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2016 Wells Fargo GFI Payment Services Handbook

Essential guide to making payments in USD, EURO, YEN, and RMB

Wells Fargo Global Payments Handbook

Table of contentsIntroduction ..............................................................................................................................................................................................................................................................................................................1

About Wells Fargo’s payment products .........................................................................................................................................................................................................1

About Wells Fargo ......................................................................................................................................................................................................................................................................................1

Our global presence ................................................................................................................................................................................................................................................................................1

What’s new in payments...............................................................................................................................................................................................................................................................2

Federal Reserve’s faster payments ..........................................................................................................................................................................................................................2

Payments overview — understanding the U.S. dollar, euro, and Japanese yen payment systems .........................................................................................................................................................................................................................................................................................3

USD ........................................................................................................................................................................................................................................................................................................................................3CHIPS ..............................................................................................................................................................................................................................................................................................3Fedwire ...........................................................................................................................................................................................................................................................................................3Fedwire and CHIPS processing hours ................................................................................................................................................................................................................4ACH ...................................................................................................................................................................................................................................................................................................4Checks ............................................................................................................................................................................................................................................................................................4

Euro .......................................................................................................................................................................................................................................................................................................................................4TARGET2 ....................................................................................................................................................................................................................................................................................................................4EBA EURO1 ...............................................................................................................................................................................................................................................................................................................5Other Euro systems ........................................................................................................................................................................................................................................................................................5STEP1 ...............................................................................................................................................................................................................................................................................................................................5STEP2 ..............................................................................................................................................................................................................................................................................................................................5SEPA (Single Euro Payments Area) ................................................................................................................................................................................................................................................5Checks ...........................................................................................................................................................................................................................................................................................6

Japanese yen ..........................................................................................................................................................................................................................................................................................................6Foreign Exchange Yen Clearing System (FXYCS) .................................................................................................................................................................................6Bank of Japan Financial Network System (BOJ-NET) .......................................................................................................................................................................6Other Japanese Yen systems .....................................................................................................................................................................................................................................6

Zengin system ................................................................................................................................................................................................................................................................6Check and promissory note clearing .........................................................................................................................................................................................................6

Chinese Renminbi (RMB) Real Time Gross Settlement System (RTGS) ..............................................................7Hong Kong Clearing ................................................................................................................................................................................................7Cut-O# Times ............................................................................................................................................................................................................7China National Advanced Payment System ..................................................................................................................................................7

U.S. government regulations on the processing of your payments ..................................................................................................8

O$ ce of Foreign Assets Control ..........................................................................................................................................................................................................................................8Information Reporting and Bank Secrecy Act ...............................................................................................................................................................................................9

USA PATRIOT Act ......................................................................................................................................................................................................................................................................................9

Dodd-Frank 1073 ...........................................................................................................................................................................................................................................9

How your payments are processed by Wells Fargo .........................................................................................................................................................10

Wells Fargo’s payment products ................................................................................................................................................................................................................................11

USD payment products .......................................................................................................................................................................................................................................................................11Commercial payments ...........................................................................................................................................................................11

GlobalPay.USD ........................................................................................................................................................................................................... 11GlobalPay.Intraday .................................................................................................................................................................................................. 11GlobalPay.PreAdvice............................................................................................................................................................................................... 11CyberFile Transfer ................................................................................................................................................................................................... 11GlobalPay.File: Bulk File Delivery ...................................................................................................................................................................... 11 GlobalPay.FX .............................................................................................................................................................................................................. 11GlobalPay.FXIQ ........................................................................................................................................................................................................12


Principal Preservation ............................................................................................................................................................................................12GlobalPay.PayProtect ..............................................................................................................................................................................................12GlobalPay.OneDeduct .............................................................................................................................................................................................12Treasury payments ............................................................................................................................................................................. 12TreasuryPay.USD ......................................................................................................................................................................................................12

Trade payments ..........................................................................................................................................................................................................12Trade.Export Collect ...............................................................................................................................................................................................12 TradePay.202Deduct...............................................................................................................................................................................................13 TradePay.740 ..............................................................................................................................................................................................................13

Euro payment products ...............................................................................................................................................................................................................................................................13

Commercial payments ............................................................................................................................................................................................13

GlobalPay.Euro ..........................................................................................................................................................................................................13

GlobalPay.EuroOut ..................................................................................................................................................................................................13

Treasury payments ...................................................................................................................................................................................................13

TreasuryPay.Euro .....................................................................................................................................................................................................13

Trade payments ..........................................................................................................................................................................................................13

TradePay.Euro 202Deduct ....................................................................................................................................................................................13

TradeEuro.Export Collect......................................................................................................................................................................................14

TradePay.Euro 740 ...................................................................................................................................................................................................14

Yen payment products .................................................................................................................................................................................................................................................................14

Commercial payments ............................................................................................................................................................................................14

GlobalPay.Yen .............................................................................................................................................................................................................14

Treasury payments ...................................................................................................................................................................................................14

TreasuryPay.Yen ........................................................................................................................................................................................................14

Trade payments ..........................................................................................................................................................................................................14

TradePay.Yen 202Deduct ......................................................................................................................................................................................14

Incoming Fee Deduct .............................................................................................................................................................................14

RMB payment products....................................................................................................................................................... 15

Commercial and Treasury payments ....................................................................................................................................................................15

GlobalPay.RMB ..............................................................................................................................................................................................................15

GlobalPay.FX.RMB .......................................................................................................................................................................................................15

Payment orders sent via SWIFT MT103 .........................................................................................................................................................16

Payment orders sent via SWIFT MT202 .........................................................................................................................................................17

USD Payment Reference Guide ............................................................................................................................................................................................................................18

Fedwire and CHIPS formatting guide ...................................................................................................................................................................................................20

Principles for straight-through processing CHIPS and Fedwire payments .........................................................................20

CHIPS format ................................................................................................................................................................................................21

Fedwire format ..............................................................................................................................................................................................21

Fedwire format example ..........................................................................................................................................................................22

International payment formatting guide ........................................................................................................................................................................................22

Formatting overview .................................................................................................................................................................................22

Four simple principles for straight-through processing for SWIFT ........................................................................................23

IBAN (International Bank Account Number) ..................................................................................................................................24

SWIFT .............................................................................................................................................................................................................25


Other country clearing codes ................................................................................................................................................................26

Other party identifi ers ..............................................................................................................................................................................26

Codewords for fi eld 72 (Sender to Receiver information) ........................................................................................................... 27

MT103, MT200, MT202, and MT202COV payment formats ..................................................................................................................................................28Customer transfers – MT103 .....................................................................................................................................................................................................................................................28Bank transfer for your own account – MT200 ..................................................................................................................................................................................30Bank transfer to other bank benefi ciaries – MT202 .....................................................................................................................................................................31Cover payments – MT202 COV ......................................................................................................................................................................................................................32MT202 message for trade transaction requiring charges to be deducted ............................................................................................................... 34

Examples of properly formatted MT103, MT200, and MT202 payments ......................................................................35

USD examples ...................................................................................................................................................................................................................................................................................................35MT103 Customer transfer – “OUR” ..................................................................................................................................................................................................................35MT103 Customer transfer – “BEN” ..................................................................................................................................................................................................................36MT103 Customer transfer – “SHA” .......................................................................................................................................................................37MT200 Bank transfer for own account ...............................................................................................................................................................37MT202 Bank transfer in favor of a third bank trade transaction ......................................................................................................................................... 38MT202 COV – Bank transfer to cover underlying customer credit transfer ............................................................................................................. 38MT103 debiting USD account in foreign currency by debiting to USD account ..................................................................................................... 39

Samples of common formatting errors and corrections........................................................................................................................................40

Customer transfer – MT103 payment ......................................................................................................................................................................................................................40

Bank transfer – MT202 ....................................................................................................................................................................................................................................................................43

Euro examples .................................................................................................................................................................................................................................................................................................46MT103 Customer transfers ................................................................................................................................................................................................................................................................46MT202 Bank transfer covering a trade transaction with benefi ciary deduct ............................................................................................................48MT202 Bank transfer to be e# ected via real time system (TARGET) ..............................................................................................................................48MT203 Multiple bank transfer .............................................................................................................................................................................................................................49

Yen examples .....................................................................................................................................................................................................................................................................................................50MT103 Customer transfer – “BEN” ..........................................................................................................................................................................................................................................50MT103 Customer transfer – “SHA” ...................................................................................................................................................................................................................51MT103 Customer transfer – “OUR” ..................................................................................................................................................................................................................51MT200 Bank transfer for own account ..........................................................................................................................................................................................................52MT202 Bank transfer – To cover a treasury transaction ...............................................................................................................................................................52MT202 COV – Bank transfer to cover underlying customer credit transfer ...............................................................................................................53MT202 Bank transfer – To cover a trade transaction with benefi ciary deduct..........................................................................................................53

RMB examples .............................................................................................................................................................................................54O# shore Payments ...................................................................................................................................................................................................... 54Onshore Payments .......................................................................................................................................................................................................55

GlobalPay.FX.RMB .....................................................................................................................................................................................58

Appendix 1 – Codeword list for RMB onshore payments (F72) .......................................................................................................... 59

Appendix 2 – Format requirement payment orders send via CyberPay ........................................................................................60

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IntroductionThis handbook has been prepared to facilitate the processing of your global payments in USD, euros, and yen. It provides you with a general overview of the payment systems and a detailed description of how your payments are processed by Wells Fargo. We have also included a guide that provides samples of recommended payment formats for both SWIFT and CyberPay-initiated payments to help ensure seamless processing of your payments through Wells Fargo.

About Wells Fargo’s payment productsWells Fargo is one of the world’s largest international correspondent banks. We o2 er a full array of services to thousands of correspondent banking customers and corporations around the world. Wells Fargo’s USD and global currency suite of services attests to our commitment to this industry and our ability to meet the dynamic needs of our customers around the world.

Our payment systems enable our customers to concentrate all of their treasury, commercial, retail, and trade transactions with one correspondent bank. This eliminates the need to use multiple banks based upon the currency or geographic proximity of the benefi ciary, as well as the need to send cover payment instructions for each payment request. This process speeds reconcilement, reduces the cost of processing, minimizes funding costs, reduces errors, and makes handling of inquiries easier, since all questions can be directed to one correspondent.

About Wells FargoWells Fargo serves over 70 million customers, o2 ering a comprehensive array of retail, commercial, investment banking, capital management, and wealth management services. Wells Fargo has one of the largest distribution networks in the United States, o2 ering fi nancial services through more than 8,700 stores and some 12,000 automated teller machines (ATMs). Globally, we have a correspondent network spanning 130 countries. Our global presence encompasses 35+ o4 ces, including nine overseas branches. Our international lines of business include: Correspondent Banking, Trade Services, Outsourcing Services, Foreign Exchange, Asset Management, Capital Markets, Structured Trade Finance, and services for Global Multilateral Institutions.

Our global presence

Americas

BogotaBuenos AiresCharlotteGuayaquilLos AngelesMexico CityMiamiNew YorkPhiladelphiaSantiagoSao PauloSan FranciscoWashington, D.C.Winston-Salem

Europe

DublinFrankfurtLondonMadridMilanMoscowParis

Middle East and Africa/India

ChennaiDubaiIstanbulJohannesburgMumbai**New Delhi

Asia Pacifi c

Bangkok*BeijingDhaka*Hanoi*Ho Chi Minh City*Hong KongJakarta*Kuala Lumpur*Manila*SeoulShanghaiSingaporeSydney*TaipeiTokyo

* APAC representative o4 ces** Mumbai Representative O4 ce includes New Delhi and Chennai sub representative o4 ces

2


What’s new in payments: Global Payments Innovation Initiative (GPII)GPII is a Society for Worldwide Interbank Financial Telecommunication (SWIFT)-led initiative that uses the SWIFT network, a multilateral rule book, and Service Level Agreements (SLA) between member banks to deliver a real-time and transparent cross-border payment experience that includes payment tracking and competitive pricing.

The concept, introduced by SWIFT during Sibos 2015 in Singapore, has evolved into an open network of more than 65 SWIFT-member banks, including Wells Fargo, that are collaborating to reinvent correspondent banking; respond to rapidly changing customer needs, regulations, and digital technologies; and drive innovation in cross-border payments.

Through GPII, SWIFT and the member banks are taking the lead in cross-border payments innovation by building upon strengths, including security, resiliency, and compliance, to proactively respond to customer needs to provide greater transparency and predictability in cost and timing. GPII sets a new benchmark in cross-border payments. The initial focus will be on business-to-business (B2B) payments.

Key features that the GPII initiative is trying to address:

• End-to-end real-time processing of payments, with same-day value to the benefi ciary• Transparency and predictability of fees and value• End-to-end payment tracking• Rich payment information transfer

Information on GPII can be found on the SWIFT website: https://swift.com/insights/press-releases/swift-kicks-o# -pilot-for-global-payments-innovation-initiative.

Federal Reserve’s faster payments The topic of faster payments has gained momentum in the U.S. since the Federal Reserve published “Strategies for Improving the U.S. Payment System” in 2013. A cross-industry working group has been developing e2 ectiveness criteria that the U.S. community will use to evaluate proposed faster payments schemes. No mandate exists to implement such a scheme in the U.S. The Federal Reserve created the Faster Payments Task Force “to identify e2 ective approaches for implementing safe, ubiquitous, faster payments capabilities in the United States.”

Desired outcomes

The Task Force’s criteria for assessing alternative faster payment approaches should be consistent with the “desired outcomes” set out in the strategies paper, including:

• Speed: A ubiquitous, safe, faster electronic solution(s) to make a broad variety of business and personal payments, supported by a fl exible and cost-e2 ective means for payment clearing and settlement groups to settle their positions rapidly and with fi nality.

• Security: A U.S. payment system security that remains very strong, with public confi dence that remains high, and protections and incident response that keeps pace with the rapidly evolving and expanding threat environment.

• E4 ciency: A greater proportion of payments originated and received electronically to reduce the average end-to-end (societal) costs of payment transactions and to enable innovative payment services that deliver improved value to consumers and businesses.

• International: Better choices for U.S. consumers and businesses to send and receive convenient, cost-e2 ective, and timely cross-border payments.

• Collaboration: Needed payment system improvements that are collectively identifi ed and embraced by payment participants, with material progress in implementing them.

For additional information on Faster Payments, please visit the FED website at https://fedpaymentsimprovement.org/wp-content/uploads/strategies-improving-us-payment-system.pdf.

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Payments overview — understanding the USD, euro,and yen payment systemsUSDThe USD payment network within the U.S. consists of four primary payment vehicles:

• CHIPS (Clearing House Interbank Payment System)• Fedwire• ACH (Automated Clearing House)• Checks

The following section gives a brief description of each of these payment methods:

CHIPS

CHIPS operates a real-time, private-sector payment system owned by banks. CHIPS was established in 1970 by the New York Clearing House Association (now The Clearing House) as an electronic alternative for high-dollar checks that were used for the movement of funds from one bank to another. CHIPS was created to focus on maximizing processing e4 ciencies, minimizing risk, and allowing participant banks to respond e2 ectively to the ever-changing nature of domestic and international (cross-border) payments.

Wells Fargo is one of the early members of CHIPS. CHIPS is a real-time payment system that uses a patented multilateral netting process to settle payments with minimal use of liquidity. The system continually scans its payment database looking for o2 setting payments between two or more banks. This process ensures that payments are made e4 ciently and rapidly. Payments are considered fi nal and settled when released by CHIPS. Neither daylight nor overnight overdrafts are allowed, eliminating any fi nancial risk to CHIPS or its participants.

Each CHIPS participant is assigned a four-digit CHIPS Participant Number (often referred to as the CHIPS ABA number), which serves as a bank identifi er within CHIPS and in SWIFT messages. In addition, CHIPS participants have the ability to assign a unique Universal Identifi cation Number (UID) for accounts on their books. This six-digit UID is a valuable tool in promoting straight-through processing (STP), since it can be used to uniquely identify bank and corporate customers without the need to provide sensitive account information.

Fedwire

Fedwire is the electronic, large-value payment system managed by the Federal Reserve Bank of the United States. Fedwire is a real-time gross settlement system (RTGS), meaning all transfers occur in real time, and settlement is immediate and fi nal on the remitting and receiving banks’ accounts with the Federal Reserve Bank. Wells Fargo is among the largest Fedwire processing banks. Daylight overdrafts are allowed in this network, but such overdrafts are closely monitored and controlled. A charge is assessed based on the amount of the overdraft per minute.

Every bank in the U.S. that maintains an account with the central bank (The Fed) is assigned an ABA number used to facilitate specifi c business clearing needs, including high-value payments, securities, ACH, checks, etc. Having an ABA number does not necessarily indicate a bank’s eligibility to participate in the high-value payment system known as Fedwire. It is common to have a series of ABA numbers dedicated to support check clearing and ACH, while a separate and distinct ABA is maintained for the purposes of high-value payment (Fedwire). Each ABA consists of nine digits. Wells Fargo kindly asks that you verify that an ABA number is eligible to receive Fedwire payments before making such a request. The link to the Federal Reserve website where you can verify all ABA numbers is the following: http://www.fedwiredirectory.frb.org/search.cfm.

4


Fedwire and CHIPS processing hours

CHIPS and Fedwire provide extended processing hours to support global cross-border payment processing. Operating hours commence at 21:00 ET on the day prior to value date for both systems. The CHIPS processing ends at 17:00 ET for third-party transactions. Third-party Fedwire processing ends one hour later, at 18:00 ET. Although all banks in the U.S. can participate in the extended processing hours, only a few, very large correspondent banks choose to take advantage of the early opening. Wells Fargo is one of the large fi nancial institutions that participate in the entire processing day. Most large fi nancial institutions choose to join the payment networks in early morning U.S. ET (07:00 – 08:00).

What are the implications of the extended Fedwire and CHIPS hours for you?

The extended processing hours in the U.S. complement the working hours in many international markets. The primary driver of extended hours is greater overlap of the U.S. payments systems with overseas markets. In addition to the risk mitigation benefi ts of the extended day, your benefi ciaries will receive earlier posting and notifi cation of the proceeds.

ACH

ACH is a low-cost, low-value (deferred settlement) payment system. It was originally designed as a replacement for the check processing system in the United States. The ACH system links more than 8,000 fi nancial institutions in the U.S., including commercial banks, savings and loan institutions, and credit unions. Oversight responsibility for the ACH network is provided by the National Automated Clearing House Association (NACHA). NACHA sets guidelines and rules for its participating banks. ACH is a paperless, batch-based, store-and-forward payment system. Settlement is accomplished by debiting and crediting the Federal Reserve accounts of participating fi nancial institutions. ACH is used primarily for low-value, non-time-sensitive payments. Most ACH payments take two days to reach the benefi ciary. Examples of ACH payments include pensions, dividends, and direct payroll deposit. Wells Fargo was one of the fi rst banks in the United States to develop and employ an automated interface between SWIFT and ACH using our GlobalPay.File service. Wells Fargo is one of seven banks that have organized its own processing services as an ACH association through the Electronic Payments Network (EPN), formerly known as NYACH. Wells Fargo is one of the largest originators of ACH transactions in the U.S.

ChecksWhile use of checks is the most time-consuming of the various payment methods described, it still remains the most popular form of payment in the United States.

EuroWells Fargo is a direct member of the main euro payment systems, TARGET2 and EBA EURO1, allowing us to ensure that your euro payments are e2 ected quickly and e4 ciently.

The following section gives a brief description of each of these payment methods:

TARGET2

TARGET2 is the Real-Time Gross Settlement (RTGS) system for euro. TARGET stands for Trans-European Automated Real-Time Gross Settlement Express Transfers. TARGET2 is the second generation of TARGET. Payment transactions are settled one-by-one on a continuous basis in Central Bank money with immediate fi nality. There is no upper or lower limit on the value of payments.

With approximately 1,000 direct and 9,000 indirect participants, as well as nearly 43,000 additional addressable banks (including branches and subsidiary institutions), an extremely large number of banks are accessible via TARGET2. TARGET2 is operated by the Eurosystem (the European Central Bank and other EU Central Banks). Being an RTGS system, each payment is processed in real time, and settlement is immediate across the accounts that banks hold with their Central Bank. The system operates using SWIFT and the identifi cation of banks within TARGET2 is through the use of the SWIFT BIC. Wells Fargo Bank, N.A. London Branch is a clearing member of TARGET2 via our SWIFT BIC PNBPGB2L.

5


TARGET2 opens at 07:00 Central European Time (CET) and closes at 17:00 CET for customer payments. An additional hour is available at the end of the day for direct participants to square their positions.

EBA EURO1EBA EURO1 is a same-day payment system run by the Euro Banking Association (EBA). Launched in 1998, EBA EURO1 was developed in order to provide an e4 cient, secure, and cost-e2 ective net settlement infrastructure, but with immediate fi nality for all euro high-value payments processed. Similar to the CHIPS system for USD, EBA EURO performs rolling multilateral netting and settlement throughout the day among its 63 participant banks. Each EBA EURO1 participant only has one single obligation/claim toward the system as a whole. EBA EURO1 is a private-sector-owned system used for domestic and cross-border single payments in euro between banks operating in the European Union. More than 8,000 participant BICs and more than 18,000 additional BICs are reachable via the EURO1/STEP1 participants as listed in the EURO1/STEP1 directory.

EBA EURO1 is a less expensive alternative to TARGET2 since it does not require the same level of liquidity that an RTGS system needs. But similar to TARGET2, it is a SWIFT-based system with banks identifi ed via SWIFT BICs. Although it is a netting system, payments processed via EBA EURO1 are irrevocable and processed with immediate fi nality.

Wells Fargo Bank, N.A. London Branch is a direct participant of EBA EURO1 via SWIFT BIC PNBPGB2L and uses EURO1 extensively to e2 ect Euro payments both to and from the EU/EEA.

EURO1 opens at 07:30 CET and closes at 16:00 CET for payment processing. During the fi nal settlement window, members’ fi nal positions are sent by EBA Clearing to each member. A member with an end-of-day obligation is to pay to EBA EURO1 for its obligation via TARGET2 and a member with an end-of-day claim receives the claim via TARGET2 from EBA EURO1. The service provides a unique RTGS-equivalent multilateral net settlement arrangement, duly approved by the European Central Bank (ECB).

Other Euro systemsThere are other Euro payment systems, which are described briefl y below. Wells Fargo is not a direct member but, where necessary, can access the systems via a partner to provide you with the services you need. Some of the systems are for intra-EU payments only and relate to various regulations and directives of the European Union to have all intra-EU payments treated as domestic rather than cross-border.

STEP1This is e2 ectively the same as EURO1, but members are not able to settle directly. Members of STEP1 have to use a EURO1 member to settle their end-of-day obligations. The membership comprises banks that do not comply with the strict EURO1 admission criteria. On a daily basis, STEP1 processes approximately 20,000 transactions for a total value of more than 1 billion euros.

STEP2This is a pan-European ACH service, run by the EBA Clearing. It is restricted to intra-EU/EEA EURO payments. Wells Fargo is not a member since our business is largely into or out of the EU/EEA, rather than within the eurozone.

SEPA (Single Euro Payments Area)

Specifi cally for Euro payments where the accounts of the originator and benefi ciary are within the EU (and the expanded European Economic Area — EEA and voluntary adopters such as Switzerland), this payment scheme was developed with the intention of replacing all existing national euro ACH systems in Europe. There are several Clearing and Settlement Mechanisms (CSMs) o2 ering banks a service, and this is a further step toward ensuring that payments across Europe can be handled in the same way as domestic (national) transactions. Since this is purely an intra-Europe payment service, Wells Fargo is not a direct member, but has access to the process through a partner in order to provide the service to customers where required.

6


ChecksThere is no pan-European euro check clearing system. Each country has its own national clearing system and, in view of the declared intention to reduce the volume of checks used in Europe, it is unlikely that this will change. Wells Fargo recognizes the need to be able to clear checks across Europe and uses partnership arrangements to be able to o2 er a pan-European check clearing capability.

Japanese yenWells Fargo is pleased to provide our clients with true value-added JPY payment solutions. We are a direct clearing member of BOJNET and FXYCS for JPY clearing.

Foreign Exchange Yen Clearing System (FXYCS)

The Foreign Exchange Yen Clearing System (FXYCS) is used to facilitate the clearing of cross-border yen payments. The Japan Banking Association owns and operates FXYCS where it has delegated the operation of the IT systems to the Bank of Japan, and the processing of instruction takes place in the BOJ-NET system. FXYCS handles yen payments resulting from foreign exchange transactions, yen denominated bond transactions, transactions in the EUROYEN market as well as cross-border payments. The system is also used to handle Continuous Linked Settlements (CLS) payments in yen.

Wells Fargo is a direct participant of FXYCS. The cut-o2 times for clearing the commercial payments are set to 13:30 Japan Time (JT), which is 30 minutes before the closure of the FXYCS system.

Bank of Japan Financial Network System (BOJ-NET)

The BOJ-NET is a Real-Time Gross Settlement System managed and operated by the Bank of Japan. The primary activity of BOJ-NET is the settlement of inter-bank money market transactions, securities transactions, and fund transfers between fi nancial institutions across their accounts with BOJ.

Wells Fargo is a participant in the BOJ-NET. The operating hours of the systems are from 09:00 Japan time (JT) to 17:00 (JT) for all participants.

Other Japanese yen systemsThere are two other systems used for e2 ecting payments and clearing checks:

Zengin system

Zengin is an interbank clearing system for domestic funds transfer, which is operated by Tokyo Bankers Association. The system can support single and bulk payments such as the payment of wages, pensions, dividends and tax refunds, and payments resulting from the inter-regional collection of bills and checks. Wells Fargo does not handle the domestic funds transfer for yen.

Bill and Check Clearing System (BCCS)Bills (Promissory Notes, Bills of Exchange) are widely used for commercial transactions between business enterprises. Checks are mainly used for corporate payments in Japan. The Tokyo Clearing House handles the bills that have reached the payment dates and checks are brought to the local clearing house where they are exchanged and settled between banks.

7


Chinese Renminbi (RMB) Real Time Gross Settlement (RTGS) SystemWells Fargo is a direct clearing member of RMB RTGS in Hong Kong, enabling the provision of onshore and o2 shore Chinese renminbi clearing solutions to you.

Hong Kong Clearing

There are four currencies (described below) that can be cleared through Hong Kong. Wells Fargo participates as a direct participant for the RMB clearing.

1. Hong Kong Dollar (HKD) for which the Hong Kong Monetary Authority (HKMA) provides settlement of the currency. Processing is provided through the Hong Kong Interbank Clearing Limited.

2. USD Clearing is built on the same infrastructure as and operated in the same manner as the HKD clearing system. It was launched on August 21, 2000, to provide USD RTGS. The USD Settlement Institution (SI), HSBC, is a commercial bank and USD transactions are settled across the books of the USD SI.

3. EUR Clearing – Euro clearing was introduced in 2003 and provides euro RTGS and operates like the USD Clearing. HKMA appointed Standard Chartered Hong Kong Ltd as the SI for the Euro Clearing System in Hong Kong.

4. RMB RTGS System – The ability to settle RMB in Hong Kong is a result of the appointment of Bank of China (Hong Kong) (BOCHK) by the Peoples Bank of China (China’s Central Bank) as the settlement institution for RMB. The Clearing Bank, BOCHK, maintains a settlement account with the People’s Bank of China and is a member of China’s National Advanced Payment System (CNAPS) to clear cross-border payments in/out of mainland China. RMB RTGS System, referred to as the RMB Clearing House Automated Transfer System (RMB CHATS) in Hong Kong, can be regarded as a technical extension of CNAPS in mainland China, governed by Hong Kong laws. In addition to the linkage to CNAPS, the RMB CHATS system is also linked to the Shenzhen Financial Settlement System (SZFSS) for RMB cross-border payments between Hong Kong and mainland China. The payment system allows the processing of RMB interbank payments, bulk clearing and settlement of payment items on a multilateral netting basis, and settlement of Payment versus Payment (PvP) and Delivery versus Payment (DvP) via links with other local RTGS systems in Hong Kong. This is similar to the Hong Kong dollar RTGS system. The RMB CHATS therefore facilitates both settlement of onshore (mainland China) and o2 shore transactions.

Cut-O# Times

RMB CHATS operates from 08:30 Hong Kong Time (HKT) to 23:30 HKT while CNAPS operates from 09:00 HKT to 16:30 HKT.

China National Advanced Payment System

Overview

The Peoples Bank of China (PBoC) has developed several interbank payment systems, which include the three systems below. These three systems are the primary applications systems of the China National Advanced Payment Systems (CNAPS). CNAPS supports the message exchange and settlement of transactions in cross-border RMB payments. The CNAPS system is available from CNAPS, and operates from 09:00 HKT to 16:30 HKT.

High Value Payment System (HVPS) has been in operation since 2005 and mainly handles inter-city and local credit transfers above a given value threshold as well as low value transfers. Payment instructions are sent in real time and cleared transaction by transaction. The HVPS settles cross-border payments between China, Hong Kong, and Macao. The system is available from 08:30 to 17:00 and only operates on business days.

Bulk Payment System (BEPS) deals primarily with local and non-local paper-based debit payments as well as low-value credit transfers below a pre-determined value. The system sends payment instructions in bulk, nets in real time, and settles at regular times.

Internet Banking Payment System (IBPS) was established nationally in 2010, and handles interbank retail payment transactions initiated via internet, enabling customers to submit online payments and obtain results in real time. These are typically debit and credit transactions initiated by commercial banks.

8


Wells Fargo is not a direct member of CNAPS and has access to CNAPS through RMB CHATS participation, which enables the settlement of transactions destined for mainland China benefi ciaries.

U.S. government regulations on the processing of your paymentsBecause Wells Fargo is a U.S. bank, we are bound by all U.S. government regulations irrespective of where we process transactions. The following information is therefore relevant to all your business with Wells Fargo, whether processed in the United States, Taipei, Hong Kong, London, or Tokyo.

O$ ce of Foreign Assets Control (OFAC)Sanction programs are divided into three general categories: list-based sanctions programs, comprehensive sanctions, and partial sanctions. Specifi c programs currently include,* but are not limited to:

Comprehensive sanctions Partial sanctions List-based

Cuba Sectoral Sanctions (Russia) Yemen

Burma (Myanmar)

Sudan (excludes Republic of

South Sudan)

Iraq

Libya

Iran The Balkans

North Korea

Syria Liberia (former regime of Charles Taylor)

Belarus

Crimea region of Ukraine Zimbabwe

Cote D’Ivoire (Ivory Coast)

Democratic Republic of Congo

Somalia

Lebanon

Yemen

South Sudan

Central African Republic

Venezuela

Other list-based sanctions

programs

• Counter Narcotics Tra# cking

• Transnational Criminal Organizations

• Counter Terrorism Sanctions

• Specially Designated Nationals

• Non-Proliferation Sanctions

• Rough Diamond Trade Controls

• Magnitsky Sanctions

• Malicious Cyber Activities

* Sanctions information in this table is subject to change

Comprehensive sanctions are broad sanctions programs that generally prohibit most activities involving the country, parties owned/controlled by the governments of the list country, as well as parties within the country. List-based programs generally prohibit all activities with named parties and entities owned or controlled by one or more of those parties. In order to comply with these regulations, we have an obligation to review and evaluate transactions, which may involve these sanctioned countries, individuals, and entities. If it is determined that an account or transaction involves a prohibited country, individual, or entity, we are required to take certain actions, which may include blocking accounts and funds associated with transactions or, in certain cases, rejecting a proposed transaction.

Additional information involving these programs can be found on OFAC’s website at www.treasury.gov/ofac.

In order to comply with these regulations, Wells Fargo employs sophisticated software that automatically scans all payments for countries, entities, or individuals that appear on OFAC’s sanctions list. If the payment scan results in identifying a transaction that may be related to a sanctioned country or entity, the payment must be stopped and reviewed. We may ask you for additional information to clarify the parties involved in a transaction.

9


We strongly encourage your prompt cooperation in the event your bank receives such an inquiry; this will help to prevent delays in processing your transactions. If a sanctioned party is indeed involved in the transaction, Wells Fargo is required to either block the funds or reject the transactions and report the information to OFAC. Blocked funds can only be released with the authorization of OFAC. While Wells Fargo values its customers and recognizes the importance of expedient processing, if we are required under regulation to block a payment, there is nothing that Wells Fargo or any U.S. bank can do until approval for its release is received from the U.S. Treasury Department.

Additionally, this software provides the ability for local regulation sanction lists scanning, e.g., HM Treasury, United Nations (UN), European Union (EU), Government of Japan (GOJ), and Hong Kong Monetary Authority (HKMA).

The regulatory authority under which a transaction is subject decides which lists will be scanned. This ensures Wells Fargo’s adherence to local regulatory authorities, given our various processing locations throughout the world.

Information Reporting and Bank Secrecy ActThe Information Reporting and Bank Secrecy Act of 1970 (BSA) is one of the fundamental federal regulations addressing money laundering. The BSA requires banks and other fi nancial institutions to report certain transactions to government agencies. A component of the BSA called “The Travel Rule” requires fi nancial institutions to pass all relevant information (reference, originating bank, originating party, remitter, benefi ciary, benefi ciary’s banker, and pay-through banks’ reference) to the next party in the transaction.

Financial institutions are also required to report suspicious transactions. Additionally, several amendments to the BSA establish the laundering of proceeds from illegal activities as a criminal o2 ense and require fi nancial institutions to build internal infrastructure with certain required components aimed at prevention, detection, and reporting of suspicious activity through adequate know-your-customer and anti-money-laundering programs and monitoring.

USA PATRIOT ActThe Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act) of 2001 was largely designed to provide law enforcement with additional investigative tools. Title III of this Act, itself titled, “The International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001,” includes certain provisions intended to aid in the prevention, detection, and prosecution of international money laundering and terrorist fi nancing activities. Primary requirements of the Act include, but are not limited to, the development of comprehensive, risk-focused compliance programs, including enhanced requirements for higher risk customers, the certifi cation of foreign banks with correspondent accounts, and the prohibition of accounts for certain foreign shell banks. A signifi cant distinguishing feature of this Act is that it extends legislative and regulatory requirements for anti-money laundering and counter terrorist prevention from banks to nonbank fi nancial institutions.

Dodd-Frank 1073Section 1073 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank 1073) is designed to protect U.S. consumers by providing full transparency to the international payment process and spurring price reduction through competition. It amends the Electronic Funds Transfer Act and Regulation E (U.S. federal law), e2 ectively replacing UCC4A as the law governing U.S. consumer originated international payments.

Dodd-Frank 1073 only applies to international payments originated by a natural person from an account at a Remittance Transfer Provider (e.g., U.S. banks or other fi nancial institutions) located in the United States. It does not apply to payments originated by corporates or other non-consumers.

The international payment can be to any type of benefi ciary (natural person, corporate entity, government, etc.) located outside the United States. Dodd-Frank 1073 mandates that the Remittance Transfer Provider give the U.S. consumer certain pre-payment and receipt disclosures related to payment costs, payment timing, cancellation, and error resolution rights. Regulated by the Consumer Financial Protection Bureau, the compliance is mandatory, e2 ective October 28, 2013.

Please contact your Wells Fargo representative for further details.

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How your payments are processed by Wells FargoWhen a correctly formatted USD SWIFT or CyberPay payment message is received by Wells Fargo, it is automatically processed and one or more of the following payment types will result, depending on the benefi ciary bank:

– Book transfer (for payment to or through an account at Wells Fargo) – CHIPS payment – Fedwire payment – Check issuance – ACH payment

The preferred method of settlement for commercial payments is through book transfers. We encourage the use of the serial payment method. By sending a single SWIFT payment message to Wells Fargo, we e2 ect the payment in the most e4 cient manner and provide all required payment orders and/or advices to the benefi ciary bank and/or intermediary bank automatically. There is no need for you to send multiple SWIFT messages to other banks.

Wells Fargo maintains one of the most extensive networks of direct correspondent bank relationships in the industry, enabling your payments to be delivered faster and without reliance on additional intermediate banks.

Payment instructions that are initiated in the incorrectly formatted SWIFT standards are routed to various processing queues for repair and review. Our experienced processing sta2 will quickly determine how to repair the message in order to e2 ect the payment in the most e4 cient manner. Their goal is to complete the payment and to release it the same day it is received, based on the information provided. To aid them in doing so, they have access to extensive databases that help determine the most expeditious routing of your payments.

There will be circumstances when a payment cannot be e2 ected because of insu4 cient or incorrect information. The benefi ciary bank might be unable to apply the payment due to reasons such as wrong account number, wrong benefi ciary name, etc. When our customer service representatives receive these cases, they act quickly, often in conjunction with our local representative in your market, to notify you of the reason why the payment could not be e2 ected. Each inquiry processed by the customer service representative is assigned a case tracking number with a history of all related messages attached. Our advanced investigation system aids us greatly in the rapid resolution of such cases.

Wells Fargo strongly recommends that your fi nancial institution adheres to FATF recommendation 16 with respect to ensuring complete originator and benefi ciary information. This can greatly improve timely delivery of payments by allowing our sta2 to correctly determine false hits on our scanning engine.

The excellence of our customer service characterizes Wells Fargo’s commitment to the payments business. In addition to centralized customer service units, each one of our international o4 ces also maintains local customer service sta2 with online, real-time access to payments systems globally. They are able to access information locally to provide you with all details of your outbound and incoming payments. Additionally, Wells Fargo o2 ers a browser-based internet tool, CyberInquirySM, which allows you to see your transactions online, and as well to initiate inquiries.

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Wells Fargo’s payment productsThe following is a brief description of Wells Fargo’s payment products. For more information on these products, please contact your local relationship manager or regional product specialist.

USD payment productsCommercial payments

GlobalPay.USD:

These USD payments, initiated through SWIFT MT103 or Wells Fargo’s CyberPay system, are defi ned as those transactions in which at least one party is a non-fi nancial institution (e.g., commercial, retail, or corporate payment, or an open account trade transaction). GlobalPay.USD payments are settled serially to the next party in the payment chain across Wells Fargo’s books, via CHIPS, Fedwire, or check. The service supports BEN/SHA and OUR charges, which can be deducted from the proceeds or charged to your account.

GlobalPay.Intraday:

GlobalPay.Intraday helps bridge time zone di2 erences and ensures that benefi ciary banks around the world receive full payment details during their business day. The service is available for transactions in which at least one party is a non-fi nancial institution. You send a single commercial payment instruction to Wells Fargo. On the value date, beginning at 21:00 ET for next day’s value, we will send an MT103 directly to the benefi ciary bank. When the benefi ciary bank does not have a direct relationship with Wells Fargo, we will settle covering funds through its correspondent via CHIPS or Fedwire.

GlobalPay.PreAdvice:

This service allows you to provide advance notifi cation of full payment details up to fi ve days before the value date to the benefi ciary bank. GlobalPay.Preadvice is available for transactions in which at least one party is a non-fi nancial institution. You send a single forward-valued commercial payment instruction to Wells Fargo. Up to fi ve days before the value date, we will send an MT103 directly to the benefi ciary bank. On the value date, Wells Fargo will complete the transaction by providing the cover funding through a book transfer, CHIPS, or Fedwire payment.

CyberFile.Transfer:

This service is a high-volume, batch-based solution that enables you to batch USD and FX high-value payments and transmit a single batch of payments to Wells Fargo. This is an extremely fl exible service that supports standard MT103, MT202, and MT200 payments, or custom fi le formats. This service is also able to support multiple communication options, including SWIFT FileAct and Wells Fargo’s proprietary Data Transmission Services.

GlobalPay.File: Bulk File Delivery

This service is designed for your high-volume, low-value payments made to benefi ciaries on a recurring basis (e.g., dividend, payroll, or pension payments). GlobalPay.File allows you to bulk individual third-party payments to reduce costs and aid in reconciliation. You simply transmit an MT102 fi le format of payments to Wells Fargo utilizing SWIFT FileAct or SWIFT FIN. Payments sent by this service are e2 ected via CHIPS, Fedwire, book transfer, ACH (U.S.), or check.

GlobalPay.FX:

This service is designed to enable the processing of payments in currencies other than USD from your USD account with Wells Fargo. You need not maintain numerous nostro accounts to make foreign currency payments, saving you time and expenses. Simply direct these payments in foreign currency to Wells Fargo. We are able to convert them at competitive market rates and can pay in most major currencies. Please contact your local Wells Fargo relationship manager or local customer service manager to obtain a list of available currencies.

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GlobalPay.FXIQ:

GlobalPay.FXIQ is a value-added service available for your cross-border USD payment fl ow. Based upon defi ned system rules customized to your unique transaction and client requirements, Wells Fargo can determine if any USD payment orders you send to us could be converted and paid in the benefi ciary’s local currency. For payments eligible for conversion, Wells Fargo will apply an exchange rate marked up by a pre-agreed upon spread and execute the payment in local currency through our global clearing network. GlobalPay.FXIQ can maximize the foreign exchange revenue potential of your USD international payments, while optimizing your customer’s experience.

Principal Preservation

GlobalPay.PayProtect:

Wells Fargo’s GlobalPay.PayProtect solution is an e4 cient and cost-e2 ective alternative to traditional principal preservation services such as OneDeduct and NoDeduct. PayProtect addresses the need for principal preservation while eliminating costly OUR claims by allowing non-deduction fee arrangements between the benefi ciary and its bank to remain in place.

GlobalPay.NoDeduct:

GlobalPay.NoDeduct enables you to instruct that no fees should be assessed to the benefi ciary by any bank in the payment chain. The service is available for transactions in which at least one party is a non-fi nancial institution. Wells Fargo charges an all-inclusive fee for each transaction to cover claims for fees from downstream banks. The benefi ciary bank and any intermediary bank fees can be claimed back to Wells Fargo by means of a SWIFT MT191. This service requires subscription.

GlobalPay.OneDeduct:

This service allows you to instruct that only Wells Fargo’s processing fees should be assessed to the benefi ciary. Wells Fargo will take a single deduction from the payment and instruct that no further charges should be assessed to the benefi ciary. The service is available for transactions in which at least one party is a non-fi nancial institution. The Wells Fargo deduction is an all-inclusive fee to cover claims for fees from downstream banks. The benefi ciary bank and any other intermediary bank fees can be claimed back to Wells Fargo by means of a SWIFT MT191. This service requires subscription.

Treasury payments

TreasuryPay.USD:

This service is designed to assist you with the control and movement of high-volume, large-value, bank-to-bank related USD wire payments. Often, these relate to the settlement of foreign exchange transactions and investment placement and returns, as well as bank-to-bank commercial payments. Wells Fargo provides reliable and timely processing of these large payments. Your payments are backed by the fi nancial strength of Wells Fargo, one of the best capitalized banks in the U.S.

Trade payments

Trade.Export Collect:

This service is used with export letters of credit or documentary collections denominated in USD. This service provides the ability for customers to appoint Wells Fargo as your agent for delivery of export documents and reimbursement claims to the paying banks, tracing payment or acceptance, and receipt of funds on their behalf.

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TradePay.202 Deduct: Our TradePay.202 Deduct service allows you to instruct that fees for your trade-related payments are for the account of the benefi ciary and should be deducted from principal. You need only add a special codeword: /REC/BEN/ in fi eld 72 of outbound SWIFT MT202s. Our system will automatically read the codeword and deduct the fee from the proceeds prior to e2 ecting the payment. In addition to codewords, our system is able to scan fi elds 20, 21, and 72 of the SWIFT MT202 to detect your predefi ned reference patterns. Simply provide these reference patterns to Wells Fargo during implementation of the service and we will deduct a fee when your reference patterns are found in the payment order. Other codewords available are: /REC/BEN/, /REC//BEN/, /REC/ BEN /, /CHGBEN/, /PR/, /CHARGE/BEN/, /DEDUCT/, /DFP/, /CHG/BEN/, and /RECBEN/.

TradePay.740:

This service allows customers to nominate Wells Fargo, as the reimbursing bank under you, to import their letters of credit, denominated in USD, and to instruct Wells Fargo to honor claims from negotiating banks on their behalf.

Euro payment productsCommercial payments

GlobalPay.Euro:

These Euro payments, initiated by SWIFT MT103 or CyberPay, are defi ned as those transactions in which at least one party is a non-fi nancial institution (e.g., open account trade transaction, retail, or commercial payment).

This service supports BEN/SHA and OUR charges for which the transaction charge can be deducted from the principal or charged to your account via monthly account analysis respectively.

GlobalPay.EuroOut:

This service is designed especially for European banks wishing to e2 ect euro payments in favor of benefi ciaries outside Europe. There is no need to fund an account as payment instructions can be sent to Wells Fargo via the euro payment systems EBA, Euro1, or TARGET2. Wells Fargo will use its comprehensive databases to identify the euro correspondent of the benefi ciary bank and will even convert and pay in another currency if the benefi ciary banks cannot accept euro. All of the normal charging options are available.

Treasury payments

TreasuryPay.Euro:

This is designed for the high-value euro transfers related to treasury activities, such as foreign exchange, money market transactions, and other interbank payments, where no fee deduction is required. Initiation by SWIFT is through the MT2xx series of messages (MT200/1/2/3). In CyberPay, the bank transfer screens are used.

Trade payments

TradePay.Euro 202Deduct:

This service is particularly useful to capture charges for your euro trade payments, such as LC-related remittances, where charges are for the account of the benefi ciary. You only need to add a special codeword, /REC/BEN/, in fi eld 72 of the outbound SWIFT MT202. Our systems will automatically read this codeword and deduct the fee from the proceeds before e2 ecting the payment. In addition to codewords, our system is able to scan fi elds 20, 21, and 72 of the SWIFT MT202 to detect your predefi ned reference patterns. Simply provide these reference patterns to Wells Fargo before implementing the service, and we will deduct a fee when your reference patterns are found in the payment order. Other codewords available are: /CHG/BEN/, /RECBEN/, /DEDUCT/, /DFP/, and /DEDUCT//REC/.

14


TradeEuro.Export Collect:

This is used with export letters of credit or documentary collections denominated in euro. This service provides the ability for you to appoint Wells Fargo as your agent for reimbursement claims to the paying bank, tracing of payment of acceptance, and receipt of funds on their behalf.

TradePay.Euro 740:

This service enables you to instruct Wells Fargo, as the reimbursing bank under you, to import letters of credit, denominated in euro, and to instruct Wells Fargo to honor claims from negotiating banks on their behalf.

Yen payment productsCommercial payments

GlobalPay.Yen:

This service allows you to initiate commercial payments in favor of your benefi ciaries in Japan. Wells Fargo is a direct member of the Foreign Exchange Yen Clearing System (FXYCS), which ensures your payments are remitted directly to benefi ciary banks. On receipt of your MT103 payment instruction, our Tokyo Branch (BIC: PNBPJPJX) in favor of the benefi ciary, the transaction is transferred to the benefi ciary’s bank. Forward value payments can be warehoused (i.e., up to 10 days) until the value date and the transaction is processed via book transfer or FXYCS.

Funds received from your counterparties will be automatically credited to your account in real-time with intraday information available in CyberInquiry or CyberBank Reporting sysems. Wells Fargo o2 ers a NODEDUCT service option in addition to normal charging options of OUR, SHA, and BEN. Wells Fargo provides competitive cut-o2 times for same-day value payment instructions.

Treasury payments

TreasuryPay.Yen:

This service allows you to make JPY denominated treasury related payments worldwide. Customers can instruct remittance of funds via an MT200, MT201, MT202, or MT203 payment instruction to Wells Fargo’s Tokyo Branch (BIC: PNBPJPJX) in favor of their benefi ciaries. Payments are e2 ected through FXYCS ensuring your counterparties receive funds in a timely manner. Forward dated payment instructions can be warehoused (i.e., up to 10 days) until the value date and then processed via book transfer or FXYCS.

Funds received from your counterparties will be credited automatically into your account, with information available via SWIFT, CyberInquiry, or CyberBank Reporting systems.

Trade payments

TradePay.Yen 202Deduct:

This service allows a fee deduction from the proceeds of your MT202 trade payments. The automatic deduction of these fees reduce your settlement cost for trade transactions and provides you with additional revenue opportunities.

In partnership with you, a pre-agreed codeword is selected for us in fi eld 72 of the MT202 message (i.e., /REC/BEN) which automatically initiates a fee deduction from the benefi ciary’s proceeds. Payment fl ow is straight through and with minimal intervention. Client fee credits can be arranged for this service.

Incoming Fee Deduct:

The service is available for trade receipts (MT202). You may choose to provide Wells Fargo with your reference patterns that normally appear in fi elds 20, 21, or 72 of the received payment message. Our advanced payment system will scan received MT202 messages for these reference numbers and deduct a fee when credits with these reference numbers occur before crediting your account.

The automatic deduction of these fees at an amount that can be set by you reduces your cost. Client fee credits are available on request for this service.

15


RMB productsCommercial & Treasury payments

GlobalPay.RMB:

This service supports RMB payments and allows fi nancial institutions to open RMB accounts with Wells Fargo Bank, N.A. London Branch, which is a direct participant in the RMB CHATS clearing in Hong Kong. Onshore payments will be routed through China’s National Payment System (CNAPS) in mainland China while o2 shore payments will be settled through RMB CHATS Real Time Gross Settlement System.

O# shore Hong Kong Transaction

Commercial Payments – O# shore

This service facilitates the initiation of payments destined for Hong Kong. There are no restrictions for the receipt of o2 shore Chinese renminbi where the benefi ciary resides in Hong Kong. Additionally, no codeword is required for these transactions, which are settled at the RMB CHATS clearing. The payments may contain the charge codes OUR BEN or SHA.

MT202 transactions

As a direct member of RMB CHATS, the ability to settle MT200 series transactions enhances the service provided to our customers. Transactions that include trade and FX can be settled in Hong Kong without codewords. These transactions are considered fi nal on settlement.

Onshore China Transactions

Commercial payments

The ability to settle onshore RMB is available through the service o2 ered by Wells Fargo. These transactions are settled via RMB CHATS to the People’s Bank of China (PBOC) and then to the ultimate benefi ciary bank. All payments destined for China require a codeword in the SWIFT message. Additionally, these transactions cannot have the charge code BEN in the message.

MT202 payments

Payments for settlement in China all require codewords to describe the payment type. Some transactions such as Capital transfers and bonds require pre-approval from the PBOC.

GlobalPay.FX RMB:

Wells Fargo can also support your renminbi (CNY) onshore payments. Special requirements must be followed prior to sending CNY payments to Wells Fargo:

You must agree with Wells Fargo to be a user of this service, accept the terms of the applicable Service Description, and sign the Acknowledgment Letter.

Payments must be related to cross-border goods trade or service trade.

Benefi ciary bank must be located in mainland China.

Benefi ciary must be commercial entity and permitted to receive cross-border payments denominated in CNY in accordance with PBOC regulations. CNY payments to individual persons in China are not permissible using GlobalPay.FX.

Underlying trade documentation (e.g., invoice) must be denominated in CNY and can be required by PBOC from the remitter.

Daily rate sheets are not available for CNY. Clients must call Wells Fargo’s FX trading desk for exchange rate and contract number prior to sending a CNY payment.

16


Field 72 must contain:

Authorization to debit your USD account with Wells Fargo

Exchange Rate

Payment Purpose Codewords:

/PYTR/GOD/ Cross Border Goods Trade

/PYTR/GOD/ Cross Border Service Trade

Wells Fargo FX contract number

Payment orders sent via SWIFT MT103

Field 32: Must stipulate the amount of payment in CNY

Field 57: Benefi ciary bank must be located in mainland China

Line 1: ‘/CN’ followed by CNAPS identifi er or; SWIFT BIC (if the benefi ciary bank is a branch of Bank of China)

Line 2: SWIFT BIC (if Bank of China branch)

Field 59: Benefi ciary’s address must be located in mainland China

Account number, full name, and address must be provided (name or address must not be truncated)

Benefi ciary must be a commercial entity, not an individual person

Field 72: Must indicate the following information:

• Authorization to debit correspondent’s USD account

• Codeword required by Wells Fargo for trade notifi cation: /PSET/CN/TR (codeword should not appear in the fi rst line of fi eld 72, should fi t on one line, and should not be truncated)

• Wells Fargo FX contract number, following the codeword Please refer to example of CNY MT103 payment order below:

Field Description Contents

:20: Transaction Reference Number TRN29863

:23B: Bank Operation Code CRED

:32A: Value/Currency Code/Amount 120630CNY125000,00

:50K: Ordering Customer

/52418

Harold Ping

123 Valley Avenue

Taipei, Taiwan

:57A: Account with Institution /CNXXXXXXXXXXXX

:59: Bene% ciary

/123456789

Shanghai Export Ltd.

199 Grand Avenue

Beijing, China

17


:70: Remittance Information Consulting Fee Invoice No. XX

:71A: Details of Charges BEN

:72: Sender to Receiver Information

/REC/PLEASE DEBIT OUR USD

//ACCOUNT AT RATE: XXXX

//CONTRACT 1234567


Field 32: Must stipulate the amount of payment in CNY

Field 57 or 58: Benefi ciary bank must be located in mainland China

Line 1: ‘/CN’ followed by CNAPS identifi er or; SWIFT BIC (if the benefi ciary bank is a branch of Bank of China)

Line 2: SWIFT BIC (if Bank of China branch)

Field 72: Must indicate the following information:

• Codeword for fee deduction

One of the Wells Fargo’s codewords should be placed to enable a fee deduction, e.g., /REC/BEN/

If correspondent uses its trade reference patterns option for fee deduction, those reference numbers must appear in fi eld 20 of MT202 message and will be scanned against the correspondent’s profi le, enabling deduction of fee

• Authorization to debit correspondent’s USD account

• Codeword required by Wells Fargo for trade notifi cation (codeword should not appear in the fi rst line of fi eld 72, should fi t on one line, and should not be truncated)

• Wells Fargo FX contract number, following the codeword



:21: Related Reference LC123456

:32A: Value/Currency Code/Amount 150901CNY125000,00

:58A: Bene% ciary Institution ABCDBANK (SWIFT BIC)


/REC/BEN/PLEASE DEBIT OUR USD

//ACCOUNT AT RATE: XXXX

//CONTRACT 1234567

18


USD Payment Reference Guide

Wells Fargo incoming routing instructions

Wells Fargo Bank, N.A. – New YorkSWIFT BIC: PNBPUS3NNYCCHIPS Participant Number: 0509FED ABA Routing Number: 026005092

CHIPS Participant Routing Numbers

CHIPS Routing Number Bank name SWIFT BIC FED ABA

1488 Agricultural Bank of China ABOCUS33 026014889

0184 Banco Bilbao Vizcaya, S.A. BBVAUS33 026001847

0355 Banco do Brasil S.A. BRASUS33 026003557

0869 Bangkok Bank Public Company Limited BKKBUS33 026008691

0886 Bank Hapoalim B.M. POALUS33 026008866

0279 Bank Leumi USA LUMIUS3N 026002794

0959 Bank of America, N.A. BOFAUS3N 026009593

0326 Bank of China BKCHUS33 026003269

1262 Bank of Communications COMMUS33 026012629

0253 Bank of Nova Scotia NOSCUS33 026002532

0963 Bank of Tokyo-Mitsubishi UFJ, Ltd. BOTKUS33 026009632

0257 Barclays Bank PLC BARCUS33 026002574

0768 BNP Paribas New York BNPAUS3N 026007689

0160 Branch Banking and Trust Company BRBTUS33 053201607

0480 Brown Brothers Harriman & Co. BBHCUS33 026004802

0600 China Citic Bank Int’l LTD. KWHKUS33 026006004

1468 China Construction Bank Corporation PCBCUS33 026014685

1455 China Merchants Bank CMBCUS33 026014559

0008 Citibank, N.A. CITIUS33 021000089

0804 Commerzbank AG COBAUS3X 026008044

0807 Credit Agricole Corporation and Investment Bank CRLSUS33 026008073

0865 Credit Industriel et Commercial CMCIUS33 026008659

0378 Deutsche Bank AG DEUTUS33 026003780

0103 Deutsche Bank Trust Co Americas BKTRUS33 021001033

0031 Fifth Third Bank FTBCUS3C 042000314

0736 Habib American Bank HANYUS33 026007362

0780 Habib Bank Limited HABBUS33 026007809

0108 HSBC Bank USA MRMDUS33 021001088

1459 Industrial and Commercial Bank of China ICBKUS33 026014591

0531 Intesa Sanpaolo S.p.A. BCITUS33 026005319

0976 Israel Discount Bank of New York IDBYUS33 026009768

0002 JPMorgan Chase Bank, N.A. CHASUS33 021000021

0824 KBC Bank N.V. KREDUS33 026008248

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CHIPS Routing Number Bank name SWIFT BIC FED ABA

0555 Manufacturers and Traders Trust Company MANTUS33 022000046

0174 Mashreqbank psc MSHQUS33 026011743

0908 Mega Int’l Commercial Bank Co. ICBCUS33 026009085

0430 Mizuho Bank, Ltd. – NY MHCBUS33 026004307

0958 Royal Bank of Scotland PLC CTZIUS33 026009580

0422 Societe Generale SOGEUS33 026004226

0256 Standard Chartered Bank SCBLUS33 026002561

0914 State Bank of India SBINUS33 026009140

0487 State Street Bank and Trust Company SBOSUS3N 026009166

0967 Sumitomo Mitsui Banking Corporation SMBCUS33 026009674

0001 The Bank of New York Mellon IRVTUS3N 021000018

0217 The National Bank of Kuwait SAK NBOKUS33 026000217

0112 The Northern Trust Company CNORUS44 026001122

0799 UBS AG UBSWUS33PID 026007993

0049 Union Bank, N.A. BOFCUS33MPK 122000496

0509 Wells Fargo Bank NY INTL. PNBPUS3NNYC 026005092

0407 Wells Fargo Bank, San Francisco WFBIUS6S 121000248

Payment Instructions Receipt Cut-o! Times by Delivery Channel Clearing Cut-off Times

USDSWIFT, Wells Fargo Cyber and Data

Transmission ServicesFedwire and CHIPS Origination** Book CHIPS Fedwire

STP 17:45* CHIPS:16:45* FED:17:45* 18:30 17:00 18:00

Non-STP 17:30* CHIPS:16:30* FED:17:30* 18:30 17:00 18:00

* Instructions received after the cut-o! times above will be processed on a commercially reasonable best-e! orts basis.

** Formerly known as GlobalPay.Fed and GlobalPay.Chip.

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Federal Reserve Bank – Funds Transfer Routing Number search

The below link can be utilized to determine if a Fed ABA routing number is eligible for funds transfer.*https://www.frbservices.org/EPaymentsDirectory/agreement.html

* Financial institutions maintain ABAs that are used for ACH transfers; ACH ABAs should never be used to identify a fi nancial institution in a funds transfer.

SWIFT – Search

The below link can be utilized to determine if a SWIFT BIC on-line is eligible for funds transfer.http://www.swift.com/bsl/index.faces?bicSearch

New York Clearing House – Participant List

The below link can be utilized to look up a CHIPS Participant Number or CHIPS UID number.https://www.theclearinghouse.org/payments/chips

Fedwire and CHIPS formatting guide

Principles for straight-through processing of CHIPS and Fedwire payments

1. It is not necessary to provide the intermediary bank unless the remitter has specifi cally instructed you to do so. If one is not provided, we will utilize over payment reference tools to determine the intermediary bank to complete the payment.

2. Always place each party in its designated CHIPS or FED fi eld and always precede the party identifi er with its correct identifi er code. The SWIFT BIC is the preferred means of identifi cation.

3. Should you need to populate the Intermediary Bank fi eld, please ensure that you are not repeating the information contained in the Benefi ciary Bank fi eld.

4. Never abbreviate a bank name. It could potentially stop a payment from being completed and advised.

5. Obtain and provide, in the payment instructions, the maximum possible amount of information from the originator.

The most complete source of information will always be the originator. Some examples are:• Full name and address of originator and benefi ciary, including country (it is not recommended to use a PO Box)• Date of birth of any foreign national• Benefi ciary national ID number or passport number• Purpose of payment• IMO (International Maritime Organization) ship identifi cation number and fl ag from vessel

21


CHIPS format:

Field tag # Field name Content Comment

260 Amount USD amountAmount applied before deduction,

if applicable

201 Sender FI Sender CHIPS number (4 characters)

320 Sender Reference 16 characters

211 Receiver FI 0509 Wells Fargo’s dedicated CHIPS number

400 Intermediary FI Intermediary’s identi% er Optional. Wells Fargo identi% es

all required intermediaries

412 Bene% ciary’s FISWIFT BIC for bene% ciary’s bank, name,

and address or CHIPS UID number

Name and address also acceptable if

SWIFT BIC or CHIPS UID is not available

422 Bene% ciary InformationBene% ciary’s account identi% er,

name, and address

502 Originator InformationOriginator’s identi% er (e.g., account

number), name, and address

650 FI to FI Information

Fedwire format:

Field tag # Field name Content Comment

2000 Amount USD amountAmount applied before deduction,

if applicable

3100 Sender FISender ABA number (9 characters)

Sender short name (18 characters)

3320 Sender Reference 16 characters

3400 Receiver FI 026005092 Wells Fargo’s dedicated ABA number

4000 Intermediary FI Intermediary’s identi% er Optional. Wells Fargo identi% es

all required intermediaries

4100 Bene% ciary’s FISWIFT BIC for bene% ciary’s bank, name,

and address

Name and address also acceptable if

SWIFT BIC is not available

4200 Bene% ciary InformationBene% ciary’s account identi% er,

name, and address

5000 Originator InformationOriginator’s identi% er (e.g., account

number), name, and address

6500 FI to FI Information

22


Fedwire format example:

Original Fedwire payment instructions

{1100} Msg Disposition : 30P N

{1110} Time-Stamp : 0715 1047 FT03

{1120} Omad : 201307 E6B7088C 000022

{1510} Type/SubType Code : 10 00

{1520} Imad : 20130715 E6B7011C 000028

{2000} Amount : $20,615.00

{3100} Sender Fi : 256070000

LEFT BANK

{3320} Sending Bank Ref# : 3429991 071513

{3400} Receiver Fi : 026005092

Wells Fargo NY INT

{3600} Business Function : CTR (Customer Transfer)

{4100} BBK- : BCCDDBKAX

CHINA BANK

123 STREET

HONGKONG

{4200} BNF FI - : BCCDDBKAY

CHINA BANK

456 STREET

SINGAPORE

{6000} OBI- TRANSFER FEES

International payment formatting guide

Formatting overviewThe purpose of this section is to provide helpful information on SWIFT or CyberPay payment formats in order to maximize straight-through processing (STP) of your payments at Wells Fargo. STP simply means formatting your payments with the correct information in the correct fi elds (according to SWIFT standards or Wells Fargo’s CyberPay requirements) so that they fl ow “straight-through” our funds transfer systems without any operator intervention. In doing so, you decrease the likelihood of investigations, which ultimately leads to better service for your customers. Two types of payments will be discussed in this section: customer transfers (also referred to as a third-party or commercial payments) and bank-to-bank (also referred to as treasury/trade related payments) transfers.

Customer transfers are sent using SWIFT messages or via Wells Fargo proprietary payment initiation service, CyberPay. SWIFT defi nes the 1XX message series as a customer transfer, whereby the ordering party and/or the ultimate benefi ciary is a nonbank entity. The underlying transaction is typically a payment from an individual or corporation to another to settle trade transactions, personal transfers, travel, or any other purpose.

23


Bank-to-bank transfers are sent using SWIFT MT200s, MT201s, MT202s, or MT203s message types or via Wells Fargo’s proprietary payment service, CyberPay. The underlying transaction typically includes foreign exchange and money market settlements, loan disbursements and repayments, and may also include trade remittances.

A variant of the MT202, the MT202COV, is used where an MT103 commercial payment is sent directly to a benefi ciary bank, but there is a need to provide cover through a third (intermediary) bank. This method of sending payments is called the Cover Method and can result in unanticipated delays. For this reason, Wells Fargo strongly recommends that customers send their commercial payments via Wells Fargo, using the “serial” method rather than splitting the MT103 and MT202COV (the cover method), to minimize risk of delays.

At wellsfargo.com, we provide you with links to assist you in looking up key payment routing information, such as IBAN validation, SWIFT, BIC, CHIPS UID, CHIPS Participant Number, and Fed ABA routing numbers for improved straight-through processing. These links go directly to SWIFT, CHIPS, and the Federal Reserve for the most current information on these payment routing codes: wellsfargo.com/com/international/resources.

Wells Fargo U.S. SWIFT BICs for payment-related messaging

• Financial institutions holding accounts with Wells Fargo in the U.S. that begin with “200009” and “2000295” should send U.S. payment-related SWIFT messaging to Wells Fargo’s PNBPUS33 or PNBPUS33PHL SWIFT BICs.

• Financial institutions holding accounts with Wells Fargo in the U.S. that begin with “200019” should send U.S. payment-related SWIFT messaging to Wells Fargo’s PNBPUS3NNYC SWIFT BIC.

Four simple principles for straight-through processing for SWIFTAlways keep the following simple principles in mind when formatting payment orders:

1. Identify all bank parties with one internationally accepted identifi er. Special note: Always use the SWIFT BIC code when available, and remember to use fi eld option A. In USD clearing, always use a unique identifi er such as a SWIFT BIC, CHIPS Participant Number, a Fedwire Routing number, or an account number (with name and address if the bank maintains an account with Wells Fargo, or with the party in the intermediary bank fi eld). Avoid using just the name and address of a party (except benefi ciaries in /CHQB/payments). Using fi eld option D will result in non-STP with the exception of the U.S. routing codes for Fedwire and CHIPS. Please note that international sort codes are not required for USD payments. A SWIFT BIC is the preferred identifi er for straight-through processing.

For payments in euro, yen, and other currencies, the routing is usually through the SWIFT BIC or local routing code. Payments to Europe and certain other countries may further require identifi cation of the benefi ciary by an IBAN (International Bank Account Number) as well as the full name and address.

2. Each party in a transaction must have a direct account relationship or a local clearing relationship with the previous party in the transaction. If they do not, one party will not be able to move funds to the next party.

3. Always place each party in its designated SWIFT fi eld and always precede the party identifi er with its correct identifi er code. Identifi er codes are typically A, B, or D. Please refer to your SWIFT standard module for more detailed information.

4. Obtain and provide in the payment instructions the maximum possible amount of information from the originator. The most complete source of information will always be the originator.

Some examples are: – Full name and address of originator and benefi ciary including country (it is not recommended to use a PO Box) – Date of birth of any foreign national – Benefi ciary national ID number or passport number – Purpose of payment – IMO (International Maritime Organization) ship identifi cation number and fl ag from vessel

24


Book transfer — STPA book transfer can be used to settle a transaction when the originating bank and benefi ciary bank or benefi ciary each maintain an account with Wells Fargo. Book transfers improve payment timeliness by avoiding the use of an external clearing network and eliminating the need to add another U.S. Clearing Institution (IBK) to the payment chain.

IBAN (International Bank Account Number)The IBAN was introduced some years ago and has been adopted by each member of the EU and a growing number of other nations. The purpose of the IBAN is to facilitate STP. It is a requirement to provide an IBAN whenever making a payment into the eurozone and throughout Europe. Payments not containing an IBAN are subject to delay, additional charges, and, in some cases, rejection.

The IBAN is the benefi ciary’s account number with the benefi ciary’s bank. In general, the IBAN comprises the country code, two check digits, and a national bank identifi er and account number. In some countries, it will also contain the fi rst four characters of a SWIFT BIC. Only the benefi ciary can provide its IBAN. There is no published directory. Each IBAN should be represented electronically as continuous text. But, for ease of translation, it may often be shown on paper in blocks of four characters.

ExamplesGermany DE89370400440532013000UK GB29NWBK60161331926819Saudi Arabia SA7001002001230301000398

IBAN formats vary from country to country. Specifi c formats for each IBAN country can be obtained from the IBAN Registry. SWIFT has been designated as the o4 cial IBAN registration authority. The registry is posted on the SWIFT website at: http://www.swift.com/dsp/resources/documents/IBAN_Registry.pdf

25


The IBAN should be placed in the benefi ciary account number fi eld (SWIFT MT103-f59). It is worth noting here that your payment will only achieve full STP when the IBAN is used in conjunction with a SWIFT BIC code in fi eld 57A format for the benefi ciary bank.

Below is an example of how the IBAN changes the format of fi eld 59::57A: CRESCHZZ70A:59:/ CH350023023012345678AJohann SchweitzerAlpengasse 1, Geneva

NOTE:Some common IBAN-related mistakes that prevent STP, even in the event of a BIC code being used in format A, are:

1. Quoting the term “IBAN” in front of the IBAN in fi eld 59 — the term “IBAN” is never part of a valid IBAN.

2. Quoting the IBAN number in fi eld 70/72 instead of in fi eld 59 — an IBAN refers only to the benefi ciary’s account number.

3. Quoting the old account number in fi eld 59 and the IBAN number in fi eld 70/72.

SWIFT

SWIFT BIC address

SWIFT BICs are a universal method of identifying fi nancial institutions to facilitate the automated processing of telecommunication messages in banking and related fi nancial environments. The BIC consists of eight or 11 characters comprising the Bank Code (4), Country Code (2), Location Code (2), and optional Branch Code (3). SWIFT BICs exist for both connected (SWIFT BIC) and non-connected (NON-SWIFT BIC) institutions.

Those fi nancial institutions that are not directly connected to SWIFT are identifi ed by a “1” in the eighth fi eld of their BIC address.

U.S. National Clearing System codes

National clearing system codes, or identifi ers, may be utilized to identify certain parties in a SWIFT message and to facilitate STP. When utilizing the following codes, be sure to include double slashes (e.g., //CH) before the actual routing number qualifi er (//CH //CP, //FW).

The following are the most common U.S. clearing system codes:

CHIPS participant codes or routing numbers are four-digit numbers and are used in fi elds 56, 57, and 58. These codes are used to identify participants in the CHIPS system. Only one CHIPS participant number should be present in an instruction. Other parties in the payment order should be identifi ed using either a CHIPS UID or SWIFT BIC.

Example:

57D://CP0509Wells Fargo BankNew York, NY

A CHIPS UID is a six-digit number and is used in SWIFT fi elds 57, 58, 59, and CHIP Tags 4100 only when a CHIPS participant code is used in the preceding party fi eld. The UID number identifi es a particular account party (bank or corporate) in a SWIFT message.

Example:

58D://CH123456XYZ BankCity, Country

26


Fedwire routing numbers, or Fed ABAs, are nine-digit numbers used to identify parties in the U.S. Federal Reserve payment system (Fedwire). The Fed ABA is used in fi elds 56, 57, and 58.

Example:

57D://FW026005092Wells Fargo BankCharlotte, NC

Other country clearing codesMany countries of the world have specifi c clearing codes, although SWIFT BICs are now used more commonly to identify banks. However, these codes can be included in your payment instructions, fi elds 56, 57, or 58, under option A (or D for payments through the U.S.). Always begin with a double slash. Examples of these codes are:

UK — Sort Code. Six digits. Used with SC. Example: //SC309634Germany — Bankleitzahl. Eight digits. Used with BL. Example: //BL12345678Please note that international sort codes are not required for USD payments. A SWIFT BIC is the preferred identifi er for straight-through processing.

Other party identifi ersAccount numbers or IBANs are most often found in fi elds 50 and 59 and are preceded with a single slash. Account numbers identify the actual account of the originating party and the party to be credited at the benefi ciary bank. It is imperative to always include the full remitter and benefi ciary name and address in addition to the account number in both fi elds 50 and 59.

In many countries across the world, regulations have been introduced relating to a recommendation of the Financial Action Task Force (FATF). The goal of this recommendation is to achieve full transparency in global payments. In enacting the regulations to meet this objective, individual jurisdictions may have interpreted the recommendation slightly di2 erently. This has resulted in some regulatory variation from country to country.

The basic requirement is generally the same: full information identifying the remitter (ordering party) and benefi ciary must be included with each payment. The information required is generally the account number and full name and address. In the absence of an account number for the remitter, some other form of identifi cation must be obtained.

This information must be quoted in fi eld 50. Please note that the requirements in an originating jurisdiction and a destination jurisdiction may vary.

The benefi ciary bank will be subject to the regulatory requirements of their regulatory authorities. In this scenario, it is possible that a payment that meets the originating bank’s regulatory hurdles may not meet the benefi ciary bank’s regulatory requirements. If this happens, payments may be subject to delay, inquiry or, possibly, return – even though the remitting bank met its regulatory requirements. It is, therefore, prudent to familiarize yourself with the various regulatory requirements related to the FATF recommendation and incorporate them into your payment processing upfront. Wells Fargo can help provide you with information related to these regulations.

Example

(non IBAN):

50K:/1234567890000John Doe1234 Brown StreetCity, Country

27


Example

(IBAN):

59:/ DE89370400440532013000Jane Doe9876 Green StreetCity, Country

Example:

(passport used to identify remitter in place of account number):

50F:/CCPT/US/123456781/SMITH JOHN2/299, PARK AVENUE3/US/NEW YORK, NY 10017

NOTE:

SWIFT standards provide nine, four-digit codes to specify the method of identifi cation used to authenticate the remitter’s identity. The identifi er above, CCPT, indicates a passport. It is followed by the entity issuing the identifi cation, in this case the U.S. government. When using the F option in place of the account number, the method of identifi cation should always be formatted in this manner. The identifi cation information should be followed by full address information. Further information on the other available ID codes can be obtained from the SWIFT Standards Guide.

Please remember that each SWIFT fi eld should contain information about only one party in the transaction.

Codewords for fi eld 72 (Sender to Receiver Information)There are several di2 erent codewords for use in fi eld 72, which indicate instructions or additional information for other parties in the payment. SWIFT guidelines discourage free-form narrative text in fi eld 72 as this will lead to repair at receiving banks. Field 72 is to be used only to convey information to banks that participate in the completion of the payment, such as the receiver of the payment instruction, an intermediary bank, an account with bank, and/or bank benefi ciary. Information that pertains to a nonbank benefi ciary should be placed in fi eld 70 of an MT103. For a bank-to-bank transfer, the appropriate receiving bank reference number should be quoted in fi eld 21.

All text in fi eld 72 must be preceded by a codeword. Codewords fall into two categories: those that provide information for the parties in the transaction or those that request a specifi c action of a designated bank party. All codewords must be started and fi nished with one slash (Ex:/ACC/)

Codes preceding instructions include the following:

Code Characters Structure

/ACC/ Instructions following are for the account with institution All message types

/BNF/ Information following is for the bene% ciary MT202 only

/INS/The instructing institution that instructed the sender

to execute the transactionMT103 and 202/3 only

/INT/ Information following is for the intermediary All message types

/PHON/ Please advise account with institution by phone MT2nn only

28


/PHONBEN/ Please advise/contact bene% ciary/claimant by phone MT202/3 only

/REC/ Instructions following are for the receiver All message types

/TELE/Please advise the account with institution by the most

e# cient means of telecommunicationMT2XX only

/TELEBEN/Please advise the bene% ciary/claimant by the most

e# cient means of telecommunicationMT202/3 only

/TELEIBK/Please advise the intermediary by the most e# cient

means of telecommunicationMT2nn only

Wells Fargo can agree on other specifi c, proprietary (non-standard) codewords with customers for fi eld 72 to identify a specifi c service or processing requirement to allow STP. Unless previously agreed, the use of any codeword other than those above (with the exception of /REC/ always is a repair), or any free-form text, will result in repair. Wells Fargo is considered the “Receiving Bank” of your payment instruction; therefore, any information that pertains to an action to be executed by Wells Fargo should be preceded by the codeword /REC/. Information intended for any other party in the payment should not be preceded by /REC/.

MT103, MT200, MT202, and MT202COV payment formatsCustomer transfers — MT103When you send your payment instructions to Wells Fargo by SWIFT MT103, the following format and information should be used:

Customer transfers

Field Description OptionsMan/

OptComments

:20:Sender’s

ReferenceM Maximum 16 characters

:23B:Bank Operation

CodeM Should always be CRED

:23E: Instruction Code O Some codes previously in % eld 72 now put here. Examples include

PHON, TELE, and CHQB

:26T:Transaction Type

CodeO Only use this % eld if bilaterally agreed

:32A:

Value Date/

Currency/

Interbank Settled

Amount

M Wells Fargo accepts future-value dated instructions up

to 10 business days (30 days for London)

:33B:

Currency/

Instructed

Amount

O Used if the currency code or amount is di| erent from

% eld 32A

:36: Exchange Rate O Speci% es the exchange rate applied when converting the original

ordered amount to the transaction amount

29


:50:Ordering

CustomerA, F, or K M

Has to include full name and address, plus account number

or other unique identi% er :/IBAN

:51A: O This % eld should not be used with MT103

:52A:Ordering

InstitutionO

Financial institution of the ordering customer, if di| erent than

that of the sender

:53:Sender’s

CorrespondentA or B O

The account or branch of the sender or another % nancial

institution that will reimburse Wells Fargo. Only use if agreed by

Wells Fargo as this may cause payments to be repaired

:54A:Receiver’s

CorrespondentO

The branch or other % nancial institution where funds will be made

available to Wells Fargo. Use of this % eld may cause payments to

be repaired

:55A:

Third

Reimbursement

Bank

O Rarely used and may cause payments to be repaired

:56A:Intermediary

InstitutionA or D O

Unnecessary on most transactions as Wells Fargo will locate the

intermediary bank for you automatically; it is never necessary to

list Wells Fargo as the intermediary institution, as this will result in

a repair transaction

:57A:Account with

InstitutionA or D O

In the U.S., the D option should be used with the city and state

of the bank quoted

:59:Bene% ciary

Customer

A or no

letterM

Full bene% ciary’s account number/IBAN, name, and address.

Payments without a bene% ciary account number/IBAN may be

returned by the receiving bank for more information

:70:Remittance

InformationO

Information intended for the bene% ciary only, e.g., invoice

numbers. The only codeword acceptable is /RFB/ and should be

followed by a maximum 16 character reference on line 1

:71A: Details of Charges MBEN or SHA will result in our charges being deducted.

Where charges are for your account, use OUR

:71F: Sender’s Charges O The currency and amount of any transaction charges deducted by

the sender and by prior banks in the payment chain

:71G: Receiver’s Charges O

We prefer that this % eld is not used. Charges will automatically

default to your fee pro% le if charges are for “OUR,” and will be

taken on an analysis basis

:72:

Sender to

Receiver

Information

O

Information for receiver, intermediary bank, or account with bank.

Codewords, as de% ned previously, should precede any reference

or narrative text

NOTE: Field 72: Non-USD payments — inclusion of information other than previously mentioned special codewords may result in non-STP.

NOTE: Field 57: Non-USD payments — may require the use of option A with a valid BIC code in order to achieve STP.

30


Bank transfer for your own account — MT200When you send your payment instructions to Wells Fargo by SWIFT MT200, the following format and information should be used:


OptComments

:20:

Transaction

Reference

Number

M Maximum 16 characters

:32A:

Value Date,

Currency Code,

Amount

MWells Fargo accepts future-value dated instructions up

to 10 business days (30 days in London)

:53A:Sender’s

Correspondent O




:56A:Intermediary

InstitutionA or D O



list Wells Fargo as the intermediary institution, as this will result in


:57A:Account with

InstitutionA or D M

In the U.S., the D option should be used if the city and state of the

bank are quoted

:72:

Sender to

Receiver

Information

O

Information for the receiver, intermediary, or account with bank.

Codewords, as de% ned above, should precede any reference or

narrative text



31


Bank transfer to other bank benefi ciaries — MT202

When you send your payment instructions to Wells Fargo by SWIFT MT202, the following format and information should be used:


OptComments

:20:

Transaction

Reference

Number

M Maximum 16 characters

:21: Related Reference M Reference for the bene% ciary institution

:32A:

Value Date,

Currency Code,

Amount

MWells Fargo accepts future-value dated instructions up to

10 business days (30 days in London)

:52A:Ordering

InstitutionA or D O Originating institution, if di| erent than that of the sender

:53A:Sender’s

CorrespondentA or D O




:54A:Receiver’s




be repaired

:56A: Intermediary A or D O



list Wells Fargo as the intermediary institution as this will result in


:57A:Account with

InstitutionA or D O


bank are quoted

:58A:Bene% ciary

InstitutionA M

In the U.S., if the D option is used, the city and state of the bank

should be quoted

:72:

Sender to

Receiver

Information

O

Information for the receiver, intermediary bank, account with

bank, or bene% ciary bank. Codewords, as de% ned previously,

should precede any reference or narrative text



32


Cover payments — MT202 COV

When you send cover payment instructions to Wells Fargo via SWIFT, the MT202 COV message should be utilized, with the following format and information:


OptComments

Sequence A: General information

:20:Trans Reference

NumberM Maximum 16 characters

:21: Related Reference M Reference for the bene% ciary institution

:32A:

Value Date,

Currency Code,

Amount

MWells Fargo accepts future-value dated instructions up to

10 business days (30 days in London)

:52A:Ordering

InstitutionA or D O

Financial Institution of the ordering customer, if di| erent than

that of the sender

:53A:Sender’s




Wells Fargo, as this may cause payments to be repaired

:54A:Receiver’s




be repaired

:56A: Intermediary A or D O





:57A:Account with

InstitutionA or D O


bank are quoted

:58A:Bene% ciary

InstitutionA or D M

In the U.S., if the D option is used, the city and state of the bank

should be quoted

:72:

Sender to

Receiver

Information

O


bank, or bene% ciary bank. Codewords, as de% ned above, should

precede any reference or narrative text

End of Sequence A

33


Sequence B: Underlying customer credit transfer details

:50A:Ordering

CustomerA, F, or K M

Has to include full name and address, plus account number/IBAN

or other unique identi% er

:52A:Ordering

InstitutionO

Financial institution of the ordering customer, if di| erent than

that of the sender

:56A:Intermediary

InstitutionA or D O





:57A:Account with

InstitutionA or D O

In the U.S., the D option should be used with city and state of the

bank quoted

:59: Bene% ciary

Customer

A or no

letterM

Full bene% ciary’s account number, name, and address. Payments

without a bene% ciary account number IBAN may be returned by

the receiving bank for more information

:70: Remittance

InformationO

Information intended for the bene% ciary only, e.g., invoice

numbers. The only codeword acceptable is /RFB/ and should be

followed by a maximum 16-character reference on line 1

:72:

Sender to

Receiver

Information

O


bank, or bene% ciary bank. Codewords, as de% ned above, should

precede any reference or narrative text

:33B:

Currency/

Instructed

Amount

OUsed if the currency code or amount is di| erent from

% eld 32A



34


MT202 Message for trade transaction, requiring charges to be deducted

NOTE: You may instruct us to deduct charges from the payment amount of an MT202 payment made for trade-related purposes, such as a payment to settle a letter of credit or collection, when charges under the L/C are for the benefi ciary. You must indicate in fi eld 72 an agreed codeword (followed by no other information on the line, if possible).

Field Description Options Man/Opt Comments

:72: Sender to Receiver

Information

O Codeword instructs Wells Fargo to deduct its

payment charges. Several codes are available,

but these must be agreed upon in advance.

Alternatively, for USD you may specify your

trade payment reference patterns that appear in

% eld 20, 21, or 72. Wells Fargo’s payment system

will scan for these reference numbers only and

deduct a fee

MT203

These payment types are multiple messages for the MT200 and MT202, respectively. The main di! erence is that, within the messages, there are repetitive fi elds, however, the formatting of each fi eld should be the same as mentioned above.

35


Examples of properly formatted MT103, MT200, MT202, and MT202COV payments

USD examplesMT103 customer transfer — “OUR”

Ms. Julianna Vandersteen of Bruges, Belgium, instructs Rabobank to transfer USD 1,365.49 for the account of Mr. Roger Benuto, Philadelphia, PA 19146, a customer of PNC Bank, Philadelphia, PA. The benefi ciary’s account number is 123456789 and the reference is 90/IOE. The value date of the payment is January 03, 2013. Ms. Vandersteen wants to pay her own bank’s charges, but all other charges are for the account of the originator.


:20: Sender’s Reference TRN67543


:32A:Value Date/Currency/Interbank Settled

Amount130103USD1365,49


/NL63ABNA1234567890

Ms. Julianna Vandersteen

Grand Canal Street

Bruges, Belgium

:57D: Account with Institution

//FW031000053

PNC Bank

Philadelphia, PA

:59: Bene% ciary Customer

/123456789

Mr. Roger Benuto

801 Broad Street

Philadelphia, PA 19146

:70: Remittance Information 90/IOE

:71A: Details of Charges OUR

36


MT103 — Customer transfer — “BEN”

Ms. S. Chan of Singapore instructs DBS Bank, Singapore, to transfer USD 1,500.60 in favor of Mr. Patrick Evans, Hong Kong, a customer of Hang Seng Bank. The benefi ciary’s account number is 8976543218 and the payment reference is 90/IOE. The value date of the payment is January 03, 2013. The benefi ciary will pay all bank charges.






:33B: Currency/Instructed Amount USD1520,60


/63124987

S Chan

123 Ra� es Square

Singapore

:57A: Account with Institution HASEHKHH


/8976543218

Mr. Patrick Evans

164 Kowloon Causeway,

Hong Kong



:71F: Sender’s Charges USD20,00

NOTE: When the sender indicates “SHA” in fi eld 71A, Wells Fargo will follow the same routine as if the charges were for the benefi ciary.

37


MT103 — Customer transfer — “SHA”

Ms. Julianna Vandersteen of Bruges, Belgium, instructs Rabobank to transfer USD 1,365.49 for the account of Mr. Roger Benuto, Philadelphia, PA 19146, a customer of PNC Bank, Philadelphia, PA. The benefi ciary’s account number is 123456789 and the reference is 90/IOE. The value date of the payment is January 03, 2013.Ms. Vandersteen wants to pay her own bank’s charges, but all other charges are for the account of the benefi ciary.







/NL63ABNA1234567890

Ms. Julianna Vandersteen

Grand Canal Street

Bruges, Belgium


//FW031000053

PNC Bank

Philadelphia, PA


/123456789

Mr. Roger Benuto

801 Broad Street

Philadelphia, PA 19146


:71A: Details of Charges SHA


MT200 bank transfer for own account

Rajiv Bank India sends an MT200 for USD 1,000,00 valued January 03, 2013, to pay its account at Bank of New York, New York. Their reference number is 123CT.


:20: Transaction Reference Number 123CT

:32A: Value Date, Currency Code, Amount 130103USD1000000,

:57A: Account with Institution IRVTUS3N

38


MT202 bank transfer in favor of a third bank trade transaction

The Import/Export Department of Bank of Taipei sends a funds transfer for USD 14,950.76, valued January 20, 2013, to settle L/C xy224 to Gunma Bank, Tokyo, Japan. Gunma’s reference number is GB25678. Bank of Taipei indicates to Gunma that it has already deducted charges of $15.00 from the payment.


:20: Transaction Reference Number LCxy224

:21: Related Reference GB25678

:32A: Value Date, Currency Code, Amount 130103USD14950,76

:58A: Bene% ciary Institution GUMAJPJTXXX

:72: Sender to Receiver Information /BNF/Our ChargesUSD15,

MT202 COV — Bank transfer to cover underlying customer credit transfer

Ms. S. Chan of Singapore has instructed DBS Bank, Singapore, to transfer USD 1,500.60 in favor of Mr. Patrick Evans, Hong Kong, a customer of Hang Seng Bank. DBS Bank has sent a SWIFT MT103 directly to Hang Seng Bank, instructing it to credit Mr. Rayer’s account. To cover the customer credit transfer, DBS then sends the 202 COV, illustrated below, to cover the payment. In this example, both DBS and Hang Seng have accounts on our books.




:21: Related Reference TRN67543(1)


:58A: Bene% ciary Institution HASEHKHH


:50A: Ordering Customer /63124987

S. Chan

123 Ra� es Place

Singapore

:57A: Account with Institution HASEHKHH

:59: Bene% ciary Customer /2638054567

Mr. Patrick Evans

164 Kowloon Causeway,

Hong Kong


(1) Transaction reference from underlying customer credit transfer.

39


Foreign Currency Example MT103 debiting USD account in foreign currency by debiting to USD account

A Japanese bank sends an MT103 denominated in Indian rupees to pay a benefi ciary in India. Field 54 is not included on the payment order and fi eld 72 instructs Wells Fargo to debit the Japanese bank’s USD account. The Japanese bank contacts Wells Fargo for a rate before initiating the payment. Importer Company of Tokyo, Japan, instructs the Japanese bank to transfer INR 4,200.00 for the account of Export Company, Mumbai, India, a customer of Bank of India, Mumbai. The benefi ciary’s reference is 90/IOE. The value date of the payment is January 03, 2013. The benefi ciary will pay all bank charges.



:32A: Value Date/Currency Code/Amount 130103INR4200,

:50: Ordering Customer

/12345678

Importer Company

Fuji Mount Road

Tokyo, Japan

:57A: Account with Institution BKIDINBBXXX


/12345678

Export Company

Taj Mahal Building,

2345 Empire Road

Mumbai, India



:71F: Sender’s Charges INR50,


/REC/DEBIT OUR USD

//ACCOUNT at XXX.XX RATE CONTRACT

//1234567

Wells Fargo will debit the Japanese bank’s USD account for the USD equivalent of INR 4,200.00 using XXX.XX rate. Wells Fargo will then credit its nostro with its local correspondent in Mumbai and send it an MT103, instructing it to pay Bank of India for credit to the Export Company.

40


Samples of common formatting errors and correctionsCustomer transfer — MT103 paymentExample 1:


:20: Sender’s Reference LC3467456





B AND L Businesses

Sydney, NSW

Australia


//FW053201234

Branch Banking & Trust Co.

Greenville, South Carolina


1562852368

/Benny Frost

91632 Long Street

Greenville, South Carolina 12345


NOTE: Field 50 is incomplete. FATF recommendations require that the ordering customer be identifi ed with full information — account number, name, and address. Field 50 can also be used with the “F” option and fi eld 59 can be used with the “F” option e! ective Nov 22, 2015. This should be shown as:

/326492011B AND L BusinessesConstitution StreetSydney, NSW 1298

OR

:50F:/15628523681/BENNY FROST2/91632 LONG STREET3/US/GREENVILLE, SOUTH CAROLINA 3/12345

NOTE: Non-compliance with FATF recommendations can result in delayed and/or returned payments, as well as greater charges taken from the payment.

41


Customer transfer — MT103 paymentExample 2:


:20: Sender’s Reference LC3467504





/326492011

B AND L Businesses

Constitution Street

Sydney, NSW 1298

Australia

:53A: Sender’s Correspondent PNBPUS33PHL


//FW053201607

Branch Banking & Trust Co.

Greenville, South Carolina


/1562852368

Benny Frost

91632 Long Street

Greenville, South Carolina 12345


:72/: Sender to Receiver Information

/REC/Advise & Cr Ben’s Account

//Branch Banking & Trust Co of

//South Carolina

//053201607

NOTES:Field 53 — fi eld 53 is used incorrectly. It should not identify the receiving bank (Wells Fargo SWIFT BIC). It should either be left blank or refl ect your account number if you maintain multiple accounts with Wells Fargo.

Field 72 — phrase “ADVISE AND CR BEN’S ACCOUNT” is not necessary and is formatted incorrectly for STP. The information in this fi eld is redundant to information in fi eld 57. If the intent is to have the account with institution (the benefi ciary’s bank) notify one of its branches, the information should be addressed to the party in fi eld 57 by use of codeword /ACC/, followed by the request to notify its branch. Furthermore, the double slash (//) should be the fi rst characters on each subsequent line indicating a continuation of the previous line.

42


Customer transfer — MT103 paymentExample 3:


:20: Sender’s Reference TT-21318




:33B: Currency/Instructed Amount USD6019,78


/23412367

Penrice Soda Products

6290 Beverage Boulevard

Paris 226739, France

:56D: Intermediary institution

//FW043000261

Mellon Bank

Pittsburgh, PA

:57D: Account with Institution ABA Routing 043000261/1628836

Mellon Bank Pittsburgh, PA

:59: Bene% ciary Customer/162-8836

Merrill Lynch


:71F: Sender’s Charges USD30


/REC//ACC/Credit Account /NUMB

//Number under advice for further

//credit to JD Wertheim A/C No

//825-71234

NOTES:

Field 56 — there is no need for this fi eld to be completed as there is no intermediary bank in this payment. The information should be moved to 57D.

Field 57 — should be 57D //FW043000261 Mellon BankPittsburgh, PA

Field 72 — /REC/ denotes instructions to the receiving bank, Wells Fargo, but these instructions are intended for Merrill Lynch; this is a case for further credit; therefore, in order to address the party in fi eld 59, the correct codeword is /ACC/, followed by the name of the account number and name of the fi nal benefi ciary party. (Example: /ACC/82570030 JD Wertheim). Please note that an address for this benefi ciary should have also been included.

43


Bank transfer — MT202Example 1:


:20: Transaction Reference Number HK1234589

:21: Related Reference AU333455

:32A: Value Date, Currency Code, Amount 130103USD1200000.00


/ABA 0001

Bank of New York Mellon

New York

:58D: Bene% ciary Institution Nat’l Australia Bank

Tokyo, Japan

:72: Sender to Receiver Information /ACC/ A/C No. 123 100027 000

//UID 250062

NOTES:

Field 57 — the bank provided the correct ABA number, but in the incorrect format. The CHIPS Participant Number should be used with the proper “//” code — //CP0001 (All CHIPS ABA numbers are four digits). Even though the name is included on the second line, please ensure that the bank identifi er number is correct, as this is the information that will be utilized to e! ect payment. If the payment stops for repair, we are required to verify that the name and number agree.

Field 58 — the correct UID number was placed in fi eld 72. It should be placed in fi eld 58, as shown, used with the proper “//” code.

Fields 57 and 58 should look like this:



//CP0001

Bank of New York Mellon

New York

:58D: Bene% ciary Institution

//CH250062

Nat’l Australia Bank

Tokyo, Japan

Field 72 — the account number is unnecessary because use of the UID will automatically direct the payment to the proper account. Field 72 was not needed.

44




:20: Transaction Reference Number US 11908

:21: Related Reference As above


:52A: Ordering Institution FNBBSGSGXXX

:57D: Account with Institution Standard Chartered Bank

New York

:58D: Bene% ciary Institution //CH010762 ABA711 UOVBSGSG

United Overseas

:72: Sender to Receiver Information /BNF/REF. OBS-FCC 901

NOTES:

Field 57 — CHIPS Participant Identifi er (member number) belongs in fi eld 57, not 58.

Field 58 — customer included information for both A and D options. With the A option, it could have used just the SWIFT BIC address. With the D option, it must use the proper slash code with the UID number. Either option is acceptable.

Field 72 — these instructions are for the benefi ciary bank, but are incorrectly formatted.

Fields 57, 58, and 72 should look like this:



//CP0256

Standard Chartered Bank

New York, NY


//CH010762

United Overseas Bank

Singapore

:72: Sender to Receiver Information /BNF/OBS/-FCC 901

45




:20: Transaction Reference Number REF. No.: LC BK69625

:21: Related Reference C44590007

:32A: Value Date, Currency Code, Amount 130718USD38125,

:57A: Account with Institution BKTRUS33

:58D: Bene% ciary Institution Kwangtung Provincial Bank

Hong Kong


/BNF/For credit of Ind and Comm Bank of

//China Guangdong USD A/C No 019-595-

//60-10028-2 proceeds of their Zhanjiang

//City Branch Ref C44590007 less our

//Cable Costs USD35

NOTES:

Field 56 — there are two intermediary parties to this transaction, Bankers Trust and Kwangtung Provincial Bank. The fi rst intermediary bank, Bankers Trust, belongs in fi eld 56, not 57.

Field 57 — the second intermediary bank, Kwangtung Provincial Bank, is the account with institution. Use option A, its SWIFT BIC address, to identify the bank.

Field 58 — industrial and Commercial Bank of China is the benefi ciary bank. The name and address are not necessary when the account number is provided.

Field 72 — to avoid possible editing and deletion of important information when the message is mapped into a CHIPS format, the bank reference fi eld should be kept as concise as possible. Eliminate all redundant and duplicate information that has been provided in the respective fi elds elsewhere in the message.

These fi elds should look like this:


:56A: Intermediary Institution BKTRUS33

:57A: Account with Institution KWPBHKHHXXX


/01959560100282

Ind. and Comm Bank of China

Guangdong Br


/BNF/Proceeds of Zhanjiang City Branch

//Ref C44590007 less our Cable Costs

//USD35,

46


Euro examplesMT103 customer transfers

Example 1:

Ms. S. Chan of Singapore instructs DBS Bank, Singapore, to transfer EUR 1,500.00 in favor of Mr. Patrick Evans, Bruges, Belgium, customer of Dexia Bank, in Brussels, Belgium. The benefi ciary’s IBAN is BE42 2638 0551 2345, and the payment reference is 90/IOE. The value date of the payment is January 03, 2013. Benefi ciary will pay all bank charges.





Amount130103EUR1500,00

:33B: Currency/Instructed Amount EUR1520,


/37654992

S. Chan

123 Ra� es Place

Singapore

:57A: Account with Institution GKCCBEBBXXX


/BE42263805512345

Mr. Patrick Evans

Bruges, Belgium



:71F: Sender’s Charges EUR20,

47


Example 2:

Pieter Van Frank asks Banco Frances to transfer EUR 25,000.00 to ABN Amro Bank, Amsterdam, for the account of Maria Van Frank of Rotterdam, Holland, IBAN NL72 ABNA 0417 6428 26. Charges are quoted as OUR.





Amount130103EUR25000,00


/98860043

Pieter Van Frank

Belgrano Plaza

Buenos Aires, Argentina

:57A: Account with Institution ABNANL2A


/NL72ABNA0417642826

Maria Van Frank

River View

Rotterdam, Netherlands


Example 3:

National Commercial Bank, Saudi Arabia, sends an MT103 on behalf of its customer Abdul Najeer to pay EUR 5,500.00 to Lloyds TSB Bank, London, in favor of Ahmed Najeer, whose IBAN at Lloyds is GB29 LOYD 3094 8202 4581 27. Charges outside Saudi Arabia are for the benefi ciary.


:20: Sender’s Reference 12345



Amount130103EUR5500,00


/8764930219

Abdul Najeer

Souliman Avenue

Riyadh, Saudi Arabia

:57A: Account with Institution LOYDGB2L


/GB29LOYD30948202458127

Ahmed Najeer

Park Plaza

Bath, UK



48


MT202 bank transfer covering a trade transaction with benefi ciary deduct

The Import/Export Department of Bank of Singapore sends a funds transfer for EUR 14,950.00, valued January 03, 2013, to pay a remittance under L/C xy224 to Klaus Lampe in Berlin, Germany. Lampe’s reference number is GB12345. They maintain an account with Berenberg Bank, Hamburg. BDP codeword has been used in fi eld 72.


:20: Transaction Reference Number LCxy224


:32A: Value Date, Currency Code, Amount 130103EUR14950,00

:57A: Account with Institution ATXGHRTO

:58A: Bene% ciary Institution LAMPDEHH

:72: Sender to Receiver Information /REC/BEN/

The following codewords can also be used for bene deduction./CHG/BEN//RECBEN//DEDUCT//DEP//PR//CHARG/BEN/

MT202 bank transfer to be e# ected via real-time system (TARGET)

Akbank, Turkey, sends an MT 202 for EUR 1,000,000.00 advising that the payment must be made through an RTGS system in favor of National Westminster Bank in Frankfurt. The SWIFT address is preceded by //RT, the code for the Real Time Gross Settlement System.


:20: Transaction Reference Number FX12345


:32A: Value Date, Currency Code, Amount 130103EUR1000000,00

:58A: Bene% ciary Institution//RT

NWBKDEFF

49


MT203 multiple bank transfer

Banque Misr, Cairo, Egypt, sends a multiple payment instruction totaling EUR 2,500,000.00 to pay banks at various fi nancial institutions. We are instructed to pay EUR 500,000.00 for the account of Wells Fargo Bank, Philadelphia’s account at BNP Paribas, Paris, France; EUR 1,900,000.00 for the account of Citibank, New York at Citibank London; and EUR 100,000.00 for the account of Bayerische Landesbank, Munich, Germany.


:19: Sum of Amounts 2500000,00

:30: Value Date 130103

:20: Transaction Reference Number 2345

:21: Related Reference NL1234

:32B: Currency Code, Amount EUR500000,00

:57A: Account with Institution BNPAFRPP

:58A: Bene% ciary Institution PNBPUS33




:57A: Account with Institution CITIGB2L

:58A: Bene% ciary Institution CITIUS33




:58A: Bene% ciary Institution BYLADEMM

Fields 20 through 58 may be repeated up to 10 times depending on the number of transactions in the message.

50


Yen examplesMT103 customer transfer — “BEN”

ABC Engineering and Chemical Products Ltd. of India instructs Bank of Baroda, India, to transfer JPY 4,400,100 in favor of XYZ Bulk Corp. Japan, customer of The Bank of Tokyo-Mitsubishi, Ltd. Osaka-Chuo Branch, Japan. The benefi ciary’s a/c no. is 6789 and the payment reference is PAYMENT OF INVOICE NO.EB 9876 dtd 28SEP2013. The value date of the payment is January 03, 2013. Benefi ciary will pay all bank charges.


:20: Sender’s Reference 0123FIBC00012345



Amount130103JPY4400100,

:33B: Currency/Instructed Amount JPY4400100,


/012345

ABC Engineering And Chemical

Products Ltd.

344 Mumbai-Pune Road

Pimpri Pune 411008, India

:57A: Account with Institution :BOTKJPJT


/6789

XYZ Bulk Corp.

23 Terauchi 1-Chome Toyonaka-Shi

Osaka 561, Japan

:70: Remittance Information Payment of Invoice No.EB 9876

dtd 28Sep2013


:71F: Sender’s Charges JPY0,

:72: Sender to Receiver Information /ACC/Osaka-Chuo Branch

51


MT103 customer transfer — “SHA”

United Coconut Planters Bank sends an MT103 on behalf of its customer ABC International, Inc. to pay JPY 8,757,200 to Sumitomo Mitsui Banking Corporation, Hongo Branch Tokyo, Japan, in favor of XYZ Medical International, Inc. The benefi ciary’s a/c no. is 1234. Charges outside the Philippines are for the benefi ciary.


:20: Sender’s Reference 3105-A-27-2013



Amount130103JPY8757200,


/9876

ABC International Inc.

8f Green Bldg Ortigas Ave

Manila, Philippines

:57A: Account with Institution SMBCJPJT


/1234

XYZ Medical International Inc.

Fuji Bldg 6f 11 25 Hongo

8 Chome Bunkyo Ku

Tokyo, Japan


:72: Sender to Receiver Information /ACC/Account At Hongo Branch

//Tokyo, Japan

MT103 customer transfer — “OUR”

IJK Chile Motor Corporation asks Banco Bice to transfer JPY 7,218,690 to The Bank of Tokyo-Mitsubishi, Ltd., 31-54, Nishiki 6-Chome, Naka-Ku, Nagoya-Shi, Aichi 460-0007, Japan, for the account of IJK Motor Corporation of Aichi, Japan. The benefi ciary’s a/c no. is 9876 and the payment reference is INVOICE ABC330P0812. Charges are quoted as OUR.


:20: Sender’s Reference 771-501-901234


:23E: Instruction Code SDVA


Amount130103JPY7218690,


/1234-5

IJK Chile Motor Corporation

Vespucio Norte 088

Valparaiso, Chile

:57A: Account with Institution BOTKJPJKL

52



/9876

IJK Motor Corporation

Aichi, Japan

:70: Remittance Information Invoice ABC330P0711



/ACC/Pay To 31-54, Nishiki

//6-Chome,Naka-Ku.Nagoya-Shi

//Aichi 460-0008, Japan

MT200 bank transfer for own account

Bank of Ayudhya asks to transfer JPY 300,000,000 from its account to its account at The Bank of Tokyo-Mitsubishi, Ltd., Tokyo, for value January 03, 2013, under its reference FMTRN999/2013.


:20: Transaction Reference Number FMTRN999/2013

:32A: Value Date, Currency Code, Amount 130103JPY300000000,

:57A: Account with Institution BOTKJPJT

MT202 bank transfer — To cover a treasury transaction

King’s Town Bank sends a funds transfer for JPY 114,000,000, value January 03, 2013, to cover a foreign exchange deal with Aichi Bank Ltd. in Nagoya, Japan. Aichi Bank’s reference number is CDIBTP1365TNBBTN. Kings Town’s reference is FXNAAG1234. Aichi Bank maintains an account with The Bank of Tokyo-Mitsubishi, Ltd, Tokyo, Japan.


:20: Transaction Reference Number FXNAAG1234

:21: Related Reference CDIBTP1365TNBBTN



:58A: Bene% ciary Institution AICHIJPJN

53


MT202 COV – Bank transfer to cover underlying customer credit transfer

ABC (HK Ltd.) has instructed Bank of China (Hong Kong) Ltd. to transfer JPY4,000,000 in favor of XYZ Co Ltd., a customer of The Bank of Nagoya, Kouzouji Branch. The benefi ciary’s account number is 3136207 and the payment reference is XYZ-260210/213. Bank of China (Hong Kong) Ltd. has sent SWIFT MT103 directly to The Bank of Nagoya, Nagoya, instructing it to credit XYC Co Ltd.’s account. To cover the customer credit transfer, Bank of China (Hong Kong) Ltd. sends the MT202COV, as illustrated below, to cover the payment.




:21: Related Reference 12140224742067001


:58A: Bene% ciary Institution NAGOJPJN


:50A: Ordering Customer /03137400033011

ABC (HK) Ltd.

B Tower 1 Metroplaza 220 Hing Fong

Rd Kwai Chung NT Hong Kong

:57A: Account with Institution NAGOJPJN

:59A: Bene% ciary Customer /3136207

XYZ Co Ltd.

Nagoya, Japan

:70: Remittance Information XYZ-260210/213

:72: Sender to Receiver Information /ACC/Kouzouji Branch

1 Transaction reference from underlying customer credit transfer.

MT202 bank transfer — To cover a trade transaction with benefi ciary deduct

King’s Town Bank sends a funds transfer for JPY 14,003,312, valued January 03, 2013, to pay a remittance under LC7NAAG1234 to Aichi Bank Ltd. in Nagoya, Japan. Aichi Bank’s reference number is 190-BB-9008999. It maintains an account with The Bank of Tokyo-Mitsubishi, Ltd., Tokyo, Japan. BDP codeword has been used in fi eld 72.


:20: Transaction Reference Number LC7NAAG1234

:21: Related Reference 190-BB-9008999



:58A: Bene% ciary Institution AICHJPJN

:72: Sender to Receiver Information /REC/BEN/

The following codewords can also be used for bene deduction:/CHG/BEN//CHGBEN//RECBEN//REC/BEN//DEDUCT//BEN/

54


RMB examples1. O# shore Payments

For CNY payment order with benefi ciary bank outside of the Mainland of People’s Republic of China, please refer to the below formatting requirements. They are the same as the existing formatting requirements of other currencies out of Wells Fargo Bank, N.A. London Branch. Compliance with the instructions and general formatting rules according to the SWIFT recommendations is requested.


Field 32:

• Currency should be “CNY”• The value date cannot be in the past and not further in the future than 30 days

Field 50:

• The Account line must contain the account number of the Ordering Customer• Must include the full name and address of the Ordering Customer

Fields 52, 53, 54, 56, and 57:

• “A” format should be used. Any other format will result in non-STP

Field 59:

• The Account line must contain the account number of the Benefi ciary Customer• Must include the full name and address of the Benefi ciary Customer

Field 72:

• The use of this fi eld should be avoided. Any usage will result in non-STP





Amount130103CNY8757,


/9876123

Ms Julianna Chu

Grand Street

Bruges, Belgium

:57A: Account with Institution //CN123456789012


/12349874

YU CHAN

FLAT B SAMPLE STREET

HONG KONG

:70: Remittance Details CONTRACT GHP-888


:72: Sender to Receiver Information LEAVE BLANK OR REPAIR CHARGES COULD

BE APPLIED

55



Field 32:


Fields 52, 53, 54, 56, 57, and 58:

• “A” format should be used. Any other format will result in non-STP

Field 72:

• The use of this fi eld should be avoided. Any usage will result in non-STP

Onshore Payments

For CNY payment order with benefi ciary bank in the mainland of People’s Republic of China, please refer to the below formatting requirements.


Field 32:


Field 50:

• “K” or “F” format should be used• The Account line must contain the account number of the Ordering Customer. It can be up to 32 digits long• Must include the full name and street address of the Ordering Customer• For “K” format, Address fi eld should start in a new line after the name and should be preceded by the codeword

“ADD.”• The name and address of the ordering customer together should not exceed 27 sets Chinese characters in

4-digit codes.* If they are in English, the name and address fi elds each cannot exceed 60 characters

Field 53, 54, and 56:

• Use of these fi elds will result in NSTP transactions

Field 57:

• “C” or “D” format should be used• The Account line must contain the codeword “//CN” followed by the 12- to 14-digit CNAPS code of the bank• The bank name is not required for this fi eld

Field 59:

• The Account line must contain the account number of the Benefi ciary Customer. It can be up to 32 digits long• Address fi eld should start in a new line after the name and should be preceded by the codeword “ADD.”• The name and address of the benefi ciary customer each should not exceed 30 sets Chinese characters in 4-digit

codes.* If they are in English, the name and address fi elds each cannot exceed 60 characters

Field 70:

• If the fi eld is in English characters, it must not exceed 60 characters. If the fi eld is in Chinese characters (4-digit code), it must not exceed 28 sets of 4-digit codes.

• When multiple payments are related to the same business deal, a Business Related Reference, which can be a invoice number, L/C number, or other voucher number, has to be included and prefi xed with /ROC/ on the fi rst line, for example: /ROC/A123456

56


Field 72:

• The fi rst line must contain the codeword listed in Appendix 1 to indicate the business category to comply with onshore regulatory requirement, for example, “/CGODDR/” indicates the payment for Cross-border Goods Trade; for partial or full return or cancellation of an original payment, PART or RETN should be used together with the codeword of original payment, for example, “/CGODDR/RETN/” indicates the return payment of an original Cross-border Goods Trade transaction

• No other additional information allowed for this fi eld

* SWIFT fi eld formats for name and address are 4 x 35.







/9876123



Manila, Philippines

:57C: Account with Institution //CN123456789012


/12349874

YONG CHU


BEIJING,

CHINA

:70: Remittance Information CONTRACT ABC-888


:72: Sender to Receiver Information /CSTRDR/

China — Onshore Example Using Field 57D:







/9876123



Manila, Philippines

:57D: Account with Institution //CN123456789012

57



/12349874

YONG CHU


BEIJING, CHINA

:70: Remittance Information /ROC/A123456

:71A: Details of Charges :SHA

:72: Sender to Receiver Information /CGODDR/TETN/


Field 21:

• When multiple payments are related to the same business deal, a Business Related Reference, which can be a invoice number, L/C number, or other voucher number, has to be included for this fi eld, for example: A123456

Field 32:


Field 53, 54, and 56:

• Should not be inputted, otherwise it will cause non-STP

Field 57:

• “D” format should be used• The Party Identifi er line must contain the codeword “//CN” followed by the 12-digit CNAPS code of the bank• Note that from November 2015, this is now a double slash rather than a single one• The bank name will not be verifi ed

Field 58:

• “D” format should be used• Enter a / “0” (zero) in Party Identifi er• Enter the name of benefi ciary bank

Field 72:

• The fi rst line must contain the codeword listed in Appendix 1 to indicate the business category to comply with onshore regulatory requirement, for example, “/BSTRDR/” indicates the payment for Cross-border Services Trade. For partial or full return or cancellation of an original payment, PART or RETN should be used together the codeword of original payment, for example, “/CGODDR/RETN/” indicates the return payment of an original Cross-border Goods Trade transaction.

• Other remittance information should proceed by /BNF/ on the second line

China — Onshore MT 202 Example 1



:21: Related Reference A121212



58



:58D: Bene% ciary Institution/123456

ABCBANKXXX


/BSTRDR/

/BNF/

//ABC-888

China — Onshore MT 202 Example 2

When using the return codeword details are provided in Field 72 only for MT202 messages



:21: Related Reference A123456




ABC BANK

:58D: Bene% ciary Institution /987654

DEF BANK


/CGODDR/RETN/

/BNF/CONTRACT NO

//ABC-888

GlobalPay.FX.RMB

In addition to the GlobalPay.RMB o2 ered out of Wells Fargo Bank, N.A. London Branch, an extension of the service that allows clients with limited RMB volumes initiate settlement from their USD accounts is available in the United States. In order for Wells Fargo to support your RMB (CNY) payments, the following requirements need to be met:

• You must agree with Wells Fargo to be a user of this service, accept the terms of the applicable Service Description, and sign the Acknowledgment Letter prior to sending any CNY-denominated payment orders to Wells Fargo.

• You will be required to call Wells Fargo’s FX trading desk to obtain the exchange rate and contract before sending a CNY payment order (phone number: 1-866-683-8307 or 1-704-410-3805). The exchange rates for CNY currency will not be available on Wells Fargo’s daily FX rate sheet used for other currencies in the GlobalPay.FX service.

• All CNY payment orders greater than US$500,000 equivalent, even with the exchange rate indicated in fi eld 72, will be subject to verifi cation of the rate by Wells Fargo’s FX Operations with Wells Fargo Global Foreign Exchange group. Payment order will only be processed after confi rmation of exchange rate has been received.

• CNY payment orders must be related to trade transaction and the codeword “/PSET/CN/TR” must be included in fi eld 72 of SWIFT MT103 or MT202.

• CNY-denominated payments can only be sent to benefi ciary banks located in the mainland of People’s Republic of China.

59


• Benefi ciaries of CNY payments must be commercial entities. PBOC regulations do not permit CNY payments to be received by individual persons in China.

• You must include an explicit authorization to debit its U.S. dollar account with Wells Fargo on all CNY payment orders.

• If the CNY payment order does not contain authorization to debit correspondent’s U.S. dollar account and the required codeword, Wells Fargo will cancel the payment and provide the reason for cancellation.

Appendix 1 — Codeword list for RMB Onshore payments (F72)

Codeword Message Type Business Category-CNAPS2

Description

/CGODDR/ MT103 Cross-border Goods Trade

/BGODDR/ MT202 Cross-border Goods Trade

/CSTRDR/ MT103 Cross-border Services Trade

/BSTRDR/ MT202 Cross-border Services Trade

/REMTDR/ MT103 Cross-border Payment (Individual)

/BNDDR/ MT202 Cross-border Capital Transfer (Bond)

/CCTFDR/ MT103 Cross-border Capital Transfer

/BCTFDR/ MT202 Cross-border Capital Transfer

/CCDNDR/ MT103 Charity Donation

/COCADR/ MT103 Other Account Transaction Debit

/BOCADR/ MT202 Other Account Transaction Debit

/BFTFDR/ MT202 Cross-border Funds Transfer Debit

/PART/ * MT103/MT202 Partial or Full Return

/RETN/ * MT103/MT202 Cancellation in Full Amount

* PART and RETN will be used together with other codewords to indicate the return or cancellation of original payment; for example, /CGODDR/RETN/ indicate the return for an original payment with purpose of Cross-border Goods Trade.

60


Appendix 2 — Format requirement on Payment orders sent via CyberPay1. O# shore Payments

Payment orders sent via CyberPay Customer Transfer

Transfer Currency/Amount/Value Date (32):• Currency should be “CNY”• The value date cannot be in the past and not further in the future than 30 days

Ordering Customer (50):• The Account line must contain the account number of the Ordering Customer• Must include the full name and address of the Ordering Customer

Ordering/Intermediary Institution (52 and 56):• Bank Identifi er should be provided, otherwise it will result in non-STP

Benefi ciary Customer (59):• The Account line must contain the account number of the Benefi ciary Customer• Must include the full name and address of the Benefi ciary Customer

Bank to Bank Information (72):• The use of this fi eld should be avoided. Any usage will result in non-STP

Payment orders sent via CyberPay Bank Transfer

Transfer Currency/Amount/Value Date (32)• Currency should be “CNY”• The value date cannot be in the past and not further in the future than 30 days

Ordering/Intermediary/Account With/Benefi ciary Institution (52, 56, 57, and 58):• Bank Identifi er should be provided, otherwise it will result in non-STP

Bank to Bank Information (72):• The use of this fi eld should be avoided. Any usage will result in non-STP

2. Onshore Payments

Payment orders sent via CyberPay Customer Transfer

Transfer Currency/Amount/Value Date (32)• Currency should be “CNY”• The Value Date cannot be in the past and not further in the future than 30 days

Ordering Customer (50):• The Account line must contain the account number of the Ordering Customer. It can be up to 32 digits long• Must include the full name and address of the Ordering Customer• Address fi eld should start in a new line after the name and should be preceded by the codeword “ADD.”• The name and address of the ordering customer together should not exceed 27 sets Chinese characters in


Intermediary Institution (56):• Use in the fi eld will result in a NSTP transaction

61


Benefi ciary Institution (57):• “C” or “D” format should be used• The Account line must contain the codeword “//CN” followed by the 12- to 14-digit CNAPS code of the bank• Note that from November 2015, this is now a double slash rather than a single one• The bank name will not be verifi ed

Benefi ciary Customer (59):• The Account line must contain the account number of the Benefi ciary Customer. It can be up to 32 digits long.• Address fi eld should start in a new line after the name and should be preceded by the codeword “ADD.”• The name and address of the benefi ciary customer together should not exceed 27 sets Chinese characters in


Benefi ciary Reference (70):• If the fi eld is in English characters, it must not exceed 60 characters. If the fi eld is in Chinese characters (4-digit

code), it must not exceed 28 sets of 4-digit codes. When multiple payments are related to the same business deal, a Business Related Reference, which can be a invoice number, L/C number, or other voucher number, has to be included and prefi xed with /ROC/ on the fi rst line, for example: /ROC/A123456

Bank to Bank Information (72):• This fi eld must contain the below codeword to indicate the business category: “/TRG/” for Cross-border Goods

Trade, “/TRS/” for Cross-border Services Trade• No other additional information allowed for this fi led

Payment orders sent via CyberPay Bank Transfer

Transfer Currency/Amount/Value Date (32)• Currency should be “CNY”• The Value Date cannot be in the past and not further in the future than 30 days

Benefi ciary Institution Reference (21):• When multiple payments are related to the same business deal, a Business Related Reference, which can be a

invoice number, L/C number, or other voucher number, has to be included for this fi eld

Intermediary Institution (56):• Use in the fi eld will result in a NSTP transaction

Account with Institution (57):• The Party Identifi er line must contain the codeword “//CN” followed by the 12- to 14-digit CNAPS code of the bank.• Note that from November 2015, this is now a double slash rather than a single one• The bank name will not be verifi ed

Benefi ciary Institution (58):• Enter “0” (zero) in Party Identifi er• Enter the name and address of benefi ciary bank

Bank to Bank Information (72):• This fi eld must contain the below codeword to indicate the business category: “/TRG/” for Cross-border Goods

Trade, “/TRS/” for Cross-border Services Trade

Notes

Notes

For more information:

Wells Fargo places your needs at the center of all endeavors. Your relationship manager or global payments specialist will:

• Take the time to fully understand your business.

• Deliver tailored solutions and exceptional service through a dedicated sta2 of product and industry experts.

• Help you succeed fi nancially in all of the markets where you do business.

They will be pleased to provide more information on global payments or other correspondent services.

Please visit our website at wellsfargo.com/com/international for more information on our global capabilities.

Wells Fargo & Company provides % nancial services in Europe through its subsidiaries. Banking services are provided through Wells Fargo Bank International (WFBI) and Wells Fargo Bank, N.A. London Branch, authorized by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA.

Member FDIC. Deposits held in non-U.S. branches are not FDIC insured.

© 2016 Wells Fargo Bank, N.A. All rights reserved. WCS-1241474 (07/16)

wellsfargo.com/com/international

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