1. Correspondent Banking Suite
October 2017

2. 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

3. 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

4. Correspondent Banking journey
Customer due diligence onboarding
Connect with your banks
Process payment
Technical validation
Transaction screening and ongoing due diligence
Strategic review
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5. Customer due diligence onboarding
Correspondent Banking Suite -- October 2017 5

6. 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

7. 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

8. Connect with your banks
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9. 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

10. 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

11. Process Payment
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12. 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

13. Transaction screening and on-going due diligence
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14. 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
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15. 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

16. 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

17. Strategic review
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18. 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

19. 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

20. 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
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21. Correspondent Banking Suite – October 2017