2079325 ISO 20022 Citi Mini Series and Reference Guide Part

17 | Treasury and Trade Solutions On Behalf Of Payments (OBO) Support for OBO Payments: One major pain point for corporates reconciling their payments and receivables, especially for those with centralized treasury structures, is the inability to fit all required sending and receiving party information for on- behalf-of (OBO) payments within the current cross-border payments message format. The current MT structure is not designed to support these payments efficiently. In contrast, ISO messages have dedicated and structured fields to support this type of payments message. pain.001 pacs.008 B A MT – free format option :50K:/24681012 E GHAZARYAN ARMAN ALBERTI KOSTANYAN 1/5 KOSTANYAN 1/5 ULTIMATE DEBTOR ADD 3 :72:/ACC/CHASUS33XXX //BY ORDER OF ABCDUS33XXX FOR GH //AZARYAN ARMAN ALBERTI ACCOUNT //24681012 :72:/INS/VISAUS33XXX The existing MT messages have limited number of fields and most of the data related to debtor or initiating party etc. in case of an OBO payments or Nested payments are put into the free format fields like Tag 72, which needs bi-lateral agreements to be in place and also introduces the risk of mismapping and data truncation. Ultimate Debtor Debtor Initiating Party Debtor Agent Citi NY Creditor Agent XYZ UK John Smith