Bank Instruments

MT 103-202

PRESENTED BY
BLUHE FINANCIAL
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GUIDE OUTLINE
TOPIC HIGHLIGHTS

MT 103
MT 202
KYC Requirements
Pre-Audit
Post-Audit
Manual Download VS. Download
Tranches
Fees
Financial Statements
 SINGLE CUSTOMER
CREDIT TRANSFER

MT 103:
This message type is sent by or on behalf of the
financial institution of the ordering customer,
directly or through (a) correspondent(s), to the
financial institution of the beneficiary customer.

It is used to convey a funds transfer instruction in

which the ordering customer or the beneficiary
customer, or both, are non-financial institutions
from the perspective of the Sender.

This message may only be used for clean payment

instructions. It must not be used to advise the
remitting bank of a payment for a clean, for example,
cheque, collection, nor to provide the cover for a
transaction whose completion was advised
separately, for example, via an MT 400.

EXAMPLE:
Bank Austria sends the following message to ABN Amro Bank:

1.) A customer transfer to ABN Amro Bank, Amsterdam.

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 GENERAL FINANCIAL
MT 202:
INSTITUTION TRANSFER
This message is sent by or on behalf of the ordering
institution directly, or through correspondent(s), to
the financial institution of the beneficiary
institution. All parties identified in the message must
be financial institutions.

It is used to order the movement of funds to the

beneficiary institution.

This message may also be sent to a financial

institution servicing multiple accounts for the
Sender to transfer funds between these accounts. In
addition it can be sent to a financial institution to
debit an account of the Sender serviced by the
Receiver and to credit an account, owned by the
Sender at an institution specified in field 57a.

This message must not be used to order the movement

EXAMPLE: of funds related to an underlying customer credit
On 5 January, a CLS settlement member (BANKGB2L) transfer that was sent with the cover method. For
receives an instruction from CLS Bank to fund JPY these payments the MT 202 COV or MT 205 COV must be
5,000,000 by 07.00 AM CET to CLS Bank.
used.
BANKGB2L sends an MT 202 to their JPY nostro
correspondent (BANKJPJT), indicating that the funds
need to be credited to CLS Bank by 07.00 AM CET.

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 KYC REGISTRY
PASSING DUE DILIGENCE

KYC Registry will contain a pre-defined set of KYC-related documents and data
(Baseline). The detailed list of documents and data that are part of the Baseline are
set out in the KYC Registry Baseline Definition. Each Contributing customer will
contribute its own KYC-related documents and data into KYC Registry, or endorse
the information in case it is collected by SWIFT from other sources. Only a subset of
data from the Baseline constitutes personal data, in particular the following types
of personal data relating to the following categories of individuals. Note For the
purposes of this document, personal data means “any information relating to an
identified or identifiable natural person. An identifiable person is one who can be
identified, directly or indirectly.” Categories of individuals KYC Registry contains
personal data relating to the following categories of individuals: • Key
controllers of Contributing customers, such as members of the Board of directors,
Executive management, Supervisory Board, Shariah Board • Relevant staff members of
Contributing customers, such as Money Laundering Reporting Officers (MLRO), AML
contact persons, Compliance officers, Treasurers for Corporates, and contact
persons for FATCA and Common Reporting Standard (CRS) matters • Owners of
Contributing customers, such as shareholders and ultimate beneficial owners

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(UBOs) • Custodians of bearer shares • Settlors, trustees, and beneficiaries of
foundations and trusts • Protectors of trusts • Authorized signatories within the
Contributing customer
 THE TYPES OF PERSONAL DATA THAT KYC REGISTRY
CONTAINS INCLUDE, PER CATEGORY OF INDIVIDUALS:

Key Key Settlors, Trustees, Authorized

Controllers Members Owners Custodians Beneficiaries, and Protectors signatories
First Name X X X X X X
Middle Name X X X X X
Last Name X X X X X X
Gender X X
Date of Birth X X
Country of
Birth
X X
Country of
Residence
X X
Address of
Residence
X X
Nationality X X
Function X X X
Nature of
relationship X
with the entity

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 THE TYPES OF PERSONAL DATA THAT KYC REGISTRY
CONTAINS INCLUDE, PER CATEGORY OF INDIVIDUALS: CONT'

Key Staff Settlors, Trustees, Authorized

Controllers Members Owners Custodians Beneficiaries, and Protectors signatories
Biography X
Signature X
Proof of
identity X X
Proof of permanent
residence X X
Appointment
Date X
Membership of
Governance
Bodies
X
Contact
Details X
Type of Ownership X
Percentage of
Shareholding X
Passport/ID
numbers*
X X
Source of wealth X

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PRE AUDIT STEPS
The following will need to be completed by the
customer prior to moving forward.

1. FINALIZE 2. FINALIZE 3. PREPARE & FI LE

PRIVATE PROFIT SHARE KYC/PASSPORT
AGREEMENT AGREEMENT
Customer KYC and
Private agreements Profit Share passport are placed
are created agreements are with Due Diligence
between all parties finalized between to complete KYC
to fulfil the all parties. registry.
purpose of the file.
07 POST AUDIT STEPS
The following will need to be completed by the
customer once they are ready to transact.

Complete Draft Final Tranche(s)

KYC Receiver Receiver Are
Registry Contract is Contract Scheduled
& DD Issued is Signed & Executed
MANUAL NON
DOWNLOAD DOWNLOAD
A MANUAL DOWNLOAD IS NORMALLY MT103 NON-DOWNLOAD
PRESENTED IN THE FORM OF A MT103/202 TRANSACTION SHOULD TERMINATE
MANUAL DOWNLOAD IN SWIFT.
IN THE RECEIVERS SETTLEMENT
THIS TRANSACTION IS PLACED INTO SWIFT.COM ACCOUNT.
BY THE SENDER BUT IS NOT PLACED ON THE
RECEIVING BANKS LOCAL SWIFT, BUT RATHER IN THIS TRANSACTION IS PLACED INTO
THE GLOBAL SWIFT "CLOUD". SWIFT.COM BY THE SENDER AND IS
PLACED ON THE RECEIVING BANKS
THIS MEANS THE TRANSACFION MUST BE
SEARCHED BY THE RECEIVING BANK IN GLOBAL
LOCAL SWIFT
AND THEN DOWNLOADED WITH SEPERATE
CODES NOT PRESENT ON THE TRANSMISSION THIS TRANSACFION DOES NOT NEED
SLIP. TO BE SEARCHED BY THE RECEIVING
BANK IN GLOBAL OR BE
OTHER KINDS OF MANUAL DOWNLOAD
DOWNLOADED WITH SEPERATE
TRANSACTIONS ARE DTC AND IP/IP, AND SEMI
AND MANUAL GPI. CODES THAT ARE NOT PRESENT ON
THE TRANSMISSION SLIP.
IN GENERAL, STAY AWAY FROM MANUAL AS IT
NORMALLY INDICATES SOME FORM OF IN GENERAL, NON-DOWNLOAD FILES
RESTRICTED FUNDS THAT REQUIRE A RECEIVER ARE LESS RISKY AND CAN BE
TO "TO TAKE ACCOUNTABILITY" FOR THE
QUICKLY STRUCTURED.
FUNDS, VIA THEIR PULLING (DOWNLOADING) OF
THE FUNDS.

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COMPARED TO A NON-MANUAL DOWNLOAD
TRANSACTION SHOULD TERMINATE IN THE
RECEIVERS SETTLEMENT ACCOUNT.
EXAMPLE OF
$1,000,000

MULTIPLE
$750,000

TRANCHES $500,000

$250,000

$0
Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 5

Most large transactions require multiple tranches and reliable connections are
required. In this example, connection is established with an initial transfer of
$100,000.00 followed with $1,000,000.00 sequence. Most accounts can handle up to five
billion usd per tranche as long as the account is setup for it and the connection
between sending and receiving bank has been established.
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 ESTIMATED FEES MT103-202 EXAMPLE:

MANUAL DOWNLOAD

Up to 60%

*In this example the customer

would receive 40%.

NON-DOWNLOAD

Up to 20%

*In this example the

customer would receive 80%

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*Private and Secure connections only.

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