Correspondent Banking Suite October 2017

Correspondent Banking Challenges “The correspondent banking network is crucial to facilitate the flow of funds around the globe, but the existing model is under pressure from rising regulatory, compliance and operational costs – a scenario that is forcing banks to decide whether they are really committed to the business of cross-border payments. ”* Pressure to reduce operational costs High focus on security Preventing financial crime Comply with Sanctions restriction Lack of information on payment lifecycle More competitive environment *GTNews – Correspondent banking to be or not to be – 6 January 2017 Correspondent Banking Suite – October 2017

Correspondent Banking Suite Combines SWIFT Cloud-based interface, managed and operated by SWIFT , Alliance Lite2 with SWIFT’s best-in-class products and services for correspondent banking from Financial Crime Compliance, Reference Data and Business Intelligence portfolio. Security and availability Issue and track payments Correspondents that you know Defences against cyber attacks and financial crime Comply with Sanctions restriction Correspondent network insights Worldwide accurate reference data Correspondent Banking Suite – October 2017

Correspondent Banking journey Customer due diligence onboarding Connect with your banks Process payment Technical validation Transaction screening and ongoing due diligence Strategic review Correspondent Banking Suite – October 2017 4

Customer due diligence onboarding Correspondent Banking Suite -- October 2017 5

The KYC Registry A single source to share & collect your KYC data for Correspondent Banking Standardized baseline Extensive information including legal entity data, ownership, client and product segments, detailed AML questionnaire, tax/FATCA/CRS information Up-to-date information Time-stamped data. Any changes are communicated in real-time to correspondents Data verification by SWIFT All data verified by SWIFT compliance professionals Cooperative business model Unlimited number of users, volume-based pricing and guaranteed maximum spend 4,200 banks registered 60% coverage in terms of SWIFT-connected banks 75% coverage in terms of SWIFT transactions volume Secure, user-control access User Approved sharing of KYC data Correspondent Banking Suite – October 2017

Bankers World Online a single source for worldwide and accurate reference data Financial Institutions We collect data from official and authorised sources only SSIs IBAN & SEPA data Clearing and Settlement Mechanisms SEPA. IBAN data & reachability CHIPS Regular check & feedback EBA E1 /S1 Payments UK Central Banks Banking Associations Global national Sort codes Bank listings ISO Registry BIC and IBAN BICs LEIs IBAN format Standing Settlement Instructions SSI extract from MT671 Communities Global LEIs Operational feedback Financial data Credit ratings Holidays LEI LOUs Reuters D&B Moody's EIU Correspondent Banking Suite – October 2017

Connect with your banks Correspondent Banking Suite – October 2017 8

Alliance Lite2 Alliance Lite2 Financial industry SWIFT Cloud-based connectivity enables financial institutions and corporates to exchange financial transactions with 10,800+ institutions worldwide while benefitting from the same security attributes as other SWIFT core services Your trusted link to the financial industry Correspondent Banking Suite – October 2017

Back-office Applications Lite2 - Direct Link Provides interactive connection between back-office and Alliance Lite2 through “fileless” flow Makes it easier to comply with Customer Security programme Offers ad-hoc integration and transformations capabilities Back-office Applications Alliance Lite 2 MQ, JDBC, WebServices FIN, InterAct, FileAct Correspondent Banking Suite – October 2017

Process Payment Correspondent Banking Suite – October 2017 11

Messaging technologies Core transaction banks Enhancing customer experience by delivering a new standard in cross-border payments SWIFTgpi “Yesterday” | Traditional correspondent banking Slow, can take multiple days No transparency on costs No transparency on time No confirmation of credit Accessible by any corporate Faster, same day* use of funds Transparency of fees End-to-end payments tracking Remittance information transferred unaltered “Today” | SWIFT global payments innovation (gpi) Accessible by any bank Reaching any bank Messaging technologies Core transaction banks SLA rulebook Observer Tracker Directory (*) within the timezone of the receiving gpi member Value-added product suite Correspondent Banking Suite – October 2017

Transaction screening and on-going due diligence Correspondent Banking Suite – October 2017 13

745 Sanctions Screening Key facts: Hosted and managed Screening engine Daily updates from over 43 lists users 2018 and beyond Real-time screening of transactions Extend coverage Private tuning rules Analytics Quality assurance & Audit reports Correspondent Banking Suite – October 2017 14

Name Screening service Name Screening gives you a hosted, flexible filter suite, expert list management and ongoing quality assurance, all with the simplicity of using a search engine. In partnership with: Simplicity | Effectiveness | Security

Daily Validation Reports | A secure way to monitor your LITE 2 transaction activity and understand your payment risks “With cyber security and fraud prevention as top institutional priorities, Daily Validation Reports have quickly become an important part of our daily reconciliation process and controls.” A European Central Bank Validate Activity Validate aggregated daily activity and transactions (reference and value) for a Group or a BIC8 across the payment chain Daily volume and value totals, maximum value of single transactions and comparisons to 24 months historical profile Assess Risks Assess large or unusual message flows based on different risk factors (largest transactions, largest aggregates, or deviation with average activity). Identifies new combinations of parties in payment chain highlights transactions sent outside of business hours Review Behaviours Ensure alignment to Compliance policy Correspondent Banking Suite – October 2017

Strategic review Correspondent Banking Suite – October 2017 17

Network Management Dashboard Insights to help you monitor and improve your business and efficiency across your correspondent banking network Data can be analysed through various angles: Your top correspondents in terms of volume and value Regional or country focus through interactive map Top message types and currencies being used Evolution of your network Correspondent Banking Suite - October 2017 18

Correspondent Banking journey Customer due diligence onboarding Connect with your banks Process payment Technical validation Transaction monitoring and ongoing due diligence Strategic review KYC Banker World Online RMA/RMA+ Lite2 migration services Lite2 monthly subscription Lite2 Peace of Mind Lite2 – Direct Link subscription SWIFT gpi Sanctions screening – Copy version Name screening (sanctions lists, ownership research, PEP) Daily validation report – single customer BI – Network Management Dashboard

Options commercialisation Issue payments to/from correspondents that you know Lite2 - migration services, monthly subscription and Peace of Mind Lite2 – Direct Link subscription* KYC registry, including on-boarding and consumption SWIFTSmart Basic pack Strengthen your defences against cyber threats and financial crimes Sanctions screening – Copy version Name screening (Sanctions lists, ownership research, PEP) Daily validation report – single customer Implementation services Compliance pack + + Your correspondent banking traffic and payments reference data Bankers World Online BI - Network management Dashboard Business data pack + + Options commercialisation * excluding Integration Services Note: SWIFT GPI will be included in the Correspondent Banking Suite in 2018 Correspondent Banking Suite – October 2017 20

Correspondent Banking Suite – October 2017