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QA2019-54 - Payments

QA2019-54 - Payments

Owned by SRB Services
Feb 01, 2024
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Resolution Reporting Subject Matter Guidance
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QA2019-54

Question


Are transactions included which are the consequence of a non-MFI payment (instruction)? E.g. corporate A gives a payment order to his bank (a) to transfer money to corporate B, who has an account with bank (b). Is this transaction to be reported not only in F. 22 but also in F.21? What if bank a and bank b do not have direct connection but use bank c to transfer money to bank b?


Response


Payment services to MFIs are about “payment services offered to MFIs, with or without use of external payment systems. This also includes correspondent banking services”. The focus is on the service to other banks (indirect access to FMIs or internal settlement of transactions on behalf of another MFI). Whether the instruction originates from a non-MFI is of no importance. Example: if a corporate A instructs its bank (a) to pay corporate B, which has an account with bank (b) this should be reported in F.221 by bank (a) and by bank (b): it is not a service rendered by bank (b) to bank (a), but a service provided by banks (a) and (b) to their respective clients. If bank (a) uses bank (b) to transfer money to bank (c) [possibly in another country, and also possibly by using bank (b) to indirectly participate in a payment or settlement system], then it should be reported under F.21 by bank b (the service provider). Bank (a) does not report anything under F.21, but may still need to report the service to its own customer (if this payment instructions originated from, say, corporate A) in F.22.