Citi s Capability for SWIFT MT798

Transcription

1 Citi s Capability for SWIFT MT798 Frequently Asked Questions Transaction Treasury and Services Trade Solutions

2 2 Treasury and Trade Solutions What is the MT798? SWIFT s Trade for Corporates, the MT798, offers corporates the use of established interbank industry standards in Trade Finance through structured messages between corporates and banks. MT798, also referred to as The Trade Envelope, is an authenticated message used to exchange Trade data between corporates and member banks of the SWIFT system. MT798 provides a multibank gateway through a centralized and secure channel for customers working with two or more banks. What is MT798 FileAct? SWIFT FileAct is a message protocol that allows the secure and reliable transfer of files and is typically used to exchange batches of structured financial messages and large reports. In Trade, Citi utilizes the FileAct protocol to exchange document files with our clients. Some examples include the presentation of country-specific regulatory documents for the issuance of an Import LC, or presentation of documents under an LC under a direct presentation scenario. What types of Trade data can be exchanged using MT798? The MT798 message allows for the exchange of: Import Letters Export Letters Guarantees/Standby Letters Related sub-messages (Existing category 7 messages) Trade for Corporates in theory... SWIFT flows FIN MT798 SWIFT flows FIN MT7xx SWIFT flows FileAct SWIFTNet SWIFTNet SWIFTNet Importer 1. Importer sends Application for a Letter of Credit (MT798) to its bank either via FIN or FileAct. Importer s bank(s) MT700 Exporter s bank(s) 3. Exporter s bank s application forwards the MT700 inside an MT798 to the Exporter as an Advice of Letter. 4 5 Exporter 2. Importer s bank s application extracts the appropriate fields from the MT798, putting them into an Issue of Letter of Credit (MT700) and sends them to the Exporter s bank. 4. Exporter sends documents via FileAct to its bank (e.g., prechecking). 5. Exporter s bank can utilize FileAct to send documents to the exporter. Documents (via FileAct)

3 3 Treasury and Trade Solutions What are the benefits to corporates of using SWIFT MT798? Corporates can enjoy the benefits of their access to SWIFT to manage all of their Trade Finance transactions with multiple banks on one platform. Corporates will improve working capital through a centralized multibank view of their trade transactions worldwide using one of the SWIFT Ready partner applications. For some corporates who can leverage their SWIFT connectivity implemented for cash transactions, they will also save time and money as they move away from proprietary tools and manual processes. Allows for a single channel, centralization and standardization while working with multiple banks. Ensures secure and reliable connectivity between banks and corporates. MT798 solution is Technology independent (SWIFT Standard) and Channel independent (corporates can use Internet, SWIFT or both). Corporates can use their existing setups with banks for exchanging MT798 messages. Corporates can enjoy this service without an additional fee to the bank. SWIFT MT798 Connectivity solutions for customers Front-Office Trade Application Flexible Connectivity Options Corporate Banking Relations Corporate s Own In-house Development Corporate s Own SWIFT Interface Citi MT798 Citibank Citi s Internal Trade System Corporate ERP System Vendor Ready Trade Portal Vendor Ready SWIFTNet Service Bureau Receive From Bank A MT798 Bank A Bank A Internal Trade System Send To Bank B MT798 Bank B Corporate Manual Access to Vendor Ready Portal Third-Party Service Bureau Bank B Internal Trade System

4 4 Treasury and Trade Solutions Is MT798 the same as Bolero? Although SWIFT MT798 and Bolero both offer a Trade Multibank solution, they have different offerings and are not the same. Below is a side-by-side comparison of SWIFT MT798 and Bolero, which helps to illustrate the ways in which the two functionalities differ. SWIFT MT798 The new SWIFT Message Type 798 is an envelope in which most of the standard trade 700 messages can be enclosed. For example, a 700-message issuance of a Documentary LC can be enclosed in an MT798. These messages utilize the SWIFT communication flow used today by banks for Trade, Cash and Securities. SWIFT is a bank-owned platform and bank usage fees are based on number of messages. Corporates would typically need a third-party vendor application and SWIFT access to initiate and receive the MT798 messages. SWIFT is primarily a bank-to-bank communications tool. Cash messages have included the Corporate/Bank flows. Trade message flows with Corporates is a newer offering. Corporates who currently have SWIFT cash flows with a bank may be interested in expanding to Trade. Corporates who use more than five banks for their Trade flows and have sizeable transaction flows might be good candidates. Most banks across the globe are SWIFT enabled. Some banks are MT798 capable today, while others have stated that they plan to be ready in the next nine to 18 months. Corporate clients are also implementing or considering the MT798. Citi has been MT798 enabled since We would like this to be the preferred multibanking solution. Bolero Bolero is an independent vendor with a hosted solution. Product offerings are Import/Export Letters and Guarantees/Standby Letters. Bolero markets to Corporate clients. Banks pay fees to access and communicate with these clients. Both Corporates and Banks need to access the Bolerohosted web-based portal to communicate. Participants must adhere to the Bolero Rulebook, which defines the Rules of Engagement. Bolero originally began as a SWIFT initiative. Bolero is used only for Trade flows. Corporates who use more than five banks for their Trade flows and have sizeable transaction flows might be good candidates. Some banks are accessing Bolero today. Citi has engaged with Bolero as well as other third-party vendors to support the needs of our clients.

5 5 Treasury and Trade Solutions How do corporates get access to MT798? Corporates typically need to implement MT798 capabilities either through in-house development or a vendor product to send and receive the MT798 messages. Moreover, corporates must be connected to SWIFT network since MT798 is a standard SWIFT message. Implementation Model The current implementation model for the corporate client assumes that either a client in-house solution or a third- party vendor will facilitate the capability. While various vendors may be able to facilitate MT798 for corporates, the following vendors provide Corporates with products or platforms and are currently certified by SWIFT. 1. Global Trade Corporation Global Jacob Katsman, CEO 2727 Steeles Ave. West, 4th Floor Toronto, ON, Canada, M3J 3G9 Tel: +1 (416) Mobile: +1 (416) katsman@globaltradecorp.com Website: 2. Misys Solutions for Banking Americas Bryan Watson 1180 Avenue of the Americas, 5th Floor New York, NY 10036, USA Tel: +1 (212) Mobile: +1 (646) bryan.watson@misys.com APAC Parag Ekbote parag.ekbote@misys.com Europe Andrew Coles andrew.coles@misys.com MEA Carlos Teixeira carlos.teixeira@misys.com What MT798 messages can corporates send to bank? (Corporate-to-Bank) (C2B) Import Transaction Flow: Application for issuance of Documentary Credit (MT798/770/700/701) Request for amendment of Documentary Credit (MT798/772/707) Response to Advice of Discrepancy (MT798/749) (C2B) Export Transaction Flow: Advice of Acceptance/Refusal of Amendment (MT798/735) Request for Transfer of a Documentary Credit (MT798/722) (C2B) Common Group Transaction Flow: Free Format Message (MT798/788/799) (C2B) Guarantee/Standby Letter Transaction Flow: Application for issuance of Guarantee/Standby Letter (MT798/761 or 784 & MT798/760) Request for amendment of Guarantee/Standby Letter (MT798/763 or 786 & MT798/767) Response to extend or pay Guarantee/Standby Letter (MT798/778) Claim for payment under Guarantee/Standby Letter (MT798/712) Request for Guarantee/Standby Letter Reduction/Release (MT798/783) For other SWIFT MT798 Vendors, please refer to SWIFT s website here.

6 6 Treasury and Trade Solutions What MT798 messages can corporates expect to receive from banks? (Bank-to-Corporate) (B2C) Import Transaction Flow: Notification of issuance of Documentary Credit (MT798/771/700/701) Notification of amendment of Documentary Credit (MT798/773/707) Notification of Acceptance/Refusal of Amendment (MT798/736) Advice of Discrepancy (MT798/748/750) Notification of Advice of Payment/Acceptance/Negotiation (MT798/753/754) Notification of Advice of Discharge (MT798/731/732) Notification of Advice of Refusal (MT798/733/734) Notification of Advice of Reimbursement or Payment (MT798/755/756) Settlement of Import Documentary Credit (MT798/757) (B2C) Export Transaction Flow: Advice of Documentary Credit (MT798/774/700/701) Advice of Amendment of Documentary Credit (MT798/776/707) Advice of Third Bank Documentary Credit (MT798/780/710/711) Response to Documentary Credit presentation (MT798/737) Notification of authorization to Pay, Accept or Negotiate (MT798/751/752) Notification of Advice of Payment/Acceptance/Negotiation (MT798/753/754) Notification of Advice of Discharge (MT798/731/732) Notification of Advice of Refusal (MT798/733/734) Notification of Advice of Reimbursement or Payment (MT798/755/756) Advice of Transfer Documentary Credit (MT798/782) Settlement of Export Documentary Credit (MT798/758) (B2C) Guarantee/Standby Letter Transaction Flow: Notification of Guarantee/Standby Letter (MT798/762 or 785 & MT798/760) Notification of amendment of Guarantee/Standby Letter (MT798/764 or 786 & MT798/767) Advice of issued Guarantee/Standby Letter (MT798/745 or 746 & MT798/760) Advice of amended Guarantee/Standby Letter (MT798/743 or 744 & MT798/767) Query to extend or pay Guarantee/Standby Letter (MT798/777) Acknowledgment of claim for payment under Guarantee/ Standby Letter (MT798/714) Notification of claim for payment of Guarantee/Standby Letter (MT798/779) Settlement of Guarantee/Standby Letter claim for payment and/or charges (MT798/781) Advice of Guarantee/Standby Letter Reduction or Release (MT798/766/769) (B2C) Common Group Transaction Flow: Free Format Message (MT798/789/799)

7 7 Treasury and Trade Solutions What are the next steps once a 3rd-party vendor is selected? 1. Complete and Sign Citi Onboarding Forms 2. Citi, the client and the 3rd-party vendor to conduct a Bilateral RMA SWIFT Key Exchange test to ensure connectivity 3. Citi and the client will participate in a Production Verification Test (PVT) to ensure the flow between the client and Citi is functional 4. Go Live For more details, please contact your Citi Trade representative. Treasury and Trade Solutions citi.com/treasuryandtradesolutions 2015 Citibank, N.A. All rights reserved. Citi and Arc Design is a registered service mark of Citigroup Inc GTS /15