Swift Professional Standards & Competencies 5

Question 1

What distinguishes an MT 202 from an MT 202 COV in the Swift messaging standard?

Accepted Answer

MT 202 COV includes underlying customer credit transfer details for cover payment transparency

Answer

MT 202 COV was introduced to carry information about the underlying customer payment (MT 103) it covers, improving transparency for correspondent banks.

Question 2

A Swift professional working in correspondent banking is asked to maintain records of all Swift messages. What is the minimum retention period per Swift Operating Rules?

Accepted Answer

5 years

Answer

Swift Operating Rules require members to retain message records for a minimum of 5 years, though local regulations may require longer periods.

Question 3

When a Swift user's infrastructure is compromised in a cyber attack, what is the first mandatory action per Swift's CSP incident response requirements?

Accepted Answer

Notify Swift immediately and isolate affected systems

Answer

CSP requires immediate notification to Swift upon discovering a cyber incident involving Swift infrastructure, along with isolating affected components.

Question 4

Which statement best describes the professional standard for handling a customer's request to conduct a 'wash trade' through Swift-connected accounts?

Accepted Answer

Refuse, as wash trading is a form of market manipulation that professionals must not facilitate

Answer

Wash trading is illegal market manipulation; professional standards and legal obligations require refusal regardless of customer instructions or transaction size.

Question 5

In Swift's gpi (Global Payments Innovation) service, what does the unique end-to-end transaction reference (UETR) enable?

Accepted Answer

Real-time tracking of a payment's status across all correspondent banks in the chain

Answer

The UETR is a unique identifier assigned at payment initiation that allows all banks in the payment chain to track and report the payment's progress in real time via gpi.

Swift Practice Test

Swift Practice Test

Swift Professional Standards & Competencies 5