MOD 06 SSI and settlement path instructions: Flashcards
How would you define what Standing Settlement Instructions (SSI) are for a bank?
D : SSI for a Bank consist of the lists of correspondent banks and other parties through which it wants to receive payments in currency.
Which possible options are there to get the Standing Settlement Instructions (SSI) of a financial institution?
A : Exchange of SWIFT MT 670 and MT 671 messages between financial institutions
B : Download of SSI data from the SWIFTRef data
D : Access to the SWIFTRef SSI data and retrieve SSI of a financial institution through API calls
The options to get the Standing Settlement Instructions (SSI) of a financial institution are: 1) Exchange of SWIFT MT 670 and MT 671 messages between financial institutions. 2) Download of SSI data from the SWIFTRef data and 3) Access to the SWIFTRef SSI data and retrieve SSI of a financial institution through API calls.
How are Full and Delta Versions of Standing Settlement Instructions (SSI) directory used?
A : The Delta version can be used after the first complete upload of the full version.
B : The full version must be used when the SSI is uploaded the first time.
C : When uploading the Delta version, new records are added, and existing records are updated.
The FULL Version of the SSI contains all the data of the directory. The DELTA version contains only the records that have been updated compared to the previous version. The full version must be used when the SSI is uploaded the first time. The Delta version can be used after the first complete upload of the full version. When uploading the Delta version, new records are added, and existing records are updated. Uploading the full version may take a long time. And this should happen ideally when there is no processing of payments in the platform, so in general quite late in the night, very early in the morning or during the week-end.
For which purpose does a Bank check the Standing Settlement Instructions (SSI) of a Beneficiary bank during the payment processing?
B : To find the correspondent of the beneficiary Bank in the currency of the transfer
A Bank checks the SSI of a Beneficiary bank during the payment processing to find the correspondent of the beneficiary Bank in the currency of the transfer.
Which of the following parties can be provided in Standing Settlement Instructions?
A : Beneficiary institution
B : Correspondent Bank
C : Intermediary 1
D : Intermediary 2
When is the cover method generally used by a sending bank?
B : The sender can reach the creditor bank via SWIFT, it means there is a RMA relationship.
C : The sender has not excluded the use of the cover method with the creditor bank.
The cover method is generally applied if: 1) the sender can reach the creditor bank via SWIFT, it means there is a RMA relationship and 2) the sender has not excluded the use of the cover method with the creditor bank. Otherwise, the serial method will be used.
When a correspondent and an intermediary are found in the SSI, how does the Bank order them in the settlement path?
A: The bank must put the intermediary before the correspondent in the settlement path.
When a correspondent and an intermediary are found in the SSI, the bank must put the intermediary before the correspondent in the settlement path. The correspondent is generally a major bank that provides services to smaller banks to send and receive payments in currency. And the intermediary is the correspondent of the major bank in the country of the currency of transfer.
A small Bank (Bank S) uses the services of a major bank (Bank M) to send and receive payments in currency. The major Bank has a correspondent in USD (Bank C). A Bank wants to send USD to the small bank. That bank (Bank A) has another correspondent in the USA (Bank D). What will be the settlement path computed by Bank A?
B : Bank D, Bank C, Bank M, Bank S
Bank A sends the payment. The payment will first go through its correspondent Bank D, then through Bank C, the correspondent of Bank M, then logically through Bank M, and finally it will reach the small bank (Bank S).
A Bank consults the SSI and finds the correspondent of the beneficiary bank. Then it finds that it has the same correspondent with the beneficiary bank. What will it do?
A : The bank will put one intermediary in the payment: their common correspondent.
C : The bank will instruct its correspondent to debit its account and credit the account of the beneficiary bank.
If a bank has the same correspondent as the beneficiary bank, then it will put one intermediary in the payment: their common correspondent. And the bank will instruct its correspondent to debit its Nostro account and credit the Loro account of the beneficiary bank.
A Bank consults the SSI and finds the correspondent of the beneficiary bank. Then it finds that it has another correspondent in that country. What will it do?
A : The bank will add its correspondent to the settlement path.
B : The bank will add the correspondent of the beneficiary bank to the settlement path.
C : The bank will instruct its correspondent to execute the instruction.
If a bank has a different correspondent in the country of transfer than the beneficiary bank, then 1) it will add its correspondent to the settlement path. 2) It will add the correspondent of the beneficiary bank to the settlement path. And 3) it will instruct its correspondent to execute the instruction.
