GSL on Rejections, Returns and Cancellations

IBOS ASSOCIATION LIMITED

GSL ON REJECTIONS, RETURNS AND CANCELLATIONS

TECHNICAL SPECIFICATION Version 11.4

GSL on Rejections and Cancellations v11.4

IBOS Association Limited Page 2 of 20 Version 11.4 – October 2012 GSL on Rejections and Cancellations v11.4

A publication of:

IBOS Association Limited Golden Cross House 8 Duncannon Street London WC2N 4JF England

Telephone: +44 20-7484-5000 Facsimile: +44 20-7484-5180

October 2012

The information contained in this publication is accurate to the best of IBOS's knowledge. However, IBOS disclaims any liability resulting from the use of this information and reserves the right to make changes without notice.

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Document History

Version/Revision Date Notes Version 4 Updated to include rejection codes for the MT103 message and comments from the 2001 GSL Meetings Version 5 Updated to include rules on MT101 message cancellations Version 6 Updates following discussions at the May GSL Meeting Version 7 Updates following the change in the tagging processes Version 8 June 2003 Updates following discussions at the May 2003 GSL meeting Version 9 July 2003 Updates following discussions at the July 2003GSL meeting Version 10 December 2003 Updates following removal of message type MT100 Version 11 March 2005 Updates by HVB, BST and SPimi following discussions at the February 2005 GSL Meeting Version 11.1 April 2005 additional comments from HVB and BST Version 11.2 July 2005 Updated following June review Version 11.3 December 2007 Update to exclude usage of Option F within Field 50a of MT101 and to reject the MT101 with error code AC05 Version 11.4 October 2012 Updated following October Review

Distribution List

This document has been distributed to the following people:

Version/Revision Name Company Version 11.0 GSL Representatives Version 11.1 GSL Representatives Version 11.2 Duarte Almeida BST Version 11.3 GSL Representatives All banks Version 11.4 GSL Representatives All Banks

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CONTENTS

SCOPE OF THE MESSAGES 7

SCOPE OF THE REJECTION & RETURN MESSAGES 7

SCOPE OF THE CANCELLATION MESSAGES 7

ASSUMPTIONS 8

ADDITIONAL GUIDELINES FOR THE USE OF THE SWIFT MESSAGES 8

Rejection of Payment Orders and Related Cover Payments 8

Cases C, D, F, (see associated rejection of MT103) 12

Message Rejection Error Codes for MT103 13

Rejection of Requests for Transfer messages 14

Message Rejection Error Codes for MT101 15

Rejection of Balance and Account Enquiry Messages 16

Message Rejection Error Codes for MT920 16

TIMEFRAMES FOR COMPLETION 17

CANCELLATION OF REQUEST FOR TRANSFERS 17

MT192 Request for Cancellation 18

MT196 Answers 18

APPENDIX A - REFERENCED DOCUMENTS 19

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SCOPE OF THE MESSAGES

SCOPE OF THE REJECTION & RETURN MESSAGES For reasons of simplicity, the same rules are always applied when sending rejection and return messages between IBOS banks. These rules do not vary depending on either the transmission route (i.e. via EBA or SWIFT) or on the currency of the underlying transaction.

The rejection or return message is sent using the same route as the original message (i.e. EBA or SWIFT).

The rejection or return message type should be in keeping with the original message type, as per SWIFT, although some IBOS bank manually repair using MT-99 series :

MT101 and MT920 are rejected using MT195 and MT995 respectively as they are not payment orders

MT103 are returned or rejected using MT103 (Receiver to the original Sender)

MT202COV are returned using MT202COV (Receiver to the original Sender)

Each rejection message will contain either an IBOS error code or, where appropriate, a SWIFT actual Reason Code, identifying the reason for rejection.

In the case of rejection of a message routed through the EBA late in the day (i.e. Cut off Time (COT) intervenes between receipt of the message and before the rejection can be dispatched), the rejection will be sent and funds returned next day via EBA.

Please note: the date of rejection could be either the date of submission or execution depending on the reason given. Please refer to the Rejection Response Timeframes i published on the website for further detail.

SCOPE OF THE CANCELLATION MESSAGES For reasons of simplicity, the same rules are always applied when sending cancellation messages between IBOS banks. These rules do not vary depending on either the transmission route or on the currency of the underlying transaction.

The cancellation message is sent using the same route as the original message.

The cancellation message type is in keeping with the original message type:

MT101s will be cancelled using the MT192, request for cancellation message. On receipt of the MT192, an MT196 answer message must be sent in response.

Cancellations will be handled on a best effort basis.

Please note that in the case of the original payment message being posted to the account in real-time, it may not be possible for the cancellation message to be processed. This reason code will be populated in the MT196 Answers SWIFT message.

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ASSUMPTIONS All specifications refer to the SWIFT User Handbook (Latest Version) ii. This document defines IBOS specific rules.

ADDITIONAL GUIDELINES FOR THE USE OF THE SWIFT MESSAGES

REJECTION OF PAYMENT ORDERS AND RELATED COVER PAYMENTS For specifications regarding rejection messages for MT103 and MT202COV refer to the SWIFT User Handbook (Latest Version)Error: Reference source not found, Usage Guidelines, 14 Payments Reject / Return Guidelines and

GSL on Customer Transfer / Single Customer Credit Transfer: Technical Specifications (Latest Version)iii - Appendix A - Cases A to G.

The Receiver defines returns and rejects as follows:

Reject when the transaction has not yet been booked (direct account relationship or pending receipt of cover)

Return when accounting has already taken place and the amount must be returned to the Original Sender (i.e. exchange of funds via EBA)

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The layout of the following fields/sub-fields must be complied with for MT202COV cover payment rejections in line with the original MT202COV received:

MT 202COV

Status Tag / Subfield Field Contents Contents/Options

M 20 Transaction reference number 16x O 21 Related reference TRN of original MT202COV O 13C Time Indication M 32A Value date, Currency Code, Amount 6n3a15number M 52A Ordering Institution O 53A Senders Correspondent O 54A Receiver's Correspondent O 56A Intermediary O 57A Account with Institution M 58A Beneficiary Institution M (for 72 Sender to Receiver Information / Narrative 6* 35x Alternatively, this field messages to may be identical to that of the IBOS Banks) related MT103 rejection Line 1 /BEN/Return cover MT103 (TRN of the original MT103) End of Sequence A General Information M 50A Ordering Customer 50A of original MT202COV O 52A Ordering Institution O 56A Intermediary Institution O 57A Account With Institution M 59A Beneficiary Customer 59A of original MT202COV O 70 Remittance Information O 72 Sender to Receiver Information O 32B Transaction Amount O 33B Currency/Instructed Amount End of Sequence B Underlying Customer Credit Transfer Details M = Mandatory, O = Optional

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MT103

The layout of the following fields/sub-fields must comply with SWIFT rules for MT103 payments return/reject messages:

Case A (between two EBA clearing banks)

MT 103

Tag Contents Status / Sub-field Field Contents /Options M 20 Transaction reference number 16x M 23B Bank Operation Code 4!c M 23E Instruction Code 4!c[/30x] M 32A Value date, Currency Code, Amount 6n3a15number O 33B Currency/Instructed Amount 3!a15d M 50K Ordering Customer 4*35x M 59 Beneficiary Customer [/34x]4*35x M 71A Details of Charges 3!a O 71F Sender’s Charges 3!a15d O 71G Receiver’s Charges 3!a15d M 72 Sender to Receiver Information / Narrative 6*35x M Line 1 /RETN/field tag 2n[1a] M Line 2 /2a2n/ SWIFT defined codes or bilaterally agreed GSL codes M Line 3 /MREF/ TRN of original MT103

NB. Contents of these fields will be the same as those received in the MT103 being returned.

 Case B – EURO between two non-clearers

 Case C – EURO from non-clearer to clearer

 Case D - EURO from clearer to non-clearer

 Case F - Non-EURO without direct account relationship, in a currency where an IBOS Common Settlement Bank (“ICSB”) exists

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 Case G - Non-EURO without direct account relationship, in a currency without an IBOS Common Settlement Bank

MT 103

Tag Status / Sub-field Field Contents Contents/Options M 20 Transaction reference number 16x M 23B Bank Operation Code 4!c M 23E Instruction Code 4!c[/30x] M 32A Value date, Currency Code, Amount 6n3a15number M 50K Ordering Customer 4*35x M 59 Beneficiary Customer [/34x]4*35x M 71A Details of Charges 3!a M 72 Sender to Receiver Information / Narrative 6*35x M Line 1 /REJT/field tag 2n[1a] M Line 2 /2a2n/ SWIFT defined codes or bilaterally agreed GSL codes M Line 3 /MREF/ TRN of original MT103

Please Note: Contents of these fields will be the same as those received in the MT103 being rejected.

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CASES C, D, F, (SEE ASSOCIATED REJECTION OF MT103) The layout of the following fields/sub-fields must be complied with for MT202COV cover payment rejections in line with the original MT202COV received:

MT 202COV

Tag Status / Subfield Field Contents Contents/Options M 20 Transaction reference number 16x O 21 Related reference TRN of original MT202COV O 13C M 32A Value date, Currency Code, Amount 6n3a15number M 52A Ordering Institution O 53A Senders Correspondent O 54A Receiver's Correspondent O 56A Intermediary O 57A Account with Institution M 58A Beneficiary Institution M (for 72 Sender to Receiver Information / Narrative 6*35x Alternatively, this field messages to may be identical to that of the IBOS Banks) related MT103 rejection Line 1 /BEN/Return cover MT103 (TRN of the original MT103) End of Sequence A General Information M 50A Ordering Customer O 52A Ordering Institution O 56A Intermediary Institution O 57A Account With Institution M 59A Beneficiary Customer O 70 Remittance Information O 72 Sender to Receiver Information O 32B Transaction Amount O 33B Currency/Instructed Amount End of Sequence B Underlying Customer Credit Transfer Details M = Mandatory, O = Optional

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MESSAGE REJECTION ERROR CODES FOR MT103 The following cases for rejection are defined in the document GSL on Single Customer Credit Transfer Technical Specifications. Either an IBOS error code (XC2n) or, where appropriate, a SWIFT actual Reason Code (2a2n), is used to identify the reason for rejection, together with the field tag concerned.

ERROR FIELD CODE TAG FIELD CONTENTS REASON FOR REJECTION AM02 32A Amount/currency/value date Specified transaction amount is greater than the Paying Bank’s own limits allow (local clearing payments). AM03 32A amount/currency/value date Specified amount is a non processed currency outside of existing (IBOS) agreement (includes legacy currencies which are prohibited) AM05 20 & Sender’s reference Possible message duplication 32A amount/currency/value date XC02 MUR Payment clearing system EBA clearing must be used for EUR payments when both Sender and Receiver are clearing participants XC03 53a Sender’s correspondent Use of option A or B is mandatory XC03 54A Receiver’s correspondent Use of option A is mandatory XC04 56a Intermediary Use of this field is prohibited XC05 57A Account with institution Options A or C(where bilaterally agreed) is mandatory information for local clearing payments (i.e. IBOS Receiving Bank is used to clear the payment through the local clearing systems) XC06 57A Account with institution Receiving Bank has advised that local clearing payments cannot be executed (bank specific) AC03 59 / 59A Beneficiary customer Format of the account number specified is not valid for local clearing (bank specific) AC04 59 / 59A Beneficiary customer Account specified is closed, prohibiting posting of transactions against it AC05 59 / 59A Beneficiary customer Account number, name or BIC specified is not valid at the Receiving Bank AC06 59 / 59A Beneficiary customer Account specified is blocked, prohibiting posting of transactions against it AC07 25A Charges account Charges account is invalid, closed or blocked (and the bank is compelled to react)charges account number is invalid, closed or blocked

Please Note: These codes have been activated for local clearing payments generated on receipt of the MT103.

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REJECTION OF REQUESTS FOR TRANSFER MESSAGES For specifications regarding rejection messages for MT101 refer to the SWIFT User Handbook Usage Guidelines (Latest Version).

MT 195

Tag Field Status / Subfield / Contents Contents/Options M 20 Transaction reference number 16x M 21 TRN of rejected MT101 message 16x M 75 REJECTION/2a2n/ 6*35x (Narrative) SWIFT defined codes or bilaterally agreed GSL codes M 11R MT and date of original message 3!n6!n

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MESSAGE REJECTION ERROR CODES FOR MT101 The following cases for rejection are defined in the GSL on Requests for Transfer Technical Specifications. Either an IBOS error code (XR2n) or, where appropriate, a SWIFT actual Reason Code (2a2n), is used to identify the reason for rejection, together with the field tag concerned.

ERROR SEQ. / CODE FIELD FIELD CONTENTS REASON FOR REJECTION XR01 A / 52a Account servicing institution If used, this field must contain the Receiving BIC Address of the Receiving Financial Institution XR01 B / 52a Account servicing institution If used, this field must contain the Receiving BIC Address of the Receiving Financial Institution XR02 B Repetitive sequence B Executing Bank does not process multiple sequence B AM02 32B Currency / transaction amount Specified transaction amount is greater than the Executing Bank’s Debit Limit (bank specific) AM03 32B Currency / transaction amount Specified amount/currency is a non processed currency outside of existing (IBOS) agreement AM04 32B Currency / transaction amount Amount of funds available to cover specified transaction amount is insufficient AM05 20, 21 & Sender’s & transaction refs, Possible message duplication 32B Currency / transaction amount AG01 General No agreement is on file at the Executing Bank for affecting associated transaction AC03 59a Beneficiary customer Format of the account number specified is not valid for local clearing ( bank specific) AC04 50H Ordering Customer / Account specified is closed, prohibiting posting of 59a Beneficiary Customer transactions against it AC05 50H Ordering Customer / Use of an Option not permitted under GSL, or data 59a Beneficiary Customer populated (Account Number/BIC under Option G; Account Number/Name and Address under Option H) is not valid at the Executing Bank AC06 50H / Ordering Customer / Account specified is blocked, prohibiting posting of 59a Beneficiary Customer transactions against it XC04 56a Intermediary Use of this field is prohibited XR05 57a Account with institution Mandatory information not supplied or specified option not supported by the Executing Bank XR07 57A Account with institution Executing Bank has advised that local clearing payments cannot be executed (bank specific) XR08 77B Regulatory reporting Field is incorrectly filled or information is missing DT01 30 Execution Date Back Execution Date DT02 30 Execution date Value date requested is not acceptable

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REJECTION OF BALANCE AND ACCOUNT ENQUIRY MESSAGES For specifications regarding rejection messages for MT920 refer to the SWIFT User Handbook Usage Guidelines (Latest Version).

MT 995

Tag Field Status / Sub-field / Contents Contents/Options M 20 Transaction reference number 16x M 21 TRN of rejected MT920 message 16x M 75 REJECTION/2a2n/ 6*35x (Narrative) SWIFT defined codes or bilaterally agreed GSL codes M 11R MT and date of original message 3!n6!n

MESSAGE REJECTION ERROR CODES FOR MT920 The following cases for rejection and associated error codes refer to GSL on Balance Enquiry Technical Specifications and to GSL on Account Enquiry Technical Specifications.

ERROR FIELD CODE TAG FIELD CONTENTS REASON FOR REJECTION AG01 12 Message Requested Incorrect value is populated AC05 25 Account identification Account number specified is not a valid account at the Account with Institution AC06 25 Account Identification Account specified is blocked, prohibiting posting of transactions against it (can simply mean that the account has been closed on the Receiver’s books) AM05 20 Sender’s & transaction refs, Possible message duplication

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TIMEFRAMES FOR COMPLETION Timeframe Timeframe Condition Action STP run-up Reject message Send message 5’ 60’ Please Note: The Technical Specifications for Message Rejection must be revised when the use of multiple messages (all types) is implemented under GSL conditions.

CANCELLATION OF REQUEST FOR TRANSFERS For specifications regarding cancellation and answer messages (MT192 and MT196) for MT101s, refer to the SWIFT User Handbook (Latest Version), Category n, Common Group Message

MT192 messages can be sent before the MT101 execution date. The Receiving Bank must process the MT192 and send back to the originator of the MT192 an MT196 answer, within a reasonable time frame. If the MT101 message has already been processed then this falls out of the GSL scope.

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MT192 REQUEST FOR CANCELLATION The layout of the following fields/sub-fields must comply with SWIFT rules for MT192 Request for Cancellation messages

MT 192

Tag Status / Sub-field Field Contents Contents/Options M 20 Transaction reference number 16x M 21 Related Reference 16x M 11S MT and Date of the Original Message 3!n 6!n [4!n6!n]

O 79 Narrative Description of the Original Message 35*50x O Copy of at least the Mandatory Fields of the Original Message

MT196 ANSWERS The layout of the following fields/sub-fields must comply with SWIFT rules for MT196 Answers messages

MT 196

Tag Status / Sub-field Field Contents Contents/Options M 20 Transaction reference number 16x M 21 Related Reference 16x M 76 Answers* 6*35x

O 77A Narrative 20*35x O 11a MT and Date of the Original Message R or S : R refers to a message received, S refers to a message sent O 79 Narrative Description of the Original Message to 35*50x Which the Answer Relates O Copy of at least the Mandatory Fields of the Original Message Answers* E.g. Cancellation Successful Or Cancellation Unsuccessful received after Cut off Time (COT).

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APPENDIX A - REFERENCED DOCUMENTS

IBOS Association Limited Page 19 of 20 Version 11.4 – October 2012 i Rejection Response Timeframes – URL? ii SWIFT User Handbook (Latest Version) iii GSL on Customer Transfer / Single Customer Credit Transfer: Technical Specifications (Latest Version)