The document discusses changes to the ISO9362 standard for Bank Identifier Codes (BICs) with the 2014 revision. It outlines the new implementation timeline and transition period running from 2013 to 2018. It also describes new data attributes being collected, such as connectivity status, and changes to the registration process with third-party validation and data maintenance responsibilities. Finally, it discusses how the Legal Entity Identifier (LEI) format and the Global LEI System can be used for counterparty identification.

1. ISO9362 – BIC Implementation
& LEI
Judit Baracs, Senior Account Director, Country Manager RO
30 Oct 2014
RO Business Forum - Chatroom

2. BIC 2014 standard revision
• ISO 9362:2014
– Final version approved
– Implementation transition period
– Publication
• Standard
– BIC data record
– Data attributes
• Registration procedures
– Enhanced validation
– Third-party registration
– Data maintenance responsibility
ISO9362 - Implementation 2

3. 2009 – 2014 edition
ISO9362 - Implementation 3
ISO 9362:2009
ISO 9362:2014
Institution code = identify an institution (group) worldwide
Country code = ISO 3166-1
Location code:
- position 7 = time zone indicator
- position 8 = network indicator. 1 = not connected to SWIFT
Branch code
BIC format 4an 2a 2an [3an]
Business party prefix
Country code = ISO 3166-1
Business party suffix
Branch code
an = alphanumeric
a = alphabetic
[ ] = optional
Business party identifier

4. Implementation timeline
ISO9362 - Implementation 4
Dec 2013 Jan 2015 Nov 2018
Standard approved
• New processes
• BIC Data Record data attributes
• Start of transition period
End of transition period
RA
Users

5. Areas not impacted
• Existing BIC
• BIC structure
• Alpha-numeric BIC
• Country code
• Test & Training BIC
ISO9362 - Implementation 5

6. New connectivity attribute
Connectivity status Attribute BIC example
No SWIFTNet and No SWIFTNet FIN 001 ABCDBEB1
SWIFTNet but No SWIFTNet FIN 002 ABCDBEB1
SWIFTNet and SWIFTNet FIN 003 ABCDBEBB
…..
ISO9362 - Implementation 6

7. New non-connected BIC (BIC1)
BIC Branch Date Name
Connectivity
Status
WXYZUS31 XXX 01/09/2008 MyBank Inc. 001
ABCDBEB1 XXX 01/02/2015 Alpha Bank s.a. 001
ISO9362 - Implementation 7

8. Existing non-connected BIC: change of
connectivity status
BIC Branch Date Name
Modification
Status
ABCDBEB1 XXX 01/09/2012 Alpha Bank s.a. Added
ABCDBEB1 XXX 01/03/2014 Alpha Bank s.a. Deleted
ABCDBEBB XXX 01/03/2014 Alpha Bank s.a. Added
ISO9362 - Implementation 8
BIC Branch Date Name
Modification
status
Connectivity
Status
ABCDBEB1 XXX 01/09/2012 Alpha Bank s.a. Added 001
ABCDBEBB XXX 01/03/2015 Alpha Bank s.a. Added 003
ABCDBEB1 XXX 01/04/2015 Alpha Bank s.a. Deleted 001

9. Existing connected BIC: change of connectivity
status
BIC Branch Date Name
Modification
status
ABCDBEBB XXX 01/09/2012 Alpha Bank s.a. Added
ABCDBEBB XXX 01/03/2014 Alpha Bank s.a. Deleted
ABCDBEB1 XXX 01/03/2014 Alpha Bank s.a. Added
ISO9362 - Implementation 9
BIC Branch Date Name
Modification
status
Connectivity
status
ABCDBEBB XXX 01/09/2012 Alpha Bank s.a. Added 003
ABCDBEB1 XXX 01/03/2015 Alpha Bank s.a. Added 001
ABCDBEBB XXX 01/04/2015 Alpha Bank s.a. Deleted 003

10. New BIC request
ISO9362 - Implementation 10
Application
FIN
Y/N?
New BIC =
ABCDBEB1
New BIC =
ABCDBEBB
Y
N
During
Transition
Data
valid
N
Y
Connectivity status = 003 Connectivity status = 001

11. New BIC request
ISO9362 - Implementation 11
Application
Y
Data
valid
N
New BIC =
ABCDBEBB
FIN
Y/N?
Y
NY
Connectivity status = 003 Connectivity status = 001
After
Transition

12. LEI – GMEI Utility

13. LEI Format
LEI = 18!an 2!n
Example
HB7FFAZI0OMZ8PP8OE26
LEI update - October 2014 13
Code
Check Mod 97

14. European Banking Authority
LEI update - October 2014 14
http://www.eba.europa.eu/risk-analysis-and-data
• Capital Requirements Directive – CRD IV
• Supervisory Reporting
• Implementing Technical Standards (ITS)
• Scope
– European financial institutions
– Counterparties
• Recommendation = use of LEI
• Timeline
– Mar 2014
– Dec 2014

15. 15
LEI update - October 2014

16. 16
Market participant registers
Implementing a standard – LEI example
Creating a coherent picture of clients
Provider makes data set public = LEI with core data
Market participant introduces data set in data systems
LEI data set is used to identify counterparties
Provider assigns LEI “key”
LEI update - October 2014

17. Reference data
LEI update - October 2014 17
InstrumentsCounterparty Market data Transactions Reporting

18. Useful links
LEI update - October 2014 18
www.swift.com/lei
swiftref.swift.com/bic-lei-directory
www.gmeiutility.org
www.leiroc.org