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SOFE 2013 SWIFTRef session

SOFE 2013 SWIFTRef session

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  • 1. SWIFTRef Update SWIFT Operations Forum - EMEA Karel Spiritus 27-29 November 2013 Amsterdam
  • 2. Agenda SWIFTRef (in 3 slides) Compliance (SEPA, LEI, MiFID) What’s new 2013? Focus 2014 (incl 3 POC views)
  • 3. SWIFTRef (in 3 slides)
  • 4. Managing 140 million pieces of data Board_SEP2012_NMG_Briefing_Material_V4 4
  • 5. Where is our reference data used ? • Payments and treasury transactions – Automated (integration capabilities !) and manual processing; – Investigations – Standing settlement instructions • Compliance and Regulatory Reporting – SEPA, MiFID, LEI, … • Correspondent due diligence / KYC – Cross-referencing of identifiers – Financial information – Hierarchies and ownership
  • 6. Data collection and distribution Data consumption by banks and corporates SOURCES Financial Institutions • SSI • SEPA • IBAN manual query tools (daily updates) Data updates via online tool internet • • IBAN format (ISO13616) BIC (ISO9362) Central banks & banking associations Direct updates as ISO registrar internet SWIFTRef utility SWIFTNet FileAct Bespoke updates (files, web, …) • National codes • EBA, T2 internet Reuters, D&B, Fitch Economist, … Bank financials & ratings, country economics File download or download automation (monthly or daily updates) Updates via FTP to SWIFTRef File delivery (monthly or daily updates) web services (daily updates) Local Operating Units LEI 6
  • 7. Compliance Challenges Quality SEPA, LEI, MiFID Products
  • 8. IBAN Only IBAN PLUS / SEPA PLUS ❶ Pre-SEPA ❷ SEPA ❸ IBAN Only IBAN + BIC IBAN Corporates bank code + account nb. Challenge: Generate the IBAN and BIC correctly! Challenge: Validate the IBAN, Generate the BIC correctly! Financial Institutions account nb. + bank code or BIC IBAN + BIC IBAN + BIC 8
  • 9. EU 260/2012 – Derive BIC from IBAN Timelines (1) Germany (EUR) France (EUR) …… (EUR) (2) (2) Intra-EURO countries EUR payments by Feb 2016 SEPA (3) UK (GBP) Denmark (DK) (1) Domestic EUR payments by Feb 2014 …… (…..) (3) Non-EURO to EURO country EUR payments by Oct 2016
  • 10. Quality – Finding the needles … Central Authorities Financial Institutions 1 2 Bank IDs, BIC data sources and special cases IBAN Plus 4 IBAN/BICs from payments (differences) Exclusion List IBAN data maintenance screens SWIFT data team 3 live payments feed-back - missing Bank IDs - incorrect BICs - bulk IBAN lists MT103+ SWIFT Network IBAN Plus Users
  • 11. IBAN/BICs from payments (15 Mio payments Sept) ( • 3.8% missing bank IDs to be added to IBAN Plus • 2% need to be investigated (BIC of different bank) CC AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD Bank ID 00010000 00010000 00010000 00010000 00010000 00010000 00020097 00020315 00020672 00030001 00030002 00030003 00030004 00030005 00030005 BIC COBADEFFXXX CRDAADADXXX CRESCHZZ80A DEUTDEFFXXX UBSWCHZH80A BACAADADXXX CRDAADADXXX CRDAADADXXX CRDAADADXXX CRDAADADXXX CRDAADADXXX CRDAADADXXX CRDAADADXXX DEUTDEFFXXX CRDAADADXXX TOT 1 1 1 3 8 1697 4 1 2 126 133 54 56 1 77 Top n/a n/a n/a n/a n/a Top Top Top Top Top Top Top Top n/a Top
  • 12. live payments feedback IBAN Plus users Invalid BIC in payments: More than 27% inconsistent BIC branch codes 67,000 live SEPA payments 5,6 % inconsistent BIC4s Invalid IBANs in payments - examples 218,000 IBANs 0.5 % invalid country code, length, character 1.3 % invalid IBANs 0.8 % invalid Bank ID* * As far as SWIFTRef could detect
  • 13. Sources of SEPA Routing file Reachable FIs Adherence And Reachability CSMs SEPA Routing Adherence EPC Reachability EBAS STET CECB DBSC SCTI …. • Overlap of data sources contributes to higher quality: inconsistent data is being investigated and fixed
  • 14. SEPA Routing file - Content SEPA ROUTING file REACHABLE BIC INSTITUTION NAME SCHEME ADHERENCE BIC CSM PREF P DEUTATWWXXX DEUTSCHE BANK AKTIENGESELLSCHAFT SCT DEUTDEFFXXX EBAS WUBUAT21XXX BAUSPARKASSE WUESTENROT AG SCT WUBUAT21XXX EBAS GENODEM1SCN VOLKSBANK SUEDKIRCHEN EG SDD B2B GENODEM1SCN DBSC GENODEM1SCN VOLKSBANK SUEDKIRCHEN EG SDD B2B GENODEM1SCN EBAS CRBZIT2B018 CASSA DI RISPARMIO DI BOLZANO S.P.A. SCT CRBZIT2BXXX SCTI CRBZIT2B018 CASSA DI RISPARMIO DI BOLZANO S.P.A. SCT CRBZIT2BXXX EBAS CRBZIT2B019 CASSA DI RISPARMIO DI BOLZANO S.P.A. SCT CRBZIT2BXXX SCTI CRBZIT2B019 CASSA DI RISPARMIO DI BOLZANO S.P.A. SCT CRBZIT2BXXX EBAS CRBZIT2B020 CASSA DI RISPARMIO DI BOLZANO S.P.A. SCT CRBZIT2BXXX SCTI CRBZIT2B020 CASSA DI RISPARMIO DI BOLZANO S.P.A. SCT CRBZIT2BXXX EBAS INTERMEDIARY BIC DEUTDEFFXXX BKAUATWWXXX P GENODEDDXXX MARKDEFFXXX P CIPBITMMXXX CIPBITMMXXX P CIPBITMMXXX CIPBITMMXXX P CIPBITMMXXX CIPBITMMXXX
  • 15. LEI challenge City National Bank … 190 cities 15 legal entities 42 clearing codes 2 BIC codes
  • 16. Regulatory Oversight Committee Board of Directors Governance Operations Central Operating Unit (COU)
  • 17. Derivatives CFTC Effective since April 2013 EMIR Implementation Feb 2014 30.000 BIC11 & 4.300 BIC8 matched
  • 18. LEI Ultimate parent: BIC11 LEGAL TYPE BIC ISO LEI CODE LEI ULTIMATE PARENT LOU LEI LEGAL NAME LEI CITTGB2LXXX L 31OGKFG0Y1795OV0AK56 6SHGI4ZSSLCXXQSBB395 SWIFT/DTCC Citibank International PLC London PUBLIC LIMITED UNITED KINGDOM COMPANY CITIBRBRXXX L 1P0UUG7LC1S92QTNHG39 6SHGI4ZSSLCXXQSBB395 SWIFT/DTCC Banco Citibank SA Sao Paulo BRAZIL SOCIEDADE ANONIMA CITICNSXXXX L IMRQEARW2X0ZMJAJ5J58 6SHGI4ZSSLCXXQSBB395 SWIFT/DTCC Citibank (China) Co Limited Shanghai CHINA COMPANY LIMITED CBSWCHZZXXX L 4BVL95XIH9NNZF0YN485 6SHGI4ZSSLCXXQSBB395 SWIFT/DTCC Citibank (Switzerland) AG Zurich SWITZERLAND AKTIENGESELLSCHAFT CITIES2XXXX L HHY6OGOQAUUT1FUCOL70 6SHGI4ZSSLCXXQSBB395 SWIFT/DTCC Citibank Espana SA Alcobendas SPAIN SOCIEDAD ANONIMA CITIIE2XXXX L N1FBEDJ5J41VKZLO2475 6SHGI4ZSSLCXXQSBB395 SWIFT/DTCC Citibank Europe PLC Dublin IRELAND PUBLIC LIMITED COMPANY CITIKRSXXXX L 745P3MMS7E8CUVXDRJ82 6SHGI4ZSSLCXXQSBB395 SWIFT/DTCC Citibank Korea Inc Jung-gu KOREA, REPUBLIC OF OTHER CITITRIXXXX L CWZ8NZDH5SKY12Q4US31 6SHGI4ZSSLCXXQSBB395 SWIFT/DTCC Citibank A.S. Istanbul TURKEY ANONIM SIRKET 6SHGI4ZSSLCXXQSBB395 SWIFT/DTCC Citigroup Inc. Wilmington UNITED STATES INCORPORATED CITY LEI COUNTRY LEI LEGAL FORM LEI
  • 19. Branch BIC (linked to another BIC) included: BIC11 LEGAL TYPE BIC ISO LEI CODE AARBDE5WXXX L AARBDE5W100 B AARBDE5W108 CITY BIC LOU LEI AAREAL BANK AG WIESBADEN SWIFT/DTCC Aareal Bank AG AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG BERLIN B AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG WIESBADEN AARBDE5W200 B AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG HAMBURG AARBDE5W250 B AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG HANNOVER AARBDE5W360 B AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG ESSEN AARBDE5W500 B AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG FRANKFURT AM MAIN AARBDE5W550 B AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG MAINZ AARBDE5W600 B AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG STUTTGART AARBDE5W700 B AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG MUENCHEN AARBDE5W860 B AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG LEIPZIG AARBDE5WDOM B AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG WIESBADEN AARBDE5WCLE AARBDE5WXXX EZKODONU5TYHW4PP1R34 AAREAL BANK AG WIESBADEN B MASTER BIC LEI MASTER BIC LEI ULTIMATE PARENT NAME BIC EZKODONU5TYHW4PP1R34 LEGAL NAME LEI LEGAL FORM LEI AKTIENGESELLSCHA FT
  • 20. BIC11 LEGAL TYPE BIC ISO LEI CODE SBUKGB21XXX L CITTGB2LXXX MASTER BIC LEI MASTER BIC COUNTRY CODE BIC LEI ULTIMATE PARENT NAME BIC GV2G1WXZ3SZ1PPSLTS96 6SHGI4ZSSLCXXQSBB395 CITIGROUP GLOBAL MARKETS U.K. EQUITY LIMITED GB L 31OGKFG0Y1795OV0AK56 6SHGI4ZSSLCXXQSBB395 SBILGB2LXXX L XKZZ2JZF41MRHTR1V493 6SHGI4ZSSLCXXQSBB395 CITTGB2LCMU B CITTGB2LXXX CITTGB2LELA B CITTGB2LPBG BDP RECORD KEY LEGAL NAME LEI BD0000001S8M Citigroup Global Markets U.K. Equity Limited CITIBANK INTERNATIONAL PLC CITIGROUP GLOBAL MARKETS LIMITED GB BD0000000M7I GB BD0000001REZ 31OGKFG0Y1795OV0AK56 CITIBANK INTERNATIONAL PLC GB BD0000000M7F CITTGB2LXXX 31OGKFG0Y1795OV0AK56 CITIBANK INTERNATIONAL PLC GB BD0000000M7G B CITTGB2LXXX 31OGKFG0Y1795OV0AK56 CITIBANK INTERNATIONAL PLC GB BD0000000M7H CITIGB2LIPP B CITTGB2LXXX 31OGKFG0Y1795OV0AK56 CITIBANK INTERNATIONAL PERSONAL BANK (PLC) LONDON GB BD000000DVKJ CITIGB2LJER B CITTGB2LXXX 31OGKFG0Y1795OV0AK56 CITIBANK INTERNATIONAL PERSONAL BANK JERSEY GB BD000000DVKK CITIGB2LLON B CITTGB2LXXX 31OGKFG0Y1795OV0AK56 GB BD000000DVKL SBILGB2LIPB B SBILGB2LXXX XKZZ2JZF41MRHTR1V493 GB BD0000001REX SBILGB2LIWA B SBILGB2LXXX XKZZ2JZF41MRHTR1V493 GB BD0000001REY SBILGB2LMLV B SBILGB2LXXX XKZZ2JZF41MRHTR1V493 CITIBANK INTERNATIONAL PERSONAL BANK LONDON CITIGROUP GLOBAL MARKETS LIMITED CITIGROUP GLOBAL MARKETS LIMITED CITIGROUP GLOBAL MARKETS LIMITED GB BD000000EX3P CITIGB22XXX B CITIUS33XXX E57ODZWZ7FF32TWEFA76 CITIBANK N.A (GTS) GB BD0000000M0V CITIGB2LXXX B CITIUS33XXX E57ODZWZ7FF32TWEFA76 CITIBANK N.A. GB BD0000000M19 CITIUS33XXX L CITIBANK N.A. US BD000000A2SU E57ODZWZ7FF32TWEFA76 6SHGI4ZSSLCXXQSBB395 Citibank International PLC Citigroup Global Markets Limited Citibank, National Association Citigroup Inc.
  • 21. MiFID BIC Archive Challenges − Address MiFID regulation in the UK (FSA reporting) and other countries SWIFTRef Product − BIC Archive available since October 2012 − Content: BIC HISTORY Current status and details of each BIC full name, address, (de)activation date, connection status BIC changes due to merger/acquisition. All newly added and deleted BICs with dates
  • 22. What’s new 2013?
  • 23. More sophistication introduced during 2013 What’s new 2013? SEPA data quality • Close cooperation with IBAN countries • Extraction from FIN traffic • Work closely with customers Data delivery options • Exclusion list • TXT or XML format • Account number to IBAN conversion • Download automation and FileAct • Daily updates for all files • Consulting services for business integration • Service directory in Bank Directory Plus • Bank Directory for SAP • Newsletter National Codes & SSI • Local Language file & New national codes • Increased focus on SSI collection in emerging countries
  • 24. Automated File Download The solution for mid-to-low banks and corporates • New: Get files through Internet via API calls 1. GetBankFile 3. SWIFTRef validates (eg subscription valid) 2. Make API call Database Internet / Network 5. Application pulls BIC directory SRD.COM 4. Web service returns validated response 24
  • 25. SWIFTRef over FileAct The solution for Alliance users Scheduled Monthly Distribution Optional Daily FileAct Store & Forward SnF Queue • Secure channel to receive SWIFTRef files directly into core banking systems • Popular with large banks • Increasingly being used by Corporates as well • Support daily and monthly distributions 25
  • 26. Web Service APIs The solution for Banks, Partners and Corporates Real Time Reduce TCO In-Sync • Live with new functionnal API calls SWIFTRef Decentralise • Innovation Enhancements for Q1 2014 Cloud 26
  • 27. Focus 2014
  • 28. 2014 Focus • Product delivery: – New release Bankers World Online – Webservices – SWIFTRef enquiry tool • Data quality focus: – Increase data-quality (addresses SSI, BIC to LEI matching …) – Perfect matching IBAN Plus – New national codes, frequency updates – Integrate SWIFTNet services data – FATCA data (Foreign Account Tax Compliance Act) – Data collection & investigation for customers – …. 28
  • 29. Proof Of Concept (POC): New Bankers World Online New data Reuters  Financials, credit ratings, shareholding… D&B  Credit ratings, financials.. Other Changes Smartstream  New holidays data related to Stock Exchanges Integrate new files    BICtoLEI Service directory Local Language file Usability review     Update your data Add SSI Hierarchy Searches within SSI or hierarchy Improve integration Economist data   Knowledge base Improve help function
  • 30. 30
  • 31. 31
  • 32. Legal entity data Institution/BIC details Payments data & Compliance
  • 33. 33
  • 34. 34
  • 35. 35
  • 36. Update your data Request investigation
  • 37. POC: I-pad 39
  • 38. POC: I-pad 40
  • 39. POC: New Enquiry tool
  • 40. Thank you 42