basic remittance transaction 1. type of remittance 2. telegraphic transfer flow chart (1)in case...

Basic Remittance Transaction

1. Type of Remittance

2. Telegraphic Transfer Flow Chart

(1)In case payment bank is depository correspondent bank(2)In case payment bank is non-depository correspondent bank (3)In case remittance amount is unpaid

3. Demand Draft Flow Chart

4. SWIFT

(1)Definition(2)Message Type(3)Specialized Category(4)Character & Sign in Use(4)SWIFT BIC (Bank Identifier Code)

5. IBAN (International Bank Account No.)

6. National Clearing Code

7. New Quick Remittance Service

(1) New Quick Remittance Service (For Outward Remittance – Overseas Branch)

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1.Type of Remittance

It is the transaction receiving remittance amount and fee from client and put on hold in foreign transaction bank account or bills sold a/c, it is classified into T/T, M/T and D/D based on remittance method

Type of Remittance

Telegraphic Transfer Remittance notification by SWIFT, Telex, Fax and RTGS Most fast and safe method among remittance SWIFT is widely used as of now RTGS Message of local settlement system is used in some countries and it is obligated in some countries

1) T/T

※What is RTGS? :It is the abbreviation for Real-Time Gross Settlement that is local fund transfer system. As representative RTGS, there are Fedwire of US, MEPS of Singapore, DeskBank of Australia, PlayLing for the Netherlands, CAPS of Great Britain, SIT of France, DTA/ELS of Germany, etc.

2) M/T

Mail Transfer Transaction to send M/T to paying bank via mail by generating it with receipt of remittance amount Other transaction processes is same as T/T except the sending method

What is RTGS?

Demand Draft Issuance of D/D to client after generating it with receipt of remittance amount Remittance method for acceptor to withdraw remittance amount by presenting the D/D to paying bank prescribed on the after client sends it to acceptorAlthough bank fee is inexpensive, there is risk for loss.Used in small amount remittance

3) D/D

D/D Form used in KEB

D/DDemand DraftPaying bank is not printed on check and paying bank is assigned at the point of check issuance.

KRS

Korea Exchange Bank Remittance ServiceCheck with printing of Paying Bank as BONY N.Y. and MICR printing of Check No. and Settlement Bank CodeUsed only when issuing currency is USDIt may be used in remittance to country other than USA when there is no depository correspondent bank of our bank

Basic Remittance Transaction

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2. Telegraphic Transfer Flow Chart(1)In case paying bank is depository correspondent bank

BeneficiaryRemitter

Paying Bank(Account with bank) Remitting Bank

Depository Correspondent Bank

② Send Payment Order

① Request forRemittance

③ Payment ofRemittance Amount

(Payment Order, MT100,MT103,RTGS)

Means the bank that can settle the remittance fund, etc since current account in name of Korea Exchange Bank is opened in foreign banks or current account in name of foreign banks is opened in Korea Exchange Bank

Send payment order directly to the paying bank without commission to the third bank

Paying authorizes the OUR A/C or Their A/C and pays the remittance amount to beneficiary

(2)In case paying bank is non-depository correspondent bank

BeneficiaryRemitter


② Payment Order


④ Payment of Remittance Amount

(Payment Order, MT100,MT103)

Reimbursement Bank

Sole use of MT100,MT103

③ Payment Order(Payment Order, MT100,MT103,RTGS)

All transactions are process with solely using SWIFT MT100 or MT103

Necessity for bank to perform fund settlement on remittance amount. Bank with deposit correspondent contract with our bank

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BeneficiaryRemitter


②Order for Debit Authorization

① Request for Remittance


(Debit Authorization MT202)

Reimbursement Bank

Use of MT103 or MT 100 with MT202 at the same time

② Credit Advice(Credit Advice MT910)

② Payment Order(Payment Order, MT100,MT103,RTGS)

④

In case client shall receive fund quickly regarding the elongation in fund settlement period for currency other than USD, etc

Cost Analysis for Remittance

No method is concluded to be advantageous in aspect of cost

Remittance Fee

Remittance Fee

Cable Fee

Cable Fee

Use of MT100,MT10

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Combination use of either MT100 or

MT103 withMT202

Fee of Settlement BankThrough

BankThrough

BankThrough

Bank …

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(3) In case remittance amount is unpaid

For error in minor information, Amend Processing to Remitting Bank

Return processing in case paying bank unpaid the remittance amount due to beneficiary unknown, cancellation in remittance, etc.

BeneficiaryRemitter


② Send Payment Order



(Payment Order, MT100,MT103,RTGS)

④Return

⑤ Refund for Returned Amount

Refund for Returned Amount: Refund remittance amount received of return notification

3. Demand Draft Flow Chart

BeneficiaryRemitter


② Issue D/D① Request for

Remittance

③ Send D/D

④Present D/D⑤ Payment of Remittance Amount

(Request in Remittance Amount

③ Send D/D Issuance Notification(MT110)

⑤ Debit Advice

Return :Return with no processing of remittance amount in Paying Bank (Account with bank)

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4. SWIFT(1) Definition

Abbreviation for The Society for Worldwide Interbank Financial Telecommunication

It was established in May. 1973 by banks of 15 countries including USA, Europe, etc to construct wor

ldwide data telecommunication network to send message of foreign exchange transaction such as rem

ittance, collection, commercial L/C and capital transaction between foreign countries.

Korea registered as member on Mar. 1992 as 76th country.

SWIFT is the international organization for data telecommunication without fund settlement capability

(2) Message Type

① : Abbreviation for Message Type② : Message Category : Indication for Category of Relevant Transaction③ : Message Group : Indication for Certain Function within Transaction Category④ : Message Type : Indication on Details of Certain Function

Standardization in message type for the quick and precise message sending

It is composed of 3 digit number and each number has certain meaning

MT n n n

① ② ③ ④

Message Type

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(3) Special Category

Message category

Category of Relevant Transaction

1 Customer Payments and ChequesEx) MT 100, MT103, MT110

2 Financial Institution TransfersEx) MT202

3 Treasury Markets-Foreign Exchange, Money Markets and Derivatives

4 Collections and Cash Letters

5 Securities Markets

6 Treasury Markets-Precious Metals

7 Documentary Credits & Guarantees

8 Travel Cheques

9 Cash Management and Customer Status

0 Broadcast

(4) Character & Sign in Use

Only use character & sign allowed in SWIFT for message sending

1) Character & Sign in Use

English Alphabet

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

0 1 2 3 4 5 6 7 8 9 10

/ - ? : ( ) . ‘

※Caution: No use of Colon (:) in first line

Sign

Arabic Number

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2) Example of sign in no use

Sign in No Use Sign in Use Notes

= EQUAL Input Directly as Character

@ AT or UNIT PRICE

$ USD

[ ] ( )

& AND

{ } ( )

% PCT or PERCENT

; : However, no use of colon(:) in first line

“ “ ‘ ‘ ‘ ‘ Single Quotes

(5) SWIFT BIC

Abbreviation for SWIFT Bank Identifier Codes

Unique code granted to each financial institution for the identification of financial institution in automatic processing of telecommunication message sent and received between financial institutions

Composer of either 8 digits or 11 digits

BANK CODE COUNTRY CODE LOCATION CODE BRANCH CODE

+ +

4 digit character 2 digit character 2 digit character or number

3 digit character and number

+

Ex.Headquarter - KOEX KR SE (8 digits) of our bank

KOEX: Abbreviation for Korea Exchange Bank

KR : Korea - Country Code

SE : Seoul - Location Code

Prevent generation of Repair Charge by putting bank code for each country of BIC or IBAN before drawing up the remittance request

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○ Method to confirm BIC of the opposite bank with statement received in SWIFT

MIR : 071008CHASUS33DXXX1821434143 MIR-TIME : 0314-----①

MOR : 071009KOEXKRSEAXXX9868449829 MOR-TIME : 1714-----②MUR : FM : JPMORGAN CHASE BANK N.A..,NEW YORK TO : KOREA EXCHANGE BANK, SEOUL DATE:070309

MIR : 071008 CHASUS33DXXX 1821434143 MIR-TIME : 0314

① Message Input Reference

MIR : MESSAGE INPUT REFERENCE 071008 : Local date for message sent by sending bank (Oct. 8th, 2008)

CHASUS33DXXX : -SWIFT BIC of sending bank

- CHAS : BANK CODE Means JPMORGAN CHASE BANK- US : COUNTRY CODE (means USA)- 33 : CITY CODE (means NEW YORK)- A : LOGICAL TERMINAL

- XXX : Place for BRANCH CODE-XXX’ means no relevant data

※ Method to input BIC of receiving bank in drawing the receiving statement

1821 : Sequence No. with which sending bank accessed to SWIFT System with SESSION NUMBER434143 : Sequence No. granted when sending bank sends the message to SWIFT system with Input Sequence No.MIR-TIME : 0314 is message sending time, local time sending bank sent message to SWIFT system

In case BRANCH CODE is not XXX : Disregard number or character in 9th digit and input 11 digits Ex :CHASUS33DCLS →CHASUS33CLS

In case BRANCH CODE is XXX : Input only 8 digits from the front Ex : CHASUS33

MOR : 071009KOEXKRSEAXXX9868449829 MOR-TIME : 1714

② Message Output Reference

MOR : MESSAGE OUTPUT REFERENCE 071009 : Date Woori Bank received the message (Oct. 9th, 2007) KOEXKRSE : SWIFT BIC of Woori Bank 9868 : Sequence No. with which Woori Bank accessed to SWIFT system with SESSION NUMBER MOR-TIME : 1714 is message receiving time, local time receiving bank received message from SWIFT system

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○ BIC CODE for Banks in Korea

Name of Bank (KOR) Name of Bank (English) SWIFT BIC

SC Jeil Eunhang STANDARD CHARTERED BANK, FIRST BANK KOREALIMITED,SEOUL SCBL KRSE

Woori Eunhang WOORIBANK,SEOUL HVBK KRSE

Gieop Eunhang INDUSTRIAL BANK OF KOREA, SEOUL IBKO KRSE

Nonghyeop NATIONAL AGRICULTURAL COOPERATIVE FEDERATION, SEOUL NACF KRSE

Busan Eunhang PUSAN BANK, SEOUL PUSBKR2INT

Jeiju Eunhang JEJUBANK, SEOUL JJBK KR22

Daegu Eunhang DAEGU BANK LTD., SEOUL DAEBKR22SEL

Gyeongnam Eunhang KYONGNAM BANK, SEOUL KYNAKR22ITL

Jeongbuk Eunhang JEONBUK BANK LTD., SEOUL JEON KRSE

Gwangju Eunhang KWANGJU BANK LTD., SEOUL KWAB KRSE

Gukmin Eunhang KOOKMIN BANK, SEOUL CZNB KRSE

Shinhan Eunhang SHINHAN BANK, SEOUL SHBK KRSE

Suhyeop SUHYUP BANK, SEOUL NFFC KRSE

Hana Eunhang HANA BANK, SEOUL HNBN KRSE

Saneop Eunhang KOREA DEVELOPMENT BANK, SEOUL KODB KRSE

Suchulip Eunhang EXPORT IMPORT BANK OF KOREA, SEOUL EXIK KRSE

Meritz Jonggeum MERITZ INVESTMENT BANK, SEOUL KFBC KRSE

Woori Tuja Jeunggwon WOORI INVESTMENT AND SECURITIES CO.,LTD.,SEOUL WISH KRSE

Geumho Jonggeum KUMHO, INVESTMENT BANK, SEOUL KHMB KRSE

** Hong Kong: //HK + 3 digits ** Ireland: //IE + 6 digits** Switzerland: //SW + 6 digits ** Russia : //RU + 9

digits

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5. IBAN (International Bank Account No.)

Abbreviation for International Bank Account No.

International standardization of beneficiary account no. by EU membership countries for the purpose of straight through processing in remittance, etc between foreign countries.

1) Composition

DE : Country Code of Germany, 19 : CHECK DIGIT52410400 : Korea Exchange Bank AG National Clearing code//BL524104003011009010 : Beneficiary Account No.

① 2 digit country code (Ex: Germany-DE, Italy-IT, France-FR)② 2 digit Check Digit③ Bank Code = National Clearing Code④ Beneficiary Account No. (Germany – 10 digits)⑤ No. of digits differ for national clearing code and beneficiary account no.

①COUNTRY CODE ②CHECK DIGIT

③ National Clearing Code

④ Beneficiary Account No.

++ +

2) Ex

DE 19 52410400 3011009010

6. National Clearing Code, Nat’l Routing Code

National Clearing Code, National Routing Code

In foreign countries, national clearing code (//FW, //CC, etc) is indicated in beneficiary account no. instead of branch name of beneficiary transaction bank thus you must input it for quick and precise remittance

Country Name Code System

USA ABA NO=FED WIRE NO =ROUTING NO

FW+9 digits (2+2+4+1)(Region+ Bank Type + CHIPS + 1 digit)

Canada DIRECT PAYMENT ROUTING NO CC+9 digits (4+5)(Bank + Branch=TRANSIT NO)0001:BANK OF MONTEAL0003:ROYAL BANK OF CANADA0004:TORONTO DOMINION BANK0010:CANADIAN IMPERIAL BANK OF COMMERC

Great Britain

SORT CODE SC+6 digits (2+2+2)(Bank + Region + Branch)

Germany BLZ NO BL+8 digits(3+3+2)(Bank + Region + Branch)

Australia BSB NO(Bank State Branch Code)

AU+6 digits(2 + 2+ 2) (Bank + Region + Branch)

France BANQUE CODE+GUICHET CODE 10 digits(5+5)(Bank + Branch) **Input to ”Beneficiary Account No.”

Italy ABI+CAB ABI 5 digits + CAB 5 digits ** Input to “Beneficiary Account No.”

New Zealand NATIONAL CLEARING CODE NZ+ 6 digits (2+4)(Bank + Branch)In case beneficiary account no. is in 15 digits, first 6 digits are national clearing code

Austria BLZ (AUSTRIAN BANKLEITZAHL) NO

AT+ 5 digits

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Quick remittance service where notification to beneficiary within 30 minutes of remittance from foreign countries, payment of remittance amount or deposit of remittance amount to account and notification on result of remittance process to remitter via e-mail are processed through cooperation with overseas branch.

Outline of Service

Service Target• Foreigner staying in Korea who needs emergency fund • Client including company demanding quick remittance, etc requesting for urgent remittanceContents of Service

A. Service Country & City (8 countries 11 branches): Japan (Tokyo, Osaka), Hong Kong, Philippines (Manila), Singapore, Australia (Sidney), China (Peking, Tianjin, Dalian), Vietnam (Hanoi), Indonesia (Jakarta) B. Remittance Currency : USD & Local CurrencyC. Remittance Amount :Amount equivalent to USD 10,000 or less D. VALUE DATE : Same date as date of remittance (straight through processing)E. Remittance Hour : 30 minutes before closing hour of domestic branch

Remittance Hour of Overseas Branch

Region KEB Branch Name Local Time for Remittance

Korea Time Time Difference with Korea

Japan Tokyo Branch, Osaka Branch 09:00 15:00 09:00 15:00 None

China Peking Branch, Dallia Branch,Tianjin Branch, Shanghai Branch

09:00 15:00 10:00 16:00 1 hour

Hong Kong Hong Kong Branch 09:00 15:00 10:00 16:00 1 hour

Singapore Singapore Branch 09:30 15:00 10:30 16:00 1 hour

Philippines Manila Branch 09:00 15:00 10:00 16:00 1 hour

Australia (Sidney)

KEB Australia 10:00 16:00 09:00 15:00 + 1 hour

Vietnam Hanoi Branch 08:00 - 14:00 10:00 – 16:00 - 2 hours

Indonesia Danamon Exchange Bank(Located in Jakarta)

09:00 14:00 11:00 16:00 2 hours

* Closed on Saturdays, Sundays and Local Holidays* Local time for remittance is calculated in accordance with business hour of Korea (30 minutes for closing hour considering the processing time after reception of New Quick Remittance) within business hour of local branch

F. Fee for New Quick Remittance - Amount : USD 10 for each remittance (Separate from remittance fee) - Possession of Profit : Overseas branch performing remittance - Account Settlement : Miscellaneous profit from foreign exchange fee (straight through processing) - No exemption with discretion of chief of branchG. Refund of Fee - Refund Target : In case appeal has been instituted due to failure of operation support center (foreign exchange team) of headquarter in notification to beneficiary within 30 minutes after the remittance to overseas branch or failure in payment of remittance amount -Account Settlement : Debit from miscellaneous profit from foreign exchange fee account * Instruct window to recommend overseas remitter to make phone call to domestic beneficiary regarding the remittance and domestic beneficiary to directly visit domestic branch for withdrawal.

7. New Quick Remittance Service

basic remittance transaction 1. type of remittance 2. telegraphic transfer flow chart (1)in case...

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