Solution Guide: Correspondent Banking

identitii has reinvented how financial institutions can access, enrich and exchange information about payments in a secure and trusted way. identitii’s token technology uses a distributed ledger and an innovative messaging system to enable information sharing before and after financial messages have been sent. Tokens travel within traditional settlement messages including SWIFT, ACH and RTGS, and emerging settlement technologies. identitii allows banks to move away from Know Your Customer level information to Know Your Transaction detail, with rich information about each and every transaction.

identitii Serra is an append-only federated database management system that supports robust permissioning and an immutable, verifiable audit trail. Leveraging the best parts of distributed ledger technology, relational and graph databases, it enables the secure and auditable exchange of information between systems, branches and institutions.

Serra can be leveraged to provide an enhanced correspondent banking offering to customers

Automate and control processing of both sent and received requests for information for payments

Build policies to enrich payments with commonly requested compliance information

Connect legacy and operational systems and document stores with APIs; index existing information on identitii Timeline and reduce time for investigations when required

Support faster payment processing by enabling supporting information to be attached to payments from respondents

Enable auditability of payment processing & compliance checks with immutability and irrefutability supported by distributed ledger technology

Increase transparency of purpose of transactions with controlled sharing of supporting documents and KYC information

Additional transaction information is collected from corporate customer of respondent and sent to correspondent bank on Request

1

Payment instruction is sent over existing payment networks (e.g. SWIFT MT103).

2

Receiving bank receives payment and requests additional information on the identitii information layer. UETR can be attached to an RFI to enable identification by the sending bank.

3

Sending bank responds to the RFI by attaching information collected for purpose of payment. This collection can occur before or after the payment has been sent.

4

The information is securely transmitted to the trusted receiving institution.


1

Payment instruction is sent over existing payment networks (e.g. SWIFT MT103).

2

Receiving bank receives payment and requests additional information on the identitii information layer. UETR can be attached to an RFI to enable identification by the sending bank.

3

Sending bank responds to the RFI by attaching information collected for purpose of payment. This collection can occur before or after the payment has been sent.

4

The information is securely transmitted to the trusted receiving institution.


Serra for Correspondent Banking | Product Features

identitii’s product can provided to support single branch, multi-branch and multi-bank configurations
Web application with limited connectivity to manage processing of sent and received RFIs Application integrated with information systems to improve the efficiency of RFI processing Multiple instances of Serra are connected to form an intra-bank network of auditable information exchange Multiple organisations connect their instances of Serra to form a multi-institution private network of auditable information exchange
FEATURES STANDALONE ADVANCED CONNECTED NETWORKED
Core application
Append-only database, allowing the storage of payment attributes and related documents
Tokenisation and indexation engine for managing transaction documents and attributes
Workflow for management of internal and external RFI processes
Customisable templates for the collection of information for payments
Search engine based on Elastic Search
Audit trail: digital stamp on events for internal auditors and regulators
User interface
Submit request for information or documentation
Respond to an RFI automatically or manually
Collect new supporting information and documents up to 1 gb
Search RFI and documentation by keywords and plain-text
Validate information to be sent when requested information is restricted
API/SDK integration
Enable integration with banks channels: web portals, and mobile apps
As sending bank, integrate with operational management systems to:
– Enrich payments prior to sending payment messages from your legacy
application
– Automatically retrieve information from legacy system while responding RFIs
As beneficiary bank, integrate with operational management systems to auto-generate RFIs where additional supporting information is required
Immutability & auditability provided by DLT
Intra-branch DLT: All ledger activity recorded by single bank or branch. Bank validates its records on the DLT
Intra-organisational DLT with authority: Ledger activity recorded by a single bank with multiple branches or affiliates. A single authority (bank or non-bank) validates the records
Multi-organisational DLT: proof hashes are recorded by participants. Multiple authorities validate the records using PoA consensus implementation
Shared PKI of trusted counterparties and directory of correspondent counterparties
Inter-bank messaging
Email connector to emit RFI
Easy reconciliation of emailed responses with emitted RFIs
Secured multi-channel messaging system with encryption (AES-256) and signature of each message
2-way SSL HTTP-based connector for messaging system
Message queuing connector for messaging system through VPN
SWIFT connectivity (MT199 &FileAct)
Plugins & connectors
SWIFT gpi connector to auto-retrieve available information based on UETR
Payment screening system connector to automatically request and retrieve
Transaction monitoring system connector to automatically request & retrieve information

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