BOX Gpi Universal Confirmations - INTERCOPE

INFO SHEETBOX gpi Universal ConfirmationsSolution for SWIFT gpi Universal ConfirmationsRevision 1

INFO SHEET: BOX gpi Universal ConfirmationsTable of Contents1INTRODUCTION . 32GPI TRACKER, OBSERVER AND DIRECTORY . 4The Tracker . 4The Observer . 4The Directory . 43GPI UNIVERSAL CONFIRMATIONS . 54BOX SUPPORTING GPI TRACKER UPDATES . 64.1MT 199 CONFIRMATIONS. 64.1.1Automated Straight-Through Processing (STP) . 64.1.2Manual creation . 64.1.3Batch Confirmations . 74.1.4Automated straight-through processing (STP) . 74.1.5Manual Creation. 74.2NEW ISO 20022 TRACKER MESSAGES . 74.3TRACKER UPDATE INFORMATION IN BOX JOURNALS . 74.4ERROR AND ALERT HANDLING. 75DISCLAIMER . 82

INFO SHEET: BOX gpi Universal Confirmations1 IntroductionWith the introduction of ‘SWIFT globalpayments innovation’ (gpi) in 2016, a newstandard for global payments and theoptimisation of cross-border payments hasbeen created.Key improvements for payments of financialinstitutions and corporates havingimplemented gpi are increase of speed transparency of fees exchange rates and maturities end-to-end tracking of cross-borderpaymentsTo achieve these improvements, gpicustomers must agree to adhere to theservice-specific business rules and technicalrequirements captured in the ‘SWIFT gpiRulebook for Mandatory and Optional Servicesfor Banks, Market Infrastructure andCorporates’.These rules include gpi Customer Credit Transfergpi Covergpi Stop and Recallgpi Financial Institutions Transfergpi Instant Paymentsgpi for Corporatesgpi Case ResolutionPayment confirmation tracking and traceability,a service originally only available to gpi banks,is now open to all SWIFT participants. In 2018,adding the Unique End- to-End TransactionReference (UETR) to all payments by SWIFT,was the first step to an end-to-end paymentconfirmation tracking and traceability. As afurther step Universal Payment Confirmations(UC) are rolled out and become mandatory byNovember 2020.3

INFO SHEET: BOX gpi Universal Confirmations2 gpi Tracker, Observer and DirectorySWIFT gpi central features are a Tracker, an Observer, and a Directory.The TrackerThe Tracker enables end-to-end paymenttracking. Its database gives an end-to-endvisibility on the status of a payment transactionfrom when it is sent to its confirmation ofreception.SWIFT gpi banks can log in to the Tracker tocheck the status of the payments sent, inprogress, and received. Due to the tracking,liquidity management is improved, andpayments can be followed when they are inprogress.Stop and Recall immediately halts paymentsnot yet credited and recalls payments alreadycredited.The Tracker database can be updated by FINmessage or via API. It can be accessedthrough a GUI or by API calls to allow theservice to be embedded in other back officesystems.The ObserverSWIFT published a new Service LevelAgreement (SLA) Rulebook for gpi.A central service, the Observer, monitors thenew SLA for all members, providing all gpibanks with a global view on gpi banks’adherence to the SLA Rulebook for gpi.The DirectoryEvery gpi participating bank is listed in theDirectory. The respective entries, sorted byBIC, consists of information about which bankcan send and receive gpi payments and inwhich currencies, and which channels areused with what cut-off times. Entries alsoinform about whether a bank acts as anintermediary for gpi payments.Additionally, since 2019 the GUI ‘BasicTracker’ allows non-gpi banks to manuallyconfirm and track payments.4

INFO SHEET: BOX gpi Universal Confirmations3 gpi Universal ConfirmationsBy the end of 2020, all SWIFT financial institutions are obliged to send a confirmation for everycustomer payment (MT 103 on FIN), where funds are credited to the end beneficiary account.Universal Confirmations only apply to message types MT 103, MT 103 STP, and MT 103 REMIT. It ismandatory for the beneficiary bank to update the final payment status in the Tracker, which results ineither a credit confirmation or an indication of payment rejection.For all MT 103 payments received, updates of the payment’s status must be sent to the Tracker.Mandatory confirmations are: Accept - when funds reached thebeneficiary accountReject - when payment could not beprocessedMandatory confirmations must provide astatus, originator BIC, amount, currency, anddate/time of credit to the beneficiary account orrejected payment.Recommended (interim) confirmations of apending payment or transferred paymentoutside FIN are: Transferred - when the receiver of theMT 103 is an intermediaryPending - when the receiver of the MT103 is unable to send a finalconfirmation within the requiredtimeframeGenerally, it is recommended to provide aconfirmation at the time and with the date of apayment’s reception, or, at the latest, within 2business days after the payment’s value date(or future value date).Confirmations are available to previous agentsof the payment’s chain. All FIN users 1receiving MT 103 will be measured by thetimely provision of confirmations. Theperformance will become visible to allcounterparties.The confirmation can either be providedmanually for gpi banks using the full ‘gpiTracker’ or for non-gpi banks using the ‘BasicTracker’. Automated confirmations are generated byusing an API callsending an MT199 on FINbatch confirmations (csv files) from Nov2020 onsending one of the new ISO 20022 trackermessages beginning Nov 2021All SWIFT financial institutions are then able totrace their payments on the Basic Tracker (freeaccess).1 FIN users in user category SupervisedFinancial Institutions (SUPE) or PaymentsSystem Participants (PSPA).5

INFO SHEET: BOX gpi Universal Confirmations4 BOX supporting gpi Tracker UpdatesIn BOX, tracker updates for gpi Universal Confirmations are managed by either sending MT 199confirmation messages via the STP workflow or by manual MT 199 creation (manual operation).In the BOX GUI, batches including the specified confirmation message data (SWIFT defined csvformats only) are imported either automatically or manually. Figure 1 gives a broad overview of theMT 199 flow within BOX.Figure 1BOX Tracker Update Support:MT 199 Flow4.1 MT 199 ConfirmationsIn BOX, MT 199 confirmation messages caneither be processed automatically or createdmanually. Either way, MT 199 confirmationmessages will be validated by BOX.4.1.1 Automated Straight-ThroughProcessing (STP)MT 199 Confirmation Messages, issued frombackend applications or market infrastructuresand received by BOX, are marked as gpiconfirmation messages upon reception, androuted to a dedicated gpi UniversalConfirmations workflow.Whilst passing through the workflow, therelated MT 103 is searched and itsconfirmation status updated, the MT 199 isvalidated and enriched with additional data,before it is sent out to the SWIFT Tracker.Should a validation error occur, the respectiveMT 199 is then routed to an error queue formanual correction.4.1.2 Manual creationIt is possible to create a MT 199 confirmationmessage by selecting the respective templatein BOX’s MessageEntry mask.BOX journals can also be used to generate anMT 199 confirmation message for differentstatus updates after selecting an MT 103.6

INFO SHEET: BOX gpi Universal Confirmations4.1.3 Batch Confirmationslive in November 2021. These messages are:If backend applications export confirmationmessage data in the SWIFT defined csv batchformat (basic and advanced csv), BOX offerstwo ways of importing these files. Please note, gpi banks must use the‘advanced csv’ format, whereas non-gpibanks can use both formats.4.1.4 Automated straight-throughprocessing (STP)BOX offers an automated import of csv filescontaining the necessary confirmationmessage data.The BOX creation process of the MT 199confirmation messages checks after the csvimport, if all expected data is available or canbe searched from the related MT 103 dataalready received by BOX.If UETR information is missing, it is added fromthe related MT 103.The confirmation update status of the MT 103is also updated, which is visible in the BOXjournals.The MT 199 messages are routed via a specialconfirmation workflow to the Tracker, and incase of an error to an error queue and afterrepair to the Tracker.4.1.5 Manual CreationWithin the BOX GUI it is possible to manuallyupload csv files. After uploading theconfirmation data an MT 199 will be created,routed via the confirmation message workflow,and sent out to the Tracker.4.2 New ISO 20022 TrackerMessagesTracker Payment Status Update (trck.001)Tracker Alert Notification (trck.003)4.3 Tracker UpdateInformation in BOX JournalsThe comprehensive BOX journals based onthe BOX FIN Warehouse are expanded toprovide an overview of the current Trackerupdate status of received payment messages(MT 103).The SWIFT defined Status Code together witha Reason Code of the latest related MT 199confirmation message will be displayed in themessage journals.It is also possible to display all Tracker updatemessages and their data, which are sent andare received for a payment message, whichhas been received.In the future Payment Warehouse, thesefunctionalities will also be implemented.4.4 Error and Alert HandlingSWIFT does not provide a dedicated networkvalidation for the confirmation MT199, althougha correct handling of these messages ismandatory. To support BOX customers,Intercope has implemented an error and alertprocedure for gpi confirmations in BOX.BOX validation detects invalid MT 199messages, and the implemented workflowdispatches the erroneous messages to adedicated Error and Repair Queue for furthermanual processing.Tracker alert messages received from SWIFTare made available in an Error Queue,displaying all expected information and, ifpossible, including a reference to the relatedMT 199.BOX supports Universal Confirmations usingthe new SWIFT defined ISO 20022 trackermessages as soon as they become available.They will be implemented in BOX for the go-7