Swift Regulatory Frameworks & Compliance 4

Question 1

How does the EU's Funds Transfer Regulation (FTR) 2015/847 interact with SWIFT payment messages?

Accepted Answer

It requires complete payer and payee information to accompany SWIFT payment messages processed by EU PSPs

Answer

FTR 2015/847 implements FATF's travel rule for EU payment service providers, requiring structured payer/payee data in all payment messages.

Question 2

What is a SWIFT gpi (Global Payments Innovation) tracker used for in a compliance context?

Accepted Answer

Providing end-to-end visibility on cross-border payment status, fees, and FX conversion

Answer

SWIFT gpi's Tracker gives sending and receiving banks real-time visibility into payment status, which supports investigations and dispute resolution.

Question 3

When a US bank receives a SWIFT MT 202 COV message, what additional compliance obligation applies compared to a standard MT 202?

Accepted Answer

The bank must screen the underlying originator and beneficiary information from the MT 103 that the COV covers

Answer

An MT 202 COV covers a customer credit transfer, requiring the intermediary bank to screen the originator and beneficiary data included in the message.

Question 4

What is the purpose of SWIFT's KYC Registry?

Accepted Answer

To allow financial institutions to share standardized due diligence data about their correspondent relationships

Answer

The KYC Registry is a centralized platform where banks upload and share standardized compliance documentation to streamline correspondent banking due diligence.

Question 5

Under FinCEN's rules, what is the threshold at which US banks must collect and retain originator information on international wire transfers?

Accepted Answer

$3,000

Answer

FinCEN's Funds Transfer Rule (31 CFR 1010.410) requires banks to collect and retain originator and beneficiary information for wire transfers of $3,000 or more.

Swift Practice Test

Swift Practice Test

Swift Regulatory Frameworks & Compliance 4