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103 and 202cover payment

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Fri, 09/04/2015 - 05:32
hussey
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Joined: 09/04/2015
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Hi All,

I have a question with regrd to 202cover payment 

for eg- im sending a 103 msg Directly to Beneficiary's bank and sending a 202cover msg to the bank which im having a nostro account.

say for instance based on my 103msg bene bank is crediting the funds to beneficairy before sighting funds(based on the trust that it will recive funds via 202cov msg)

but incase any of the party in 202 msg finds that ordering customer is a compliance hitlist person.the payment will be be stopped if im not wrong

is Benebank can recourse the funds from bene or if otherwisw who will bw responsible for the funds credited to Bene

Thanks,

 

Hussey

 

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Sat, 09/05/2015 - 01:24
#1
pan
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Joined: 09/13/2007
daylight exposure

Hi Friend,

Banks normally limit the amount to be credited on the basis of MT103 received by a corrispondent but funds not yet in the statement of account. Anyway if the amount is in favour of a blacklisted person and paid, but funds seized by the bank with we have a nostro account, this is a risk. The same if you receive a MT910 from correspondent bank and the amount is seized later.

IMHO, it is impossible to check all the names, some devices have been introduced to assess names but or they are so strictly that stopped many innocent transfers of funds or dont work due to many persons having the same name, i.e  arabic named Mohammed or Ahmed or italian family name Rossi  or english Smith etc.

Other comments appreciated

Ciao

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