SWIFT for Corporates · KYC & Identity Onboarding & Formats +2,100 corporates on the network +370 are French, 1st market WW KYC for Corporates Payments, Cash Management & Trade SWIFTgpi

SWIFT for Corporates - Do not share without SWIFT's prior consent 2

SWIFT presentation


excellence

community innovation

+200countries

What’s SWIFT?

core values

3

a cooperative serving the

financial industry since

1973

integration &

interfaces

messaging

shared

services

pillars built with

and for the

community

3

+12kcustomers connected

worldwide

~3kemployees worldwide


Where’s SWIFT?

offices

27Accra

Beijing

Brussels

Dubai

Frankfurt

Hong Kong

Johannesburg

Kuala Lumpur

London

Madrid

Mexico City

MiamiMilan

Moscow

MumbaiNairobi

New York Paris

São Paulo

Seoul

Shanghai

Singapore

Stockholm

Sydney

Tokyo

ViennaZurich


BANKS

FUND MANAGERS

Who’s using SWIFT?

MARKET

INFRASTRUCTURES

CLEARING & SETTLEMENT

SYSTEMS

CORPORATES

BROKERS / DEALERS

CENTRAL BANKS

GLOBAL

CUSTODIANS

CSDS

STOCK EXCHANGES

DEPOSITORIES

TRADE REPOSITORIES


SWIFT & corporates


SWIFT and Corporates – A love story !

KYC & IdentityOnboarding &

Formats

+2,100corporates on the

network

+370are French, 1st market

WW

KYC for

Corporates

Payments, Cash

Management &

Trade

SWIFTgpi for

Corporates

Financial

Crime &

Compliance

SWIFTgpi

SWIFTgpi


SWIFTgpi & SWIFTgpi for

Corporates initiatives


1 Faster paymentsSame day use of funds*

TraceableEnd-to-end payment tracking

& payment confirmation2

3Transparent feesDeducts and FX 4

Full remittance dataUnaltered reconciliation info

Your company

Beneficiary

gpi

Intermediary

bank

Beneficiary’s bank

Your bank

*Within the time zone of the receiving gpi member

$

Invoice

a1700db1-90b2-4948-83d8-6309c5c34a3d

How gpi works?

RulebookSWIFTgpi

>¥

3900+ Committed banks

840+ Live banks

65+% of SWIFT

cross- border payments sent as gpi

1900+ country corridors

300,000,000,000 USDsent daily via gpi

gpi adoption


11

SWIFT gpi is very fast!

SWIFT for Corporates - Do not share without SWIFT's prior consent

38%8%

4%

5%

6%

8%

5%

9%

11%

7%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Within 5 minutes

Between 5 and 15 minutes

Between 15 and 30 minutes

Between 30 minutes and 1 hour

Between 1 and 2 hours





More than 1 day

94% within 24h

Cash Management 12

SWIFT GPIDEFINING NEW STANDARD FOR INTERNATIONAL PAYMENTS

BNP Paribas strongly believes in this initiative and has amongst the largest SWIFT gpi footprints with 10 locations

LIVE and more to follow in 2020. Indeed, we believe the adhesion is global and it is critical for banks to join this

initiative to guarantee best-in-class processing of International Payments.

10+ more locations

Cash Management 13

SWIFT GPIDEFINING NEW STANDARD FOR INTERNATIONAL PAYMENTS

SWIFT gpi is finally addressing some key

pain points of cross-border payments to

deliver concrete improvements to

treasurers :

✓ SPEED with same day credit

✓ TRACEABILITY sharing status and confirming credit

✓ TRANSPARENCY on fees, banks, timing and status

The International Payments processing relies on chain of banks

working together. The multiplication of partners multiply the change of

single point of failure. This is being addressed with SWIFT gpi.

Having more than 10+ million cross-border payments per annum

in 130+ currencies and offering a global reach with one of the most

inclusive global Cash Management footprints with presence in 55

countries, it is a mandatory requirement to size such opportunities to

improve service quality for corporates.

Today, all cross-border transactions sent through the LIVE

branches will be respecting the SWIFT gpi SLA, regardless the

channel or currency used.

BNP Paribas made it a priority and invested heavily in parallel in the

renewal of their International Payment infrastructure.

14SWIFT for Corporates - Do not share without SWIFT's prior consent

gpi experience for Corporates

Generation of tracking reference by corporate X

Multi-bank payment initiation & tracking X

Self service tracking in e-banking X

Tracking through support desk =

Speed, transparency, unaltered remittance =

Generation of tracking reference by corporate X

Multi-bank payment initiation & tracking X

Self service tracking in e-banking =



Generation of tracking reference by corporate =

Multi-bank payment initiation & tracking =

Self service tracking in e-banking =



Improve your experience with

international payments through banks

support teams1

Self service web access to the tracker2

Fully integrated tracking trough ERP &

TMS systems3

Cash Management 15

Different channels to get the information on your BNPP gpi outgoing payments →

SWIFT GPIEASY FOR YOU TO ACCESS THE INFORMATION

via BNP ParibasCustomer Support

Via BNP Paribase-banking platform

Via your owner ERP/ TMS (g4C)

You

✓ Send your payment file with your ownUETR

✓ Receive gpi tracker status real-time (MT199/ pain002)

✓ Bank acgnosticLiaise via BNPP with your vendor for more

details of accessible functionalities

Cash Management 16

SWIFT GPIBNP PARIBAS USE CASES FOR CORPORATES : THANKS TO FULL TRANSPARENCY INTO PAYMENT ROUTING, FEES AND

APPLIED FX OF THE SWIFT TRACKER:

INTEGRATE ALL THE TRACKER

INFORMATION IN YOUR ERP/ TMS

BNP Paribas shares to your ERP/TMS vendor

directly and real-time the SWIFT tracker status

messages related to your transactions to integrate directly in the system.

PUSH NOTIFICATIONS TO

YOUR BENEFICIARIES

As you initiate your BNP Paribas transactions, a link is

sent to your designated beneficiaries for them to track

& trace the payment, fostering trust and visibility

with your internal and external counterparties

BNPP SUPPORT IS BETTER EQUIPPED

Each BNP Paribas customer support is better equipped to

answer your questions and track & trace your payments with direct access to the SWIFT

tracker

TRACK & TRACE REAL-TIME & SELF-

SERVICE

Track & trace yourself your transactions real-time in your e-banking platform, either for data crunching, visibility or

investigation

BETTER MANAGEMENT OF

INCOMING

( under development)

BNP Paribas aims to enable you to track & trace incoming flows

with pro-active alerting and smoothen cash

forecasting


SWIFT gpi for Corporates Corporate

Receivables Payables

g4C service level agreement rulebook

Inbound TrackingPilot (started Sep 2019)

✓ Payment advice

✓ Tracking of incoming payments

✓ Real time credit confirmation (own account)

✓ Payment insights (time, routing, fees,…)

Pay and TraceLive

✓ gpi payment initiation

✓ Tracking of outgoing payments

✓ Real-time credit confirmation (at bene)

✓ Payment insights (time, routing, fees,…)

Open C2B APIPlanned (Q2 2020)

Standardised and interactive Corporate-to-bank API providing real-time

tracking for Pay and trace and Inbound tracking across SWIFT and

proprietary channels

gpi Payment + UETR

Tracking

Payment

advice


gpi principles applied to corporates – Pay & Trace

gpi payments tracker

MT 103 + UETR &

STI:001MT 103 + UETR &

STI:001

TMS/ERP

Ordering corpBeneficiary

Instructing gpi Agent

2

MT 101 + UETR, pain.001 + UETR(s)

1

4MT 199 + UETR & STI:003 / pain.002 + UETR(s) *

g4C confirmations

▪ Delivered to beneficiary bank as non-

gpi

▪ Delivered to beneficiary bank as gpi

▪ Beneficiary has been credited

▪ Transaction was rejected

▪ Payment has left gpi

Corporate generates and includes UETR in the payment

instruction (MT 101 – unitary payment / pain.001 – unitary and

bulk payments)

Bank creates MT103 including UETR generated by the

corporate

Tracker delivers B2C specific confirmations to Instructing bank

Instructing bank relays back to ordering corporate (MT 199* /

pain.002) as-it-happens

2

1

3

*Banks can send pain.002 instead of MT 199 (single transaction confirmation as-it-happens) in

mutual agreement with their corporate pairs. SWIFT will not support testing or perform format

validation in pain.002 in the scope of Early Adopters Phase

3

4


gpi principles applied to Corporates – Inbound tracking

gpi payments tracker

MT 103 + UETRMT 103 + UETR

TMS/ERP

Ordering corp

1

MT 199 / API STI:007

g4C confirmations

▪ Payment advice (ordering bank)

▪ Delivery confirmation (at bene bank)

▪ Credit confirmation (at bene account)

▪ Rejections

Payment is initiated in the SWIFT network (MT 103)

Tracker identify g4C beneficiary bank and extracts payment details

Tracker delivers payment advice details to beneficiary bank

Beneficiary bank relays back to beneficiary corporate as-it-

happens (FIN/ ISO)

g4C bene bank Beneficiary

FIN / ISO STI:007

1

2

3

4

23

4Payment

$

Cash Management 20

SWIFT GPIBNP PARIBAS PRIORITIES FOR 2020

INTEGRATE ALL THE TRACKER

INFORMATION IN YOUR ERP/ TMS

BNP Paribas shares to your ERP/TMS vendor

directly and real-time the SWIFT tracker status

messages related to your transactions to integrate directly in the system.

PUSH NOTIFICATIONS TO

YOUR BENEFICIARIES

As you initiate your BNP Paribas transactions, a link is

sent to your designated beneficiaries for them to track

& trace the payment, fostering trust and visibility

with your internal and external counterparties

BNPP SUPPORT IS BETTER EQUIPPED

Each BNP Paribas customer support is better equipped to

answer your questions and track & trace your payments with direct access to the SWIFT

tracker

TRACK & TRACE REAL-TIME & SELF-

SERVICE

Track & trace yourself your transactions real-time in your e-banking platform, either for data crunching, visibility or

investigation

BETTER MANAGEMENT OF

INCOMING

( under development)

BNP Paribas aims to enable you to track & trace incoming flows

with pro-active alerting and smoothen cash

forecasting

Enable service for

incoming

Enable service for

incoming

Enable service for

incomingCreate new services

Continuously expand our gpi country coverage


g4C participants

▪ 60+ participants – 60% already live

▪ 8 out of 10 Top Cash Management on

SWIFT

▪ 100+ BICs enabled


• Enable instant cross-border experience

• Remove transaction issues upfront

• Reduce exceptions & investigations

Value Proposition

• Increased speed of transfer of funds to the end beneficiary

• Provide best experience to end customers at payment initiation

• Detect and correct non-STP situations before initiating a payment

Service benefits

Beneficiary

Verification

Account and name

Format of accounts

Sanction screening

Fraud and mule accounts

• Beneficiary account exists

• Beneficiary data matches

Payment

Validation

International guide

Static checks

Resolution services

Fee

Prediction

Transaction cost calculator

Pre-Validation initiative

• Required transaction data are

included

• Transaction data are validated

• Transaction data are structured

Beyond g4c – Prevalidation initiative


KYC for Corporates

24


What problems are we facing?

58.2% of treasury professionals cite that time spent

on KYC requests is what is most challenging to them*

93%*93% of treasurers say that

responding to KYC requests is

more difficult now than it was 5

years ago

Some corporates have over 2000 bank

accounts and a highly complicated

corporate structure

81% of treasures are concerned about how well

their counterparties protect their KYC data*

53.3% of Corporates have reduced the

number of banks that they work with*

C:\>

!

*Reference: Eurofinance – Solving the KYC conundrum


KYC named as one of the top challenges

• Data collection is a repetitive process

• Lack of standardisation leads to

manual workflows

• Process carried out across multiple

channels adding to complexity

• Irregular review cycles & schedules

• Lack of transparency

• Increasingly strict regulatory

requirements

• High overall costs for all involved

parties

→ KYC is time-consuming, repetitive, cumbersome & costly


The KYC Registry for Corporates

User friendliness

Access to quality data

Secure, user-controlled access

Privacy

Co-operative business model

One central repository✓ Covering up to 80% of KYC

requirements

✓ Single, global standard

✓ Automatic refreshments and change

alerts to correspondents

✓ Proven use of navigation

✓ SWIFT validation of accuracy,

completeness, format and validity in time

✓ Full control over data and who can access it

✓ Audit trail

✓ Compliant with data protection regulations

✓ Non-profit cooperative of FIs

✓ Trusted 3rd party of 45+ years

✓ Developed with our community


Key Features

4 Categorieso Identification of the customer

o Ownership and management structure

o Type of business and client base

o Tax

277 Data Fieldso Mix of mandatory, optional and recommended

o 4 modules identified as extended baseline

25 Document Typeso 51% mandatory or recommended

o 49% optional

28

The KYC Registry for Corporates

KYC Registry

KYC Data &

Documents

validated by SWIFT

Corporate

Notification

2

Bank X

Counterparty

or Relationship

Management

approves

access

3 Data is unlocked

4CDD or EDDData Upload

Bank X

CONSUMERSCONTRIBUTOR

Access

Request

1

Notification5

1. Bank X requires access

and approaches the

Corporate via the KYC

Registry

2. The Corporate receives

notification that Bank X

requests access to their

KYC data

3. The Corporate approves

access of Bank X

4. Access to data is unlocked

on the KYC Registry

5. A notification is sent to

users at Bank X that KYC

data has been made

available by the Corporate.

The permission is valid

until pro-actively

revoked or surrendered.



BANK

S

CORPORATES

The KYC4C Working Group35 Members

16 Countries

3 Regions

100+ Relationships

All about Collaboration

Be part of SWIFT’s Engagement Group

30

Subscribe now to the KYC Engagement Group to:

• Stay up-to-date with recent developments

• Have direct access to our KYC experts structuring the

solution

• Share your feedback on the solution’s development

• Be part of the vital SWIFT KYC Community

Use the link to register and learn about Terms & Conditions:

https://www.swift.com/webform/kyc-pilot-engagement-group

The more input we receive from the community, the more

effectively the solution will suit KYC needs of corporates and their

banks. It is a mutual challenge; the community should address it

collectively.

Share the link with your counterparties within the community

(banks/corporates) to adopt the solution once available.


https://www.swift.com/webform/kyc-pilot-engagement-group

Example – Home page


Example – Identification


Example – Document upload


www.swift.com
