroup automatically matches your issuance information
with checks presented for payment against your account. Designed specifically to improve the
level of service Citigroup provides to its valued clients, this new service will:
Reduce potential for fraud
Reduce errors on the amounts paid
Eliminate service issues associated with signature verification
Issuance information is matched based on the data in the account number, U.S. dollar amount,
and check number of the authenticated MT 110. Once this information is validated, Citibank
honors the check presented. If you would like more information regarding this service, associated
fees and related agreement, please contact your Citigroup representative.
8:00 p.m. Statements and Split Statements
Citigroup provides you with two new options to receive end-of-the-day account statements via
MT940/950 at an early time so you can start your account reconciliation early. This is in addition
to the statements delivered at three different times9:00 p.m., 12:30 a.m. and 3:00 a.m. Eastern
Standard Time (EST).
8:00 p.m. Statements
At 8:00 p.m. EST, Citibank generates MT940/950 statements, which record transactions posted
from 7:30 p.m. the prior business day to 7:30 p.m. the current business day. Some transactions
posted after 7:30 p.m. will appear on the next day statement with correct value dates, such as
sweeps debits, overdraft interest accrual, ACH transactions, check postings, wire transfers in
case of CHIPS and Fedwire extension and other manual adjustments. The early statement
21
delivery will enable you to reconcile your U.S. Dollar accounts as soon as you start business the
next day morning, research and resolve exceptions timely should they occur.
When using 8:00 p.m. Statements, you need to consider the trade-off between the earlier delivery
and the completeness of statement and whether your back-office system is able to accept and
reconcile statements with postings of two value dates.
Split Statements
With this new capability, Citigroup will provide two statements for a value date:
An Intermediate Statement in the form of MT940/MT950 delivered at 6:00 p.m. EST, and
A Final Statement sent at 9:00 p.m. 12:30 a.m. or 3:00 a.m. EST per customers choice
Split Statements are suitable for you if you need to start reconciliation even earlier than 8:00 p.m.
EST and your back-office systems can handle two statements for the same day.
Payment Flow Management Services
By providing a direct window into our global payments systems, Payment Flow Management
Services lets you view up-to-the-minute informationand control the processing of your
payments. Available through CitiDirect Online Banking and SWIFTNet Browse, Payment Flow
Management Services offers four core web-based tools for you to access at any time:
Payment Monitoring allows you to track and monitor the status of payments as they move
through Citibanks funds transfer processing systems, and create customized reports by selecting
a variety of criteria.
Performance Reporting provides you with metrics to monitor the timeliness of payment
processing.
Balance Monitoring enables you to track your account balance in real-time.
Payment Prioritization gives you the power to reorder payments within Citibanks processing
queues.
Foreign Currency Payments
Using Citigroups wide network of offices and correspondents around the world, we are able to
effect foreign exchange payments quickly and efficiently from your existing U.S. Dollar account in
over 100 currencies. This service offers a great way to avoid the high costs of maintaining foreign
accounts in minor currencies.
Simply send your foreign currency payment MT103 or MT202 to SWIFT code CITIUS33DFU
(maximum payment size is $10 million). We then liaise with our Foreign Exchange Department to
ensure that the foreign currency disbursements are effected quickly and efficiently at Citibank
market rates. Citibank New York debits your U.S. Dollar account same day and effects the
22
payment with two-day spot value. The fee for the payment is then included with your regular
monthly billing statement. The service has availability to charge the beneficiary for fees.
Should the volume of your foreign currency payments in a particular currency grow, we
encourage you to explore our award-winning foreign currency transaction platform, WorldLink
Multicurrency Transaction Services. Working through your institution's current system, your
customers can:
Issue payments in a number of ways including wire transfers in over 100 currencies, and cheques
in over 30 currencies
Receive electronic funds transfers in over 30 currencies, with proceeds credited in the currency of
your choice
Gain volume / cost efficiencies for your foreign currency payments
The WorldLink service is delivered on a platform that best suits your needs: SWIFT, CitiDirect
Online Banking or File Transmission for enterprise-wide systems like SAP, Oracle and JDE
For more information, please visit the WorldLink Multicurrency Transaction Services Web site:
www.worldlink.com
Citibank CLS Settlement Services
Citibank is proud to be a market leader in offering CLS Settlement Services to all segments of
third parties. With CLS, we have built a bridge to link traditional correspondent banking with the
new future of Internet-based clearing networks.
Citibank CLS Settlement Services offers you instantaneous settlement of your foreign exchange
transactions streamlining the transaction process, improving efficiency across your operations,
and significantly reducing settlement risk.
Citibank CLS Settlement Services provides such value-added features as:
Integrated matching and reconciliation services
Real time access to information
Reliable and efficient payment processing
End-to-End tracking and reporting
 Full support of Internet and SWIFT interface capabilities
Citibank Customer Service
Citibank offers a world-class service model, with globally consistent delivery. Our service centers
are in local countries and regional hubs. They feature best-in-class people and technology. Most
of our service and operations centers are ISO9000 certified, ensuring consistency and accuracy
of measurements and process that will deliver a quality service experience.
23
Citibank provides specific points of contact from which our clients may obtain assistance covering
balance and transactional information related to their accounts. Our customer service representatives
handle all inquiries, quickly and efficiently; consistent with defined methods and service level
commitments.
Our service teams have access to information and payment systems, through powerful, multitasking
workstations. A state-of-the-art tracking system is used to maintain and monitor client
records and to provide regular updates on the status of pending investigations.
To obtain customer service support, please use the contact information provided to you by your
customer service representative. The following lists provide general branch or service center
contact information.

HINTS FOR FUNDS TRANSFER PROCESSING

Please ensure that you identify the correct account number in your outgoing payment orders and that
your incoming payments contain the correct account number.

Please ensure valid BIC addresses are used. If a BIC address is quoting 11 digits then the last three
digits identify the local branch of the bank. The full 11 digit BIC address must be provided if it
 appears in the BIC Directory.When making cross-border foreign currency payments, do NOT pay to
an 11 digit BIC address in Field : 57A:. An 11 digit BIC address is normally a Sub-Branch of the Bank
and may not clear foreign currency directly. For this reason, it is recommended that the 8 digit Head
Office BIC address is input in Field: 57A:, with the 11 digit Sub Branch BIC address input in Field 72
proceeded by prefix /ACC/FFC YR BRANCH

For Euro MT202 payments, please ensure a valid BIC address is used in Fields 52A & 58A.

For MT103+ payments, please ensure a BIC address is formatted in Field 57A and a valid IBAN in
Field 59.

Please ensure payments are released prior to the pre-agreed cut-off time.

Sort Codes can only be used when paying GBP currency to a bank within the UK.

Fedwire Numbers can only be used when paying USD currency to a bank within the US.

BC/SIC Codes can only be used when paying CHF currency to a bank within Switzerland .

ABOUT SWIFT

Established in 1973 in Brussels.

 Fundamental operating procedure were established in 1975

A Co-operative Society formed under the Belgian law and is owned and controlled by its member
banks and financial institutions.

Started in 1973 supported by 239 banks in 15 countries.

Mission of creating a shared worldwide data processing and communications link and common
language for exchange of financial transactions.

Went online in 1977 with 518 banks in 17 countries and volume of 3.4million messages.

Uses the same physical network as that used for telephone & fax communication, usually
provided by the local telecom SPs.

Uniquely identifies member institutions with an ID code called a Bank Identification Code (BIC)

Provides 9 categories of Message Types (MT ) for different financial transactions

How does SWIFT work?

A physical telecommunications network connects all members of Swift to each other.

This physical network is the same as that used for telephone and fax communication, and is
usually provided by the Telecom providers in each members country.

Swift communication software is available from Swift in Brussels.

Swift communication Software is installed on computers in each members location.

Swift works in much the same way as the Internet, and it enables members to send messages to
each other.

The message structure, format and contents are common across banks - only the method of
viewing the messages differs.

Swift messages use a common set of codes that all members use when communicating with
each other.

It helps to speed up communication

This correct coding of messages is referred to as message formatting

CATEGORIES

Category 1 Customer Transfers

Category 2 Financial Institution Transfers

 Category 3 Treasury Markets

Category 4 Collections and Cash Letters

Category 5 Securities Markets

Category 6 Precious Metals

Category 7 Documentary Credits and Guarantees

Category 8 Travelers Cheques

Category 9 Cash Management & Customer Status

CITIINBX :Institution - Citibank

CITIINBX :Country - India
CITIINBX :Location - Mumbai (Bombay)
CITIINBXIBM :Branch Chennai

NOSTRO & VOSTRO

Nostro A/c

A banking term to describe an account one bank holds with a bank in a foreign country, usually in
the currency of that foreign country.

Nostro is derived from the Latin term which means "ours.

 Nostro Account is how the account of an Indian bank with an overseas correspondent is referred
to. Mirror Account is "an exact replica of the entries in the Nostro account, but on the opposite
side.

Nostro accounts are mostly commonly used for currency settlement, where a bank or other
financial institution needs to hold balances in a currency other than its home accounting unit.

In very simple terms A Nostro is our account of our money, held by you

Vostro A/c ?

Local currency account maintained by a local bank for a foreign (correspondent) bank. For the
foreign bank it is a nostro account.

Vostro is Latin term which means for yours.

In very simple terms A Vostro is our account of your money, held by us

OURS & THEIRS

An OUR account in a correspondent bank, the Nostro, is always held in a foreign currency

Citi Mumbai will refer to its US dollar account with Citi New York as a USD Nostro.

A THEIR account or Vostro is always held in local currency

Citi New York would refer to the above account as Citibank Indias Vostro

IBAN
The International Bank Account Number (IBAN) is an international standard for identifying bank
accounts across national borders.

It was originally adopted by the European Committee for Banking Standards. The IBAN was
developed to facilitate payments within the European Union.

The IBAN is not yet used for routing, because the IBAN has not been widely adopted outside
Europe, among other reasons.
 At present, the United States does not participate in IBAN. Any U.S. participation in IBAN would
likely be tied to the standards of the U.S. Automated Clearing House.

Another notable non-participant in IBAN is the People's Republic of China

CLEARING SYSTEMS
The Fed Wire USD

CHIPS USD (Clearing House Interbank Payment System)

CHAPS - GBP & EUR (Clearing House Automated Payment System)

TARGET EUR (Trans-European Automated Real-time Gross settlement Express Transfer

system)

Country Clearing System

United States Federal Reserve, CHIPS
United Kingdom CHAPS
France SNP
Germany EAF
Ireland IRIS
Europe(EURO) Target

FEDWIRE IDENTIFICATION CODE

The Federal Reserve System is made up of 12 regional reserve banks together with a
Board of Governors.

Fed Wire is an electronic funds and securities transfer system.

All member banks having a Federal Reserve account with a district Federal Reserve
Bank.
 Fed Wire routing codes are made of nine digits.

The Fed Wire is a Real Time Gross Settlement (RTGS) system. It is Real Time in the
sense that it processes each transaction as it is initiated rather than handling the
transactions in batches at intervals.

It is a Gross settlement system in that it settles each transaction individually rather accumulating
transactions and settling on a net basis.

CHIPS Universal Identification Number (UID)

CHIPS, Clearing House Interbank Payments System, is a bank-owned payments system for
clearing large value U.S. Dollar payments. The Clearing House Association uses Universal
Identification Numbers (UIDs) to identify financial institutions and corporations that hold U.S.
dollar accounts in the United States. The number is designated in the listings as UNIV-ID. The
UID is a six-digit number that is unique to each institution but is common among all CHIPS
member banks maintaining an account for that institution. Whenever your bank instructs Citibank
to pay funds to another bank in the U.S. via CHIPS, the CHIPS UID may be included to qualify
the payment. Alternatively, a payment may be qualified by using the receiving banks SWIFT/ BIC
address or account number. Any of these three qualifiers will facilitate automated processing by
the receiving bank.
The Clearing House Association uses Universal Identification Numbers (UIDs) to identify financial
institutions and corporations that hold U.S. dollar accounts in the United States. The number is
designated in the listings as UNIV-ID. The UID is a six-digit number that is unique to each
institution but is common among all CHIPS member banks maintaining an account for that
institution. Whenever your bank instructs Citibank to pay funds to another bank in the U.S. via
CHIPS, the CHIPS UID may be included to qualify the payment. Alternatively, a payment may be
qualified by using the receiving banks SWIFT/BIC address or account number. Any of these three
qualifiers will facilitate automated processing by the receiving bank.

Bank Identifier Code (BIC)/SWIFT Address

Bank Identifier Code (BIC) is a universal bank identifier that is unique to each institution. The
Bank Identifier Code for SWIFT member banks is their SWIFT address. For instance, Citibank
NA, New Yorks SWIFT/BIC is CITIUS33. Digits 1-4 represent the bank; the two digits following
(positions 5-6) represent the country. Positions 7-8 represent a location (city or region) in that
country.

Banks that are not SWIFT members are assigned unique identifiers that contain a 1 in the eighth
position of their SWIFT/BIC address. For example, the BIC for any international bank in Paris,
France (a non-SWIFT member) would be ANYBFRP1. Bank Identifier Codes should be used
whenever possible in your funds transfer messages to facilitate automated processing

Chips Clearing system & Identification Code

The New York Clearing House Association uses Chips Identification Code to identify most banks
which hold a USD account in US.
 The Participants in CHIPS has a 4 digit CHIPS Routing number, that is used in addressing
messages over the CHIPS system. The CHIPS ID can be used to identify these banks in
payments messages. Example: 0008 CITIBANK NY CHIPS CODE
CHIPS assign 6 digit identification numbers to all banks reported by its participants to have
accounts with them. These numbers are known as CHIPS Universal Identifiers or UIDs. Example
001251 is UID for ING BANK (FRANCE) S.A.
The payments made over CHIPS are not final when sent, but only become final once the
participants have settled with each other after the close.
At the end of the day CHIPS calculates each participants net position that is the sum of all the
payments it sent out and all the payments it received. Each participant will either owe or be owed
its net position. CHIPS is thus a multilateral Netting system.
CHAPS is a British clearing system which offers same-day sterling and euro fund transfers.
CHAPS is a member TARGET2
To be used only for pound sterling payments (GBP)
Sort Codes are used to identify banks on CHAPS, the Sort Codes are 6 numerical Long.

TARGET 2 Clearing System & Identification Code

Stands for Trans European Automated Real Time Gross Settlement Express Transfer

TARGET2 is the RTGS system for the euro. It is used for the settlement of central bank
operations, large-value euro interbank transfers as well as other euro payments. It provides real-
time processing, settlement in central bank money and immediate finality.

TARGET2 is a payment system in which processing and settlement take place continuously ("in
real time") rather than in batch processing mode. Like this, transactions can be settled with
immediate finality. "Gross settlement" means that each transfer is settled individually rather than
on a net basis.

BIC Codes are used to identify banks on TARGET2.

SORT CODE
A sort code is a number which is assigned to a branch of a bank for internal purposes. Banks use
sort codes as it is easier than writing the full address of the branch out and it tells customers
which branch they are at.In the United Kingdom and Ireland, the numbers are six digits long,
usually formatted into pairs separated by hyphens (e.g. 12-34-56). In Germany, these numbers
(called "BLZ", for "Bankleitzahl", meaning "bank routing numbers") are eight digits long, normally
formatted 3-3-2 (e.g. 100 200 30). In Canada, the bank transit number is 8 digits long. This is
divided into a 5 digit branch number and 3 digit institution code, for example 10000-200. In
Australia, the BSB number is 6 digits long; two groups of three numbers (eg. 100-200). In
Sweden, the number is four digits long(e.g. 1234), or, in the case of some accounts at the bank
Swedbank, they are five digits in length (e.g. 1234-5) and precede the bank account number for
interbanking purposes, with a hyphen added after the fourth digit.

Modes of Communication
 GCN Global Communication Network

Global Communications System

Basically used for branch to branch communication
Proprietary system of Citibank
Cheaper than Swift messaging system
Secure
5 digit code for ID

SWIFT

Established by Banks
Universally followed
Reliable and secure
BIC coding system
Constant improvement

Bank Identification Codes(BIC)

ISO 9362 (also known as SWIFT-BIC, BIC code, SWIFT ID or SWIFT code) is a standard format
of Bank Identifier Codes approved by the International Organization for Standardization (ISO).
It is the unique identification code of a particular bank.
These codes are used when transferring money between banks, particularly for international
funds transfer, and also for the exchange of other messages between banks.
Up to now SWIFT has issued up to 90.000 BICs world-wide.
SWIFT in its role of ISO registration authority issues BICs to financial institutions connected to the
SWIFT network as well as to non-connected institutions.
The BIC is used in financial transactions, client and counterparty data bases, compliance
documents and many others.

Connected and unconnected BICs

BICs identify both Financial Institutions connected and not connected to the SWIFT network.
However, a BIC of a financial institution not connected to the SWIFT network has the location
code ending with the digit "1", for example KESADEF1. Such BIC is also called a non-SWIFT BIC
or a BIC1.
A BIC for a financial institution connected to the SWIFT network has a location code ending with a
character other than "1", for example BNPAFRPP. Such BIC is also called a connected BIC or a
SWIFT BIC. Consequently, only a SWIFT BIC can appear in the header of a SWIFT message.
Test and Training BICs
In SWIFTFIN messaging system, a BIC with a 0 (zero) in the 8th position is a Test & Training BIC.
Such a BIC cannot be used in live FIN messages.

POINTS TO CONSIDER
 Though the Swift Network allows use of certain special characters it is always
safer not to use any special characters anywhere in the SWIFT message except in
front of the party identifiers like FW SC etc.

Do not give repetitive information in any field as this affects STP for e.g. Dont use
both IBAN and the account number if the account no is part of the IBAN itself.

Be very thorough with the country regulations and their impact on the SWIFT
messages especially regulatory reporting.

FIELD 20 : Must not start or end with a / and should not contain 2 consecutive //.

Sort Codes can only be used when paying GBP currency to a bank within the UK.

Fed wire Numbers can only be used when paying USD currency to a bank within the
US.

Please ensure payments are released prior to the pre-agreed cut-off time.

Message pertaining to Fund transfer

MT103 - Customer Wire Transfer: This message is sent only when the remitter or
the beneficiary is an individual.

MT202 - Bank Wire Transfer: This is message is sent only the funds transfer is
between two banks/financial institutions.

MT199 Free Format Message: This is an unstructured tested/authenticated

message wherein the details can be given in the text format. Tested message can
be sent to another bank only if the bank which is initiating the message has got a
BKE with the receiving bank.

MT999 Free Format Message: This is similar to MT199 except for the fact that
this is a untested/un-authenticated message. This message can be sent to any
bank participating in the SWIFT network.

MT900 Debit Confirmation: This message is usually sent by the correspondent

bank confirm that the debit has been posted to the nostro account.

MT910 Credit Confirmation: This message is usually sent by the correspondent

bank confirm that the credit has been posted to the nostro account.

MT940 Account Statement: This is statement of the account sent from one bank
to another.

MT950 Account Statement: This is statement of the account sent from bank to
the customer.

FIELDS IN MESSAGES
FIELDS
 FIELD 20 : SENDERS REFERENCE MANDATORY 16 ALPHANUMERIC
Must not start or end with a / and should not contain 2 consecutive // (T26)
FIELD 23B: BANK OPERATION CODE MANDATORY 4C ALPHA
CRED No Swift Service Level Involved Applicable to all Citibanks unless otherwise
specified.
CRTS Credit transfers for Test purposes
SPAY to be processed according to SWIFT pay service level normally not applicable to all
of us.
SSTD to be processed according to Standard Service Level agreement Not Applicable
in general
SPRI Priority Service level again Not applicable
Code CRTS cannot be used on FIN network
FIELD 23E INSTRCUTION CODE: OPTIONAL 4C/30X
4C IS ALPHA ONLY ONE OF THE GIVEN CODES IN THE LIST TO BE USED
30X IS THE FOLLOWING INFORMATION WHICH IS ALPHANUMERIC
EG : :23E:SDVA/SWR0T5566756
HOWEVER IF ONLY THE CODES ARE USED THEN / SHOULD NOT BE GIVEN AT THE END.
SDVA Payment must be executed with same day value to the beneficiary.
INTC The payment is an intra-company payment, ie, a payment between two companies
belonging to the same group.
CORT Payment is made in settlement of a trade, eg, foreign exchange deal, securities
transaction.
BONL Payment is to be made to the beneficiary customer only.
HOLD Beneficiary customer/claimant will call; pay upon identification.
CHQB Pay beneficiary customer only by cheque. The optional account number line in field 59
must not be used.
PHOB Please advise/contact beneficiary/claimant by phone.
TELB Please advise/contact beneficiary/claimant by the most efficient means of
telecommunication.
PHON Please advise account with institution by phone.
TELE Please advise account with institution by the most efficient means of telecommunication.
PHOI Please advise the intermediary institution by phone.
TELI Please advise the intermediary institution by the most efficient means of
Telecommunication
Field 26T: Transaction Type Code Optional - 3a Not yet defined.

Field 32A: Value Date/Currency/Interbank Settled Amount 6n3a15d Known rules not dealt
with in detail.
The value date appearing in the funds transfer message should be valued for today or in the
future(not more than 28 calendar days),
It should not be value dated in the past.
Should you make a payment and need to have the value date adjusted to the past, Please do the
following:
Value the payment with the correct/current processing days value.
Send a separate message to your customer service representative asking that the value of the
payment be adjusted to whatever date you need.
Field 33B: Currency/Instructed Amount optional 3a15d ccy code ( 3 digits ) and amount

Currency must be a valid ISO 4217 currency code (Error code(s): T52).
The integer part of Amount must contain at least one digit. A decimal comma is mandatory and is
included in the maximum length. The number of digits following the comma must not exceed the
maximum number allowed for the specified currency (Error code(s): C03, T40, T43).
If field 33B is present in the message received, it has to be forwarded unchanged to the next
party.
This field must be present when a currency conversion or an exchange has been performed on
the Sender's side
Field 36: Exchange Rate OPTIONAL 12D
 The integer part of Rate must contain at least one digit. A decimal comma is mandatory and is
included in the maximum length (Error code(s): T40, T43).
This field must be present when a currency conversion or an exchange has been performed on
the Sender's side.
Field 50a: Ordering Customer MANDATORY
/34X If the first line of the field is an account number should begin with a / followed by the
account number
4*35x below the account number is allowed for name and address of the ordering customer. If
only the name and address are used the the field should not begin with a /.
Field 51A: Sending Institution optional party identifier can be used and should begin with a
/. If only a swift address is used then this field should not begin with a /.
Field 52a: Ordering Institution optional Option a and D are allowed
This field specifies the financial institution of the ordering customer, when different from the
Sender
The coded information contained in field 52a must be meaningful to the Receiver of the message.
Option A is the preferred option.
Option D should only be used when the ordering financial institution has no BIC.
Field 53a: Sender's Correspondent - optional

Absence of this field implies that there is a unique account relationship between the Sender and
the Receiver or that the bilaterally agreed account is to be used for settlement.
Option A is the preferred option.

If there is no direct account relationship, in the currency of the transaction, between the Sender
and the Receiver (or branch of the Receiver when specified in field 54a), then field 53a must be
present.
Field 54a: Receiver's Correspondent optional used in cover payments only When the funds
are made available to the Receiver's branch through a financial institution other than that
indicated in field 53a, this financial institution, ie, intermediary reimbursement institution shall be
specified in field 54a
Option A is the preferred option.

Field 55a: Third Reimbursement Institution optional not applicable

Field 56a: Intermediary Institution optional used in seriel payments only.

Option A is always the preferred option.
Option D must only be used when there is a need to be able to specify a name and address, eg,
due to regulatory considerations.
Field 57a: Account With Institution optional

This field specifies the financial institution - when other than the Receiver - which services the
account for the beneficiary customer. This is applicable even if field 59 or 59A contains an IBAN.
When one of the codes //FW (with or without the 9-digit number), //AU, //SC, //CP or //RT is used,
it should appear only once and in the first of the fields 56a and 57a of the payment instruction.
When it is necessary that an incoming S.W.I.F.T. payment be made to the party in this field via
Fedwire, US banks require that the code //FW appears in the optional Party Identifier of field 56a
or 57a.
When it is necessary that an incoming S.W.I.F.T. payment be made to the intermediary or the
account with institution via real-time gross settlement (RTGS), the code //RT should appear in the
optional Party Identifier of field 56a or 57a.
The code //RT is binding for the Receiver. If it is used with option A, it must not be followed by any
other information. If it is used with option C or D, it may be followed by another domestic clearing
code.
Option A is the preferred option.
Option D must only be used when there is a need to be able to specify a name and address, eg,
due to regulatory considerations.
Field 59a: Beneficiary Customer - mandatory the first line to be a acct no beginning with a /. If
the account number is not used in 59 then the name of the bene should not begin or end with a /
 If a BIC is used then also the line should not begin with a /.
This field specifies the customer which will be paid.

At least the name or the BIC/BEI of the beneficiary customer is mandatory.

If a BEI is specified, it must be meaningful for the financial institution that services the account
for the beneficiary customer
Field 70: Remittance Information - optional 4*35x
If codes like INV RFB or ROC are used then it should be used as
/INV/vevnoebj048646846 OR /RFB/kcjbjp38t36323 y35-68987
If only the codes are used then / should not be used.
For national clearing purposes, the Sender must check with the Receiver regarding length
restrictions of field 70.
The information specified in this field is intended only for the beneficiary customer, ie, this
information only needs to be conveyed by the Receiver.
Multiple references can be used, if separated with a double slash, //. Code must not be repeated
between two references of the same kind. EG :70:/RFB/BET072
:70:/INV/abc/SDF-96//1234-234///ROC/98IU
Field 71A: Details of Charges mandatory 3a only our / ben / sha allowed
This field specifies which party will bear the charges for the transaction.
Field 71F: Sender's Charges
Currency must be a valid ISO 4217 currency code (Error code(s): T52).
The integer part of Amount must contain at least one digit. A decimal comma is mandatory and is
included in the maximum length. The number of digits following the comma must not exceed the
maximum number allowed for the specified currency (Error code(s): C03, T40, T43).
These fields are conveyed for transparency reasons.
The net amount after deduction of the Sender's charges will be quoted as the inter-bank settled
amount in field 32A.
This field may be repeated to specify to the Receiver the currency and amount of charges taken
by preceding banks in the transaction chain. Charges should be indicated in the order in which
they have been deducted from the transaction amount. Ie, the first occurrence of this field
specifies the charges of the first bank in the transaction chain that deducted charges; the last
occurrence always gives the Sender's charges.
Field 71G: Receiver's Charges optional
This field specifies the currency and amount of the transaction charges due to the Receiver.
Normally will not be used as we cannot determine the amount of receivers charges.
Field 72: Sender to Receiver Information optional
Unless bilaterally agreed otherwise between the Sender and the Receiver, one of the following
codes must be used, placed between slashes ('/'):
ACC Instructions following are for the account with institution.
INS The instructing institution which instructed the Sender to execute the transaction.
INT Instructions following are for the intermediary institution.
REC Instructions following are for the Receiver of the message.
USAGE RULES
Field 72 must never be used for information for which another field is intended.
Each item for which a code exists must start with that code and may be completed with additional
information.
Each code used must be between slashes and appear at the beginning of a line. It may be
followed by additional narrative text. Narrative text relating to a preceding code, which is
continued on the next line(s), must start with a double slash //, and, if used, must begin on a new
line. Narrative text should preferably be the last information in this field.
It is strongly recommended to use the standard codes proposed above. In any case, where
bilateral agreements covering the use of codes in this field are in effect, the code must conform to
the structured format of this field.
Field 77B: Regulatory Reporting optional 3*35x
This field specifies the code(s) for the statutory and/or regulatory information required by the
authorities in the country of Receiver or Sender. Where the residence of either ordering customer
or beneficiary customer is to be identified, the following codes must be used, placed between
slashes ('/'):
 ORDERRES Residence of ordering customer
BENEFRES Residence of beneficiary customer
USAGE RULES
Country consists of the ISO country code of the country of residence of the ordering customer or
beneficiary customer.
The information specified must not have been explicitly conveyed in another field.
EXAMPLE :77B:/ORDERRES/BE//MEILAAN 1, 9000 GENT
Field 77T: Envelope Contents not covered as this may not be used

MT103+
The MT103+ is a subset of the core MT103. It limits the number of fields and the number of field
options to those that allow STP. This restricted format is validated on the S.W.I.F.T. network to
 guarantee the receiver a correct straight through processable message. The fact that the
MT103+ is a subset of the Core MT103 allows any receiver to process the MT103+. A receiver
does not have to know the message is identified as a + message. However, the message
should result in higher STP rates and lower processing time.

The EC Regulation on cross-border payments, effective 1st July 2003, imposes on banks the
elimination of the price differential between the cross-border and domestic transactions.
Therefore, the European banking community has agreed on the conditions to consider a payment
as STP. Accordingly, a payment is thus defined as STP only if it is made with an MT102+ or
MT103+ message, containing amongst others a correct IBAN (International Bank Account
Number) for the beneficiary customer.

The most important additional areas of MT103+ validation, compared to the core MT103, are:

Financial Institutions can be identified with a BIC only (Fields 52a; Ordering Institution, 54a:
Receivers Correspondent, 55a: Third Reimbursement Institution, 56a: Intermediary Institution and
57a: Account with Institution may only be used with letter option A).

The instruction code list is reduced to codes that can be processed straight through (Field 23E:
Instruction Code may only contain codes CORT, INTC and SDVA).

The beneficiarys IBAN account number is mandatory in order to ensure STP until the credit on
the account of the final recipient.

The use of the free format field is reduced. (In Field 72: Sender to Receiver Information, code
/INS/ must be followed by a valid BIC, codes /REJT/ & /RETN/ must not be used and ERI
information may not be present).

In practical terms, the account number line of Field 59a (Beneficiary Customer) of any European
MT102+ or MT103+ must contain an IBAN. An MT102+/103+ is considered as European
whenever the Sender, Receiver, and Field 57A (Account with institution) has a BIC code of which
the country code falls within the European Validation list of countries. Countries that are
concerned are:

Andorra, Austria, Belgium, Bouvet Island, Switzerland, Germany, Denmark, Spain, Finland,
France, United Kingdom, French Guiana, Gibraltar, Guadeloupe, Greece, Ireland, Iceland, Italy,
Liechtenstein, Luxembourg, Monaco, Martinique, The Netherlands, Norway, Saint Pierre and
Miquelon, Portugal, Reunion, Sweden, Svalbard and Jan Mayen Islands, San Marino, French
Southern Territories and Vatican City State

MT 103 MESSAGE
0000 00CITIUS33AXXX00000
 0154 23GCNNYLCCAXXX00000
103 02
:20:(Our Ref Num) 172415
:23B:(Bank Operation Code) CRED
:32A:(Value Date Amount) 040921USD10000,75
:33B:(Currency/Instructed Amount) USD10000,75
:50K:(Ordering Customer) CITIBANK NA NEW YORK
172415
:53B:(Senders Correspdt)
/nostro123
CITIBANK N.A.
:56D://FW021000089
CITIBANK, N.A...
:57D:(Account with Institution)/12345
Big Bank
:59:(Beneficiary) /10203010
AMERICAN COMPANY.
USA
:70:(Payment details)
/RFB/INVXXX
BEING BILL PROCEEDS
25.00 USD 78.00 USD
PAYMENT COMM. 164.77 USD
:71A:(Charge details)
BEN
:71F:(Sender Charges)
USD0,

MT 202
0000 00CITIUS33AXXX00000
1123 23GCNNYLCCAXXX00000
202 02
:20:(Transaction Reference Number)
987456
:21:(Related Reference)
abc123
:32A:(Value Date, Currency, Amount)
040923USD10000
:52D:(Issuing bank) CITIBANK NA NEW YORK
987456
:53B:(Reimbursing bank)
/Nostro123
CITIBANK N.A.
:57D:(Advise through bank)
//CP0326
BANK OF CHINA,
:58D:(Beneficiary bank)
//124545
BANK OF CHINA
:72:(Bank to Bank Information)
/BNF/ILC 20167797
//BEING BILL PROCEEDS
//CORR CHARGES 200 USD

MT 202
Status Tag Field Name Content / Options
M 20 Transaction Reference No 16x
 M 21 Related Reference 16x
M 32A Value Date, Ccy Code & Amt 6!n3!a15d
O 52a Ordering Institution A or D
O 53a Senders Correspondent A, B or D
O 54a Receivers Correspondent A, B or D
O 56a Intermediary A or D
O 57a Account with Institution A, B or D
M 58a Beneficiary Institution A or D
O 72 Sender to Receiver Information 6*35x

MT300 (FOREIGN EXCHANGE CONFIRMATION):

MT910 (CONFIRMATION OF CREDIT):

MT199 (TESTED FREEFORMAT MESSAGE

MT 202 COV
 CFR2530 CFR0550 CFR1972 CVR1959
LONFU
.LONXPCB 181520
TEST NR
{1:F01CITIGB2LDXXX2977357954}
{2:O2021520090318FCMAGB2LAXXX61033017100903181520N}{3:{119:COV}}{4:
:20:COV202DEFECT
:21:noref
:32A:090511EUR71222,00
:53B:/755605
:58D:/780839
aaaa
:72:/ACC/LUCKY
:50F:CUST/DE/ABC BANK/123456789/8-123456
1/MANN GEORG
8/7890
:59:/8630224
ABCDEFGHKFKFKDFJKDAFJKDF
-}{5:{MAC:FFFFFFFF}{CHK:97848752692D}{SAC}}
=03181520 LN HJ55411

Message Types
 MT1XX:
MT101: Request for Transfer
MT102: Mass Payments Message
MT103: Single Customer Credit Transfer
MT104: Customer Direct Debit
MT110: Advice of Cheque
MT111: Request for Stop Payment of a Cheque
MT112: Status of a Request for Stop Payment of a Cheque
MT2XX:
MT200: Financial Institution Transfer for Its Own Account
MT201: Multiple Financial Institution Transfer
MT202: General Financial Institution Transfer
MT203: Multiple General Financial Institution Transfer
MT204: Financial Markets Direct Debit Message
MT205: Financial Institution Transfer Execution
MT206: Cheque Truncation Message
MT207: Request for Financial Institution Transfer
MT210: Notice To Receive
MT256: Advice of Non-Payment of Cheques
MT290: Advice of Charges, Interest and Other Adjustments
MT291: Request for Payment of Charges, Interest, and Expenses
MT3XX:
MT300: Foreign Exchange Confirmation
MT303: Forex Currency Option Allocation Instruction
MT304: Advice Instruction of a Third Party Deal
MT305: Foreign Currency Option Confirmation
MT306: Foreign Currency Option Confirmation
MT307: Advice/Instruction of a Third Party FX Deal
MT308: Instruction for Gross/Net Settlement of Third Party Fx Deals
MT320: Fixed Loan/Deposit Confirmation
MT321: Instruction to Settle a Third Party Loan/Deposit
MT330: Call/Notice Loan/Deposit Confirmation
MT340: Forward Rate Agreement Confirmation
MT341: Forward Rate Agreement Settlement Confirmation
MT350: Advice of Loan/Deposit Confirmation
MT360: Single Currency Interest Rate Derivative Confirmation
MT361: Cross Currency Interest Rate Swap Confirmation
MT362: Interest Rate Reset/Advice of Payment
MT364: Single Currency Interest Rate Derivative Termination/Reocuping Confirmation
MT365: Cross Currency Interest Rate Swap Termination/Recouponing Confirmation
MT380: Foreign Exchange Order
MT381: Foreign Exchange Order Confirmation
MT390: Advice of Charges, Interest, and Other Adjustments
MT391: Request for Payment of Charges, Interest and Other Expenses
MT9XX:
MT900: Confirmation of Debit
MT910: Confirmation of Credit
MT920: Request Message
MT935: Rate Change Advice
MT940: Customer Statement Message
MT941: Balance Report
MT942: Interim Transaction Report
MT950: Statement Message
MT960: Request for Service Initiation Message
MT970: Netting Statement
MT971: Netting Balance Report
 MT972: Netting Interim Statement
MT973: Netting Request Message
MT985: Status Enquiry
MT986: Status Report
MT990: Advice of Charges, Interest, and Other Adjustments
MT991: Request for Payment of Charges, Interest, Expenses
MT992: Request for Cancellation
MT999: Free Format Message
 What is Serial Payment
The serial method involves sending an MT103 (with all the information necessary
to make the funds transfer) to the first correspondent in the chain.

The correspondent then forwards the customer instruction to the next bank and so
on until the final account-with institution receives it to credit the beneficiary.

Each institution in the communication chain receives the same level of detail
about the transaction at each step

What is Cover Payment

Cover payments consist of two messages

An MT103 message directly to the account-with institution

A series of MT202 messages passed via correspondent banks (the cover)

When the account with institution receives the MT103

it gives two essential pieces of information:

1. Who to credit (the account-with institutions customer)

2. Where they should expect to receive the funds

It does not need to include any information about the intermediary banks in the
chain

The MT202 is a bank to bank message that does not include any information about
the ultimate beneficiary.

It simply indicates the institution to which the payment should be passed on.

The account with institution needs to match up the two messages for the payment
to be completed.
 Selection of SP & CP
The Originating bank can choose the most suitable method.

The other banks in the chain have no choice but to follow the method chosen by
the Originating bank.

o When do we choose to use cover payments ?

Direct and Cover is the preferred method when there are more than 2 banks in the
payment chain.

o When not to use Cover payments ?

Paying USD into the United States

Paying EUR into Europe.

Difference between SP & CP

 Pros and Cons of SP & CP
Serial Payment

PROS

Serial payments are simpler. The remitting bank sends only one message

Less reconciliation is required by the bank

CONS

Time issues

Potentially, each bank in the chain can take charges

Cover Payment

PROS

Charges are Less

CONS

More reconciliation is required by the bank

Cover payments are Complex as remitting bank sends two messages

 FATF

The Financial Action Task Force (FATF) issued Special Recommendation VII in October 2001,
with the objective of enhancing the transparency of electronic payment transfers (wire transfers)
of all types, domestic and cross border, thereby making it easier for law enforcement to track
funds transferred electronically.
Requirement
It is required to ensure that complete information regarding the Payer ( Ordering Customer) is
available in all Outgoing Customer Transfers ( MT103 ) generated in Flexcube
It is required to validate that complete information regarding the Payer is available in all incoming
payments received by Flexcube. The complete payer information is required only for ExtraEU
payments (where either Remitter or Beneficiary is in NONEU Countries). An IntraEU Payment
(where both Remitter and Beneficiary are in EU Countries) would be compliant, if Line 1 is an
Account number line or if Line 1 has an identifier.
If, for Incoming Payments, appropriate information regarding the Payer is not available
(depending on whether the payment is an IntraEU payment or an ExtraEU payment); it will be
marked as Noncompliant and optionally, moved to the FATF Exception Queue.
Validations for complete payer information are only for Incoming payments. No Validation will be
done for Outgoing Payments and Pass through payments.
The new option F for Field 50 Ordering Customer, will be available for Customer Transfers
(MT 103) generated in Flexcube.
Following reports can be generated(a) Incoming Payments that are Noncompliant i.e. the
appropriate Payer details are missing and (b) Incoming Payments that are Compliant i.e. the
appropriate Payer details are present.

Compliance Process
The compliance process will be applicable only for Incoming payments.
The process of checking the compliance for Incoming Payments will be done in two steps. In the
first step, the incoming payment will be subjected to compliance checks. If the incoming payment
is compliant, the step two would not be applicable. If the incoming payment is noncompliant, in
step two, check would be done to see if the incoming payment matches any of the Rules setup
for Automatic Rejection / Automatic Override.
If the incoming payment matches with any of the Rules setup for Automatic Rejection / Automatic
Override, the conditions setup in the rules would determine further processing for the incoming
payments.
If the incoming payment does not match with any of the Rules setup for Automatic Rejection /
Automatic Override, the incoming payment would be uploaded in Flexcube.

Step -1 Compliance Checks

An incoming payment will be termed Noncompliant, based on the validations mentioned below :
Line 1 of Ordering Customer Line 1 should be an account number line i.e. the first character of
Ordering Customer should be a slash /. If the Line 1 is not an account number line, check would
be done ONLY for the existence of data in Line 1 and not for the meaningfulness of the data. If
there is no data in Line 1, the payment would be marked as Noncompliant.
Check will be done against lines 2 to 4 for existence of data ONLY. If any of the lines from 2 to 4
do not have data, the payment would be marked as Noncompliant
An IntraEU payment ( where both remitter and beneficiary are in EU countries ) would be
deemed compliant, if the first condition is satisfied. An ExtraEU payment ( where either the
remitter or beneficiary are in NonEU countries ) would be deemed compliant, only if the both the
conditions are satisfied.
Step 2 -Automatic Rejection / Automatic Override for Noncompliant messages
 All the incoming payments marked as noncompliant will now be checked against the rules setup
( if any ) for Automatic Rejection / Automatic Override
A new maintenance is introduced where it is possible for the user to setup rules to trigger (a)
Automatic Rejection or (b) Automatic Override.

SEPA
The EPC (European Payments Council) together with the banks have agreed to create SEPA
(Single Euro Payments Area) that will be operational with critical mass by 2010. SEPA has been
developed to make Euro payments a transparent domestic product from a customer point of view,
(this includes todays cross border transfers) throughout the EU / EEA.
SEPA CSMs ( Clearing and Settlement Mechanisms ) require that all SEPA Credit transfers
follow strict formatting rules to ensure high STP ( Straight through processing ) rates, the first
SEPA Credit Transfer clearing will be live on 1st January 2008, ( STEP2 SEPA Credit Transfer
service ). SEPA Credit Transfers can only be processed where the beneficiary bank is a Direct or
Indirect Participant for that CSM. Initially not all banks will participate in SEPA, however the EPC
anticipates that by 2010 a critical mass of banks and CSMs will participate.
Currently the low value Euro domestic clearing systems provide the main transaction volume that
will migrate to SEPA, however as a transaction value limit has not been agreed for SEPA as yet, it
is assumed that a percentage of the high value clearing volume may also migrate especially
when the same day clearing cycle is implemented.
Due to the SEPA requirements, if the Domestic low value clearing systems do not become SEPA
compliant after 2010 they may potentially not be able to continue as a viable clearing service. It is
expected that those that wish to continue providing clearing services will migrate to the SEPA.
SEPA has been designed to provide a process for effecting payments within Europe with the
transparency to consider all transactions as Domestic.
All Citibank Euro zone branches will become indirect participants of Citibank London and will
process their SEPA traffic via the London hub.
Instructions received from nonEU/EEA and Switzerland, where the instructing bank is outside
this region cannot be processed via a SEPA clearing. If the ordering institution is outside the
EU/EEA and Switzerland and their BIC is included on the SEPA Credit Transfer, then the
transaction will be rejected.

SEPA Enhancements

Assumptions
Only CITIBANK London will be a Direct Participant in SEPA. Other branches would be Indirect
Participants.
All SEPA Payments will always be routed through CITI London.
Branches will identify the SEPA transfers and include the SEPA information in the Message sent
to CITI London.
Message exchange between Branches and CITI London will be in regular SWIFT MT103
formats with the SEPA information.
CITI London will interact with SEPA in XML message formats.
Payment instructions from Customers via CITIDIRECT will undergo changes to include the SEPA
information
Low value domestic payments will continue to be processed in Local Payments module in
FLEXCUBE in CEE Countries. As such, no SEPA changes are envisaged for LP module.
FT and PW module gateways will undergo changes to validate for SEPA enhancements in case
of SEPA payments.
FX, MM, SI and LD modules of FLEXCUBE will also be able to generate SEPA Payments.

Requirement
Broadly, the following are changes envisaged for SEPA in FLEXCUBE:
Ability to capture SEPA mandated information in the SEPA transactions. This would need
changes to the interfaces for the various channels transactions come through.
 Validation for presence SEPA mandated information in the SEPA transfers for manually input
transactions.
Transactions value limit.
SEPA Cut-off time.
Handoff SEPA information in the Customer Statements and Fox Handoff

FX TRANSACTION TYPE
Forex transactions can be executed on spot or forward basis
Cash - when foreign currency delivery is effected on the very transaction date (*Value Date
= Transaction Date)
TOM - is relevant in some cases where the value date for foreign currency delivery is the
next working day (*Value Date = Transaction Date + 1 Common Working Day)
Spot - where the value date for foreign currency delivery is two working days from the date
of transaction (*Value Date = Transaction Date + 2 Common Working Days)
Forward - when the *value date (for foreign currency delivery) lies beyond spot *Value date
= settlement date
An Outright deal buying and selling of a foreign currency against the local currency for
spot or forward value
A Cross currency deal or a Switch buying and selling of a foreign currency against another
for spot or fwd value
A swap deal simultaneous buying and selling of same currency for same amount but for
different maturities/value dates
An arbitrage deal combination of a money market deal and a swap to derive the benefit of
differential in the exchange rates [due to premium or discount] and the interest rates between two
currencies