ISO 20022: Citi Mini Series & Reference Guide Part 3

ISO 20022: Citi Mini Series & Reference Guide | 6 Message Flow Scenario 1 — Credit Transfer — A non-financial institution (debtor) would like to make a payment to its supplier (creditor) by instructing its bank electronically. Debtor’s bank and creditors bank are participants with the clearing. Hence the transfer funds are done directly through them. Message Groups: Clearing & Settlement What is the Clearing & Settlement message group? The Payments Clearing and Settlement (pacs) message group supports the clearing and settlement processes for payments between financial institutions. These messages are specifically designed to facilitate the clearing and settlement of wire transfers, direct debits and cancellations directly between banks or via an automated clearing house (ACH) and real-time gross settlement systems (RTGS). pacs message types pacs.004 This message is exchanged between debtor agent and creditor agent to move funds from the debtor to the creditor pacs.009 This message is exchanged between two financial institutions to move funds pacs.002 Initiated by a Financial Institution to Financial Institution or Clearing to FI on the status of a payment. A negative response is mandatory pacs.004 Initiated by the beneficiary bank to return funds when the funds cannot be credited to the beneficiary account pacs.010 Initiated by a Customer/FI/Clearing to a SWIFT member to instruct the receiver of the message to debit the account of a third party specified in the message and to credit the corresponding amount in favor of the sender of the message Party Central Bank Debtor A Debtor’s Agent B Creditor’s Agent Creditor Clearing pacs.008 A B pacs.002 pacs.008 pacs.002