Information accompanying all qualifying wire transfers should always contain: (b) the originator account number where such an account is used to process the transaction; (c) the originator’s address, or national identity number, or customer identification number, or date and place of birth; (e) the beneficiary account number where such an account is used to process the transaction. An intermediary financial institution should have effective risk-based policies and procedures for determining: (i) when to execute, reject, or suspend a wire transfer lacking required originator or required beneficiary information; and (ii) the appropriate follow-up action.

In light of the new requirements, there is a clear need for banks to adopt more explicit policies—both to ensure the accuracy of their own data and to monitor the data provided by other banks. The term also refers to any chain of wire transfer that takes place entirely within the borders of the European Economic Area (EEA). At the same time, with greater importance being placed on the issue of preventing terrorist financing, banks are seen as the front line to stop funds from falling into the wrong hands.

Unique transaction reference number refers to a combination of letters, numbers or symbols, determined by the payment service provider, in accordance with the protocols of the payment and settlement system or messaging system used for the wire transfer. FATF Recommendations 2012 - Updated October 2020, FATF Methodology - 22 Feb 2013_Updated October 2019, CFATF Procedures for the Fourth Round of AML CFT Mutual Evaluations, 2 October 2020, 4th Round of Mutual Evaluations Calendar August 2019, Home | Contact us | Sitemap | Terms and Conditions |. Accurate is used to describe information that has been verified for accuracy.

Straight-through processing refers to payment transactions that are conducted electronically without the need for manual intervention.

Caribbean Financial Action Task Force (CFATF). For cross-border wire transfers, financial institutions processing an intermediary element of such chains of wire transfers should ensure that all originator and beneficiary information that accompanies a wire transfer is retained with it. There is more to data quality than achieving compliance.

The customer identification number refers to a number which uniquely identifies the originator to the originating financial institution and is a different number from the unique transaction reference number referred to in paragraph 7. Complying with the new regulations is likely to place some significant challenges on the industry.

Recommendation 16 was developed with the objective of preventing terrorists and other criminals from having unfettered access to wire transfers for moving their funds, and for detecting such misuse when it occurs. The ordering financial institution should maintain all originator and beneficiary information collected, in accordance with Recommendation 11.

Its CAMS certification is the most widely recognized anti-money laundering certification among compliance professionals.

If banks look at the quality of the data and fix any issues before the data hits the sanctions screening, transaction monitoring, KYC or anti-money laundering systems, then those systems will be able to operate much more effectively. For qualifying wire transfers, a beneficiary financial institution should verify the identity of the beneficiary, if the identity has not been previously verified, and maintain this information in accordance with Recommendation 11. In conclusion, data quality may not have attracted as much focus in the past as some other topics. 20. This is true because sanctions filters and systems are being fed data that goes back to the quality of the payments themselves.

Many FATF member countries—and the EU (which is also a FATF member)—are in the process of incorporating the FATF recommendations into their own regulations and requirements.

Information accompanying domestic wire transfers should also include originator information as indicated for cross-border wire transfers, unless this information can be made available to the beneficiary financial institution and appropriate authorities by other means. Other spinoff benefits may include improved straight-through processing (STP) and improvements in transaction monitoring processes. Cover Payment refers to a wire transfer that combines a payment message sent directly by the ordering financial institution to the beneficiary financial institution with the routing of the funding instruction (the cover) from the ordering financial institution to the beneficiary financial institution through one or more intermediary financial institutions.