1. SWIFT Latin American Regional Conference (LARC) - 2014
Latin America Regional Conference
29 May 2014
Stacy Rosenthal, Head of Supplementary Products, SWIFT
The Road to 2015
2. The Road to 2015 (SWIFT2015 Strategy)
18 Initiatives in 4 Key Areas
Deepening the Core Expanding the Core
Enabling Interoperability and TCO Reduction
Interface
Hosting
Services
High-End
Interfaces
Low-End
Connectivity
Go Local
Enabling Transformation
BrandPlatform Innovation People CSR
Reference
Data
Sanctions Matching
Custody &
Asset
Servicing
RTGS Corporates
Correspondent
Banking
Clearing &
Settlement
2SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
3. The Road to 2015 (SWIFT2015 Strategy)
Context
• Evolving context since
SWIFT2015 took
shape
–Increased regulation
–Sanctions, KYC, AML
–Cyber crime
–Asian expansion
3SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
5. 5
The Compliance Roadmap
FATF 16 Information quality
Compliance Analytics
Sanctions list
Mngt service
Sanctions KYC AML
Processing
services
Traffic analysis
Standards
Data repositories KYC registry
AML testing & tuning
Sanctions Screening
Sanctions Testing & tuning
(transaction & client systems)
Traffic restriction (RMA)
Live
Development
Qualification
Exploration
Quality
Assurance
Client/Name screening
SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
7. SWIFT for Corporates
Payments
Cash Management
Foreign Exchange
Multi Asset Class Matching
Trade Finance
Supply Chain Finance
Regulatory Requirements
eStatements
eBAM
Reference Data
Global Industry Standards
Implementation Guidelines
Fast Onboarding
Personal PKI Certificates
User Entitlements
Traceability
Single Sign-on
Payment Assurance
Faster Payments
Pre-shipment Finance
Post-shipment Finance
A/R Reconciliation
SWIFT’s Training & Consulting Services
Trouble-free
payments and SEPA
compliance
Identity and mandate
management
Certainty and
efficiency in the
supply chain
Secure financial
connectivity
7
8. Corporate Adoption – Executive summary – 2013
New corporate groups in 2013 173 (20% vs. 2012)
20%
10%
70%
Americas
Asia Pacific
EMEA
Traffic (FIN 31% FileAct 41% Q4 2013 vs. Q4 2012)
Bank adoption
908 banking groups
offering corporate connectivity
46 banking groups certified
573 banks (BIC8)
117 countries
Corporate Group adoption (BIC8)
3SKey: 36 banking groups
BPO: 55 banking groups 31%
FORTUNE Global 500
On SWIFT
1200+ Corporate
groups connected
8
11. 11
Identity & Mandate Management
Challenges - Multiple portals, several tokens
SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
12. 12
Identity & Mandate Management
3SKey for Single Sign-on
Web e-Banking
Cloud applications
Cash &Treasury portals
Sensitive applications
…
Corporate user
SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
14. 14
MyStandards
All standards-related information you need in a unique and simple platform
Base Standards: MT/MX/ISO 20022
Global market practices
Local market practices
Bilateral guidelines
Internal specifications
SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
16. MyStandards Overview
• MyStandards has two main
parts
1. MyStandards web platform
• Manage and publish your client facing usage guidelines
• Base standards content and comparison
• Other publishers usage guidelines
2. MyStandards editor
• The editor is used off-line to define
usage guidelines
• The usage guidelines are then
uploaded into the MyStandards
web platform
16
17. MyStandards Readiness
Portal Overview
3. MyStandards Readiness Portal
builds upon, and is accessed
from MyStandards
– Internal testing
– Client self-service testing
– Clients test against
Citi specific usage guidelines
– Reduces support &
hand-holding when bringing
on new clients
17
20. Your needs..
• increasing regulation pressure and
demand
• SEPA, FSA, LEI, …
Compliance
• Quality data from guaranteed source
• Data is complete, linked and up-to-dateRisk
• Straight-through-processing, repair
costs
• Data collection – multiple data sets =
limited integration = high cost
Cost
SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014 20
22. A single source of Reference data
Accurate, affordable & accessible
All-in
Combining worldwide bank identification details,
IBAN/SEPA data
Up-to-date
Daily/Monthly updates, no manual maintenance
needed
Easy
One single file-import
ERP integration (e.g. SAPTM directories)
Flexible
Data can be imported in SEPA-mode or non-
SEPA mode, One country or multiple at the time
T2
EPC
ISO
Bankers
accuity
SSI
Nat IDs -
local ACHs
SWIFT
Licensed
banks
MT670
EBA MT094s
The BIC registration authority
22SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
30. Global LEI System
•International financial market regulators
•Upholds governance principles and oversees
that global LEI system functions for public
interest
•Plenary and Executive Committee
• Oversees functioning of the COU, operational
integrity and implementation, maintenance of
standards specified by the ROC
• Appointed and overseen by ROC, composed
of stakeholders from financial & non-financial
firms
• Ensure application of uniform operational
standards and protocols to maintain uniqueness
of LEI and high data quality
• Manage federation through LOUs
• Maintain central logical database
• Provision of LEI functions
• Service providers, local business registries,
numbering agencies
Local
Operating
Unit (LOU)
Local
Operating
Unit (LOU)
Local
Operating
Unit (LOU)
Central
Operating
Unit (COU)
Board of
Directors
Regulatory
Oversight
Committee
Governance
Operations
30SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
31. CFTC
Regulatory requirements (Part 45)
• Reporting firms must identify themselves and counterparties
with certified CICIs
• Reporting firms must keep records of transactions
• Reporting firms must report transactions to registered swap
data repositories
• Effective since April 2013
• Major Swap Participants / Swap Dealers
http://www.cftc.gov/PressRoom/PressReleases/pr6563-13
31SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
32. ESMA
EMIR - Requirements
• Central role for ESMA
– With Local / National supervision
– Moving OTC Derivatives to centralised clearing (CCPs)
– Standardisation of OTC Derivatives contracts
– Increased market transparency via reporting to Trade Data
Repositories
• Reporting obligations start February 2014
http://www.esma.europa.eu/page/European-Market-Infrastructure-Regulation-EMIR
32SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
33. DTCC/SWIFT Utility
• International Financial Industry
(GFMA) selected DTCC/SWIFT
bid
• CFTC selected DTCC/SWIFT
solution for CICI
• Launch of CICI Utility at
www.ciciutility.org
• ROC Global Endorsement of
CICI Utility
• Re-branding of CICI Utility to
GMEI Utility at
www.gmeiutility.org
• Transition into Global LEI System
8 July 2011
24 July 2012
21 August 2012
3 October 2013
24 January 2014
33SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
34. Utility Statistics (a/o 1 February)
• Statistics
– Total records 109,545
• Regional split
– US 61,566 56.2%
– EU 29,531 27.0%
– Total countries 154
• All endorsed LOUs
– Total records 160,433
– Total countries 164
– GMEI Utility 68.2%
34SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014
38. Multi Asset Class Matching
CounterpartyCorporate
Streamlining and automating processes for tailored risk management,
regulatory compliance and efficiency
Accord / Affirmations
Deal (offline)
Matched
Confirmations
Matching
(Accord / Affirmations)
Confirmations (MT 3XX)
38
1 FX Spot or NDF or
Money Market trade
2 Exchange of Confirmations 3 Matching of confirmations
Accord Matching
Real Time reporting
and exception handling
SWIFT Latin American Regional Conference (LARC) - 2014 28-29 May 2014