SWIFT has announced it will launch a collaborative initiative that supports FATF Recommendation 16 requirements for wire transfers.
The Payments Data Quality service is an advanced reporting and data analytics service to help financial institutions comply with new international requirements for originator and beneficiary information in payments messages.
FATF Recommendation 16 was issued in 2012 and since then, regulatory focus on originator and beneficiary information has intensified, according to SWIFT. It states: “A number of jurisdictions have or will enshrine FATF Recommendation 16 in law, thus mandating the inclusion of originator and beneficiary information in payments messages. In the European Union, for instance, the Funds Transfer Regulation (FTR) adopted in 2015 will mandate such information in 2017. Singapore recently implemented FATF Recommendation 16 within MAS Notice 626, and other jurisdictions are expected to follow suit.”
Originator and beneficiary information is often missing or incomplete in a significant number of payments messages, according to industry analysis. The Payments Data Quality service will check messages using quality verification rules developed by SWIFT in line with industry practice and in cooperation with its community. The service will offer financial institutions:
- a global overview of quality of originator and beneficiary information in their payments messages
- detailed analytics to help them identify potential risk related to specific countries, counterparties and branches
- trusted reporting from SWIFT as a neutral third party to support their internal investigations and discussions with their counterparties
- a web-based platform eliminating the need to install, integrate or maintain additional systems
David Howes, deputy head of financial crime compliance at Standard Chartered Bank, said: “There is a growing need for improved payments data quality, particularly as it relates to financial crime compliance. We welcome the collaborative effort SWIFT is putting in place to enable the development and use of industry practice and standards to enhance data quality, transparency and compliance.”
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