Swift Regulatory Frameworks & Compliance 2

Question 1

Which international body oversees SWIFT's compliance with global financial messaging standards?

Accepted Answer

The Financial Action Task Force (FATF)

Answer

FATF sets the global standards for anti-money laundering and counter-terrorist financing that SWIFT members must follow.

Question 2

What is the primary purpose of SWIFT's Customer Security Programme (CSP)?

Accepted Answer

To enforce baseline security controls on member institutions

Answer

The CSP mandates that all SWIFT users implement a set of mandatory and advisory security controls to protect the global financial network.

Question 3

Under the EU's DORA regulation, how does SWIFT network connectivity affect a financial institution's obligations?

Accepted Answer

Firms must include SWIFT connectivity in their ICT risk management frameworks

Answer

DORA requires EU financial entities to manage ICT risks holistically, which includes third-party services like SWIFT connectivity.

Question 4

What does a SWIFT BIC (Business Identifier Code) uniquely identify?

Accepted Answer

A specific financial institution and its location

Answer

A BIC identifies a specific financial institution, its country, location, and optionally its branch.

Question 5

Which regulation requires US banks to screen SWIFT payment messages against OFAC's SDN list?

Accepted Answer

Office of Foreign Assets Control (OFAC) regulations under IEEPA/TWEA

Answer

OFAC regulations require US persons and financial institutions to block or reject transactions involving sanctioned parties listed on the SDN list.

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