Changes due to introduction of MT 202 Cover payments
Recently ABN AMRO has faced an increase in inquiries from the international SWIFT traffic.
Since November 2009 the so called cover payments have become active in the SWIFT system due to international regulations. Correspondent Banks have an active duty to investigate and based on the client's information to decide whether or not they will proceed to participate in a payment/transaction.
These inquiries lead to the following:
An increase of the intensity of filtering, polling and the risk of freezing of funds
Local and bank-specific checklists (based on the currency) are appropriate
Guaranteed payment implementation on timeliness and completeness decreases
Some countries or regions are sensitive to delays, such as embargoed countries and the Middle East.
ABN AMRO can not exclude delays, but there are simple measures for clients to reduce changes on delays:
Clarity on the reason for payment. The reason for paying blank (no description in the payment order) will lead to inquiries and delays
Be specific in payment descriptions; use an invoice number or use the ship's IMO number instead of the name of a ship;
Add Additional information about the beneficiary if payment is made to persons with Arab or Spanish names.
The bank is not allowed to modify payment information single handed. Therefore we will always contact our clients in case of inquiries.
Click here to find out more on the technical description on cover payments and click here for the General Conditions of the bank.