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I. Company Background
A company has its headquarters outside China with subsidiaries around the world. The company wishes to retrieve standardized account information, process payment instructions automatically and improve the timeliness of information transmission. However, currently the company does not have its own SWIFT BEI code. Hence, the company is looking for an international bank to work with to monitor and manage the accounts around the world via SWIFT network, and transfer funds in home and foreign currency.
II. Company Requirement
The company wishes to send SWIFT MT101 instruction via administrating partner bank to co-administrating partner bank in China (ICBC). Administrating partner bank completes the external payment or fund transfer for specific account according to the instruction. The company wishes to receive via administrating partner bank the account details (MT940/941/942) sent by co-administrating partner bank in China (ICBC) in order to know the account changes in a timely fashion.
III. Solution Design
Overall Thought
Company headquarters, company's subsidiaries, administrating partner bank and co-administrating partner bank (ICBC) work together to set up a treasury management platform for the company. Co-administrating partner bank provides local cash management services in China.
System Connection
Administrating partner bank and co-administrating partner bank (ICBC) sign partnership agreement and agree on the terms and conditions. Subsidiaries of the company open RMB settlement accounts or FX accounts in local co-administrating partner bank (ICBC) and issue authorization letter. The company entrusts administrating partner bank to send instructions to co-administrating partner bank (ICBC) via SWIFT. Payment instructions (in home and foreign currency) and report on account details are sent via MT101, MT940, MT941 or MT942 messages.
SWIFT FIN Instruction
The company chooses its own administrating partner bank. Administrating partner bank uses SWIFT FIN to send MT101 payment instruction to co-administrating partner bank (ICBC). Co-administrating partner bank (ICBC) automatically receives, sorts and processes the instruction. Depending on the requirement from the company on the account details feedback, co-administrating partner bank (ICBC) takes the initiative to send report on account details to the administrating partner bank.
IV. Result of Implementation
Achieve standardization of account details, automatic processing of payment instructions and information transmission in a highly efficient and timely manner. Control the company cash around the world and effectively improve the use of funds.
Note: Information herein is for reference only. Refer to the announcements and regulations of local outlets for further details. ICBC reserves the final right of interpretation.
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