OBTFPM- Guarantee Issuance - Oracle

User ManualOBTFPM- Guarantee IssuanceRelease 14.1.0.0.0Part Id:E97615-01

Oracle Banking Trade Finance Process Management User GuideOracle Financial Services Software LimitedOracle ParkOff Western Express HighwayGoregaon (East)Mumbai, Maharashtra 400 063IndiaWorldwide Inquiries:Phone: 91 22 6718 3000Fax: 91 22 6718 3001www.oracle.com/financialservices/Copyright , 2018, Oracle and/or its affiliates. All rights reserved.Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respectiveowners.U.S. GOVERNMENT END USERS: Oracle programs, including any operating system, integrated software, any programs installedon the hardware, and/or documentation, delivered to U.S. Government end users are “commercial computer software” pursuant tothe applicable Federal Acquisition Regulation and agency-specific supplemental regulations. As such, use, duplication, disclosure,modification, and adaptation of the programs, including any operating system, integrated software, any programs installed on thehardware, and/or documentation, shall be subject to license terms and license restrictions applicable to the programs. No otherrights are granted to the U.S. Government.This software or hardware is developed for general use in a variety of information management applications. It is not developed orintended for use in any inherently dangerous applications, including applications that may create a risk of personal injury. If you usethis software or hardware in dangerous applications, then you shall be responsible to take all appropriate failsafe, backup,redundancy, and other measures to ensure its safe use. Oracle Corporation and its affiliates disclaim any liability for any damagescaused by use of this software or hardware in dangerous applications.This software and related documentation are provided under a license agreement containing restrictions on use and disclosure andare protected by intellectual property laws. Except as expressly permitted in your license agreement or allowed by law, you maynot use, copy, reproduce, translate, broadcast, modify, license, transmit, distribute, exhibit, perform, publish or display any part, inany form, or by any means. Reverse engineering, disassembly, or decompilation of this software, unless required by law forinteroperability, is prohibited.The information contained herein is subject to change without notice and is not warranted to be error-free. If you find any errors,please report them to us in writing.This software or hardware and documentation may provide access to or information on content, products and services from thirdparties. Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respectto third-party content, products, and services. Oracle Corporation and its affiliates will not be responsible for any loss, costs, ordamages incurred due to your access to or use of third-party content, products, or servicespg. 1

Table of Contents1.1Overview of OBTFPM . 31.1.1Benefits . 31.1.2Key Features . 31.2Guarantee Issuance . 31.3Registration . 41.3.11.4Main . 4Scrutiny . 71.4.1Main . 71.4.2Scrutiny- Additional Details . 121.4.3Scrutiny - Summary . 181.5Data Enrichment. 191.5.1Main . 191.5.2Application Details . 191.5.3GI Details . 191.5.4Guarantee Details . 231.5.5Preview Message . 251.5.6Additional Details . 261.5.7Summary . 291.6Guarantee Issuance – Approval. 311.7Guarantee Issuance – Acknowledgement . 321.8Guarantee Issuance – Acknowledgement . 341.9Guarantee Issuance – Rejection Letter . 351.10Reference and Feedback . 36pg. 2

Welcome to Oracle Banking Trade Finance ProcessManagement- Guarantee IssuanceWelcome to the Oracle Banking Trade Finance Process Management (OBTFPM) User Manual. This manualprovides an overview on the OBTFPM application and takes you through the various steps involved increating and processing trade finance transactions.This document will guide you on how to create and handle trade finance transaction in OBTFPM. Thisdocument is intended for helping you to conveniently create and process trade finance transactions inOBTFPM1.1 Overview of OBTFPMOBTFPM is a trade finance middle office platform which enables your bank to streamline the trade financeoperations.With OBTFPM, customers can send request for new trade finance transaction either by visiting the branch(Non Online channels) or through SWIFT/Trade Portals/ other external systems (Online Channels).OBTFPM has customer specific templates that enable fast and easy processing of Trade transactions thatreoccur periodically.1.1.1 BenefitsOBTFPM application provides service for the customers and financial institutions. This service helps thecorporate clients to manage and control multiple Trade Finance Transactions across the Globe in differentcurrencies. OBTFPM allows you to: Handleall Trade Finance transactions in a single Platform Provides Amountaudit trail from the creation to closure of the transactionblock support for customer account Createacknowledgement to Customers Enableuploading of related documents Integratedwith back end applications for tracking limits, creating limit earmarks and amountblocks, checking KYC, AML and Sanction checks status Create,track and close exceptions for the above checks.1.1.2 Key Features Stand-alone Requires Fastervery little change to bank’s existing core systemstime to market Capability Highlysystem agnostic to backend applicationto interface with corporate ERP and SWIFT to Corporateconfigurable based on corporate specific needs Flexibilityin modifying processes1.2 Guarantee IssuanceGuarantee Issuance is a Trade Finance transaction where the Applicant approaches a bank and requests thebank to issue a Bank guarantee on their behalf to the beneficiary.Following steps are carried out in OBTFPM during issuance of a guarantee. Receive Inputand Verify Application and other Documents (Non Online Channel)- Registration StageApplication Detailspg. 3

Upload Verifyof related Mandatory and Non Mandatory documentsDocuments and Capture Details (Online/Non Online Channels)- Scrutiny Stage Input/Modify ConductDetails of the Guarantee - Data Enrichment StageLegal checks Checkfor Limit Approval Checkfor Amount Block Checkfor Sanctions & KYC Earmark Capture DraftLimits/Collaterals/Amount BlockRemarksGuarantee Copy for Legal Verification Generate NotifyAcknowledgement and Draft Guarantee copy to customercustomer on any negative statuses during any of the stages Handoffto Back OfficeGuarantee issuance Process Flow1.3 Registration1.3.1MainAs a registration user, you will be able to register a Guarantee Issuance request. You will also be able toupload relevant documents and verify checklist items.InitiateFrom landing page, either from the ‘Create New’ or from the left menu bar, you will be able to create a newGuarantee Issuance.On selecting, Guarantee Issuance, a new page will open to capture the details.As a registration user, you will be providing the basic application details.Application DetailsReceived from Applicant Bank: Guarantee Issuance will be received from the applicant or the applicant’sbank. If the request for Guarantee issuance has been received from the applicant’s bank this field has to bechecked.Received from- Customer Id: You can select the customer id of customer from whom the issuance requesthas been received (applicant’s bank or applicant) as the case may be. System will not display customer ID if1. Customer KYC status is not valid or2. If customer is dead or3. If customer account is frozen.Customer Name: This field will default the name of the customer whose customer id has been chosen in theReceived from – Customer Id field.Branch: System will default the customer’s home branch. You can edit the defaulted branch to anotherbranch.Currency Code:1. You can type the currency code. On entering the first character, the currencies matching the letter will befiltered.2. You can also select from the drop-down.Amount: You can input the Guarantee value with decimal places (as per currency type). You can typeabbreviations like 1T to display 1,000.00, 1M to display as 1,000,000.00.pg. 4

Priority: Priority will default based on priority maintenance and you will be allowed to change. The values areHigh, Medium and Low.Submission Mode: For transactions created via registration, the submission mode will default as ‘Desk’. youcan change the defaulted mode to another mode. Allowed values are Desk, Fax, Email and Courier.Process Reference Number: Unique sequence number for the transaction. Auto generated by the systembased on process name and branch code.Application Date: System will default the branch’s current date. You can change the date to a back date butnot to a future date.Customer Reference Number: You can input the customer reference.Guarantee DetailsYou will be able to optionally fill the details in the Guarantee Details data segment.Product Code: The product code LOV will have all the product codes applicable for Guarantee Issuance.You can select appropriate product code.Product Description: The product description for the product code selected will be displayed.Guarantee Type: You can choose from one of the following drop down values.1. Performance Guarantee2. Tender/Bid Bond Guarantee3. Advance Payment Guarantee4. Financial guarantee5. Retention Money Guarantee6. OTHERS (you will be able to input narration).Advising Bank: You can search through LOV. Party type with banks will only be displayed in LOV.The system will display thea)SWIFT code(if available) ,b)name and address of the bankOn selection of the record if swift code is available, then swift code will be defaulted, if swift code is notavailable then the bank's name and address to be defaulted. The SWIFT key will be maintained with swift keyvalidation field as 'Y'. If the swift key maintenance value is 'N' then the bank name needs to populated. (Ifadvising bank is not selected, then the guarantee has to be sent directly to the beneficiary).Purpose of Message: The purpose of message has two options in the pick list1. Issue2.RequestDuring Guarantee Issuance, you have the option to choose Issue or RequestWhen Issuing a guarantee based on a counter guarantee, if the incoming MT760 has ‘Request’ in the field23, only those transactions will be handled through this flowValidity: you will be able to choose from the below drop down values1. Limited2.UnlimitedIf Validity 'Limited', then expiry date is mandatoryIf Validity 'Unlimited', then expiry date is not mandatoryBank Guarantee Number: System defaults the contract reference number based on the product codeselectedDate of Issue: System will default the branch’s current date. You cannot change this value. System willpopulate this field with branch date if date of approval is later than date of registration.Date of Expiry: Cannot be earlier than Issue Date. If expiry date is equal to issue date, override message willbe displayed. This field will have value if the value for Validity period is ‘Limited’.Applicable Rules: System will default URDG and will allow you to change. The values are:1. URDG - Uniform rules for demand guarantees2. None - Not subject to any rulespg. 5