2079325 ISO 20022 Citi Mini Series and Reference Guide Part

ISO 20022: Citi Mini Series & Reference Guide  | 18 ISO Message OBO Payments With Opening Banking / PSD2 and increase in Payment intermediaries OBO payments have become very common and the current MT structured is not geared up to support these payments efficiently. ISO messages have got dedicated and structured fields to support 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 or other workarounds are implemented, which needs bi-lateral agreements to be in place and also introduces the risk of mismapping and data truncation. 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 In MX messages there are dedicated fields available for various parties in the payments. There are dedicated fields available for Ultimate Debtor, Debtor, Initiating Parties. MX - Description Definition Debtor Party that owes an amount of money to the (ultimate) creditor. Inthe context of the payment model, the debtor is also the debitaccount owner. Ultimate Debtor Ultimate party that owes an amount of money to the (ultimate)creditor Debtor Agent Financial institution servicing an account for the debtor. Forwarding Agent Financial institution that receives the instruction from the initiatingparty and forwards it to the next agent in the payment chain forexecution. Initiating Party Party initiating the payment to an agent. In the payment context, this can either be the debtor (in a credit transfer), the creditor (in a direct debit), or a party that initiates the payment on behalf of the debtor or creditor. Creditor Agent Financial institution servicing an account for the creditor Creditor Party to which an amount of money is due. In the context of thepayment model, the creditor is also the credit account owner. 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