Alain Raes, Chief Executive, Asia Pacific & EMEA, SWIFT

SWIFT Welcome:Developing a sustainable financial system with Bangladesh

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SWIFT in Bangladesh

Double digit growth: 32.7% year on year

Last Peak day (Apr 30): 24,325 FIN Msg

Since 1994 – 56 live institutions in 2014

Highest traffic in Trade and Payments

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Bangladesh is ranked 16th in APAC for total sent FIN Traffic and 14th for

received FIN Traffic

SWIFT total FIN traffic in Bangladesh

Weight per market in

Bangladesh YTD 2014

(traffic sent)

56.1% Trade (5.5%

growth)

37.4% Payments

(7.3% growth)

1.3% Treasury

(-1.2% growth)

3.1% Securities

(38.3% growth)

Average of 10% FIN growth per year from 50 + banks connected

SWIFT Payments Update 4

Payments Market InfrastructuresSystems live on SWIFT

75 HVP systems (>240 Million pymts/year in 2014)29 LVP systems (>20 Billion pymts/year in 2014)

2000+ banks in 90+ countries

Central & Eastern EuropeAlbaniaAzerbaijanBosnia & HerzegovinaBulgariaCroatiaHungaryRomaniaRussiaLatviaPolandSerbia

North AmericaCanada

Central & Latin AmericaBahamasBarbadosChileCMCAColombia (service bureau)Dominican Rep. ECCBEl SalvadorGuatemalaHondurasTrinidad & Tobago Venezuela

Western EuropeDenmarkIceland NorwaySwedenSwitzerland UK

EurozoneTarget 2EBA Clearing (2 HVP, 1 LVP)AustriaBelgiumGermanyGreeceItaly (2 LVP) SpainIrelandThe Netherlands

Middle EastLebanonBahrainIsraelJordanKuwaitPalestineQatar

AngolaAlgeriaBotswanaBEACCOMESAEgyptGambiaGhana

KenyaLesothoMauritiusMoroccoNamibiaNigeriaSierra LeoneSouth AfricaSADC

Swaziland TanzaniaTunisiaUganda ZambiaZimbabwe BCEAO

Status_May 2014

HVP only

LVP only

Both HVP and LVP

GlobalIPFAEurogiro

Africa

Asia Pacific - LIVE

AustraliaFijiHong KongMacaoNew ZealandPhilippinesSingaporeSri LankaThailandTaiwan (USD & RMB)Papua New Guinea

Asia Pacific - NEWBrunei (Q3, 2014)India (end 2014)Malaysia (2015)

Principles for Financial Market Infrastructures (PFMIs)

High Value Payment Systems

Low Value Payment Systems

Central Counterparties

Central Securities Depositories

Trade Repositories

Foster financial stability

Limit systemic risk

Increase safety

Support greater

efficiency

• Published by CPSS-IOSCO• 24 principles• Issued for consultation in 2011• To be applied December 2012

Critical Service Providers

"With these new principles, authorities have a good basis on which to ensure a safe and stable financial infrastructure. It is essential that authorities adopt the principles, and FMIs observe them, as soon as possible". - Paul Tucker, Deputy Governor, Financial Stability, Bank of England and CPSS Chairman

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Corporate

Accountspayable

Accountsreceivable

Treasury

Other

Standardised

gateway

SWIFT for Corporates a single, standardised gateway

Corporate

e-banking Y

host to host X

e-banking Z

VAN

Internet

Leased line

Accountspayable

Accountsreceivable

Treasury

Other

Multiple bank channels Single, standardised gateway

– Lower cost– Transparency and view on

cash– Increased control and security– Reduced risk

– High cost– No global visibility on cash– Impossible to centralise– Challenge of multiple

connectivity channels and formats

FATF 16

Quality

Business intelligence for Compliance

Sanctions list service

Sanctions KYC AML

Processing services

Traffic analysis

Standards

Data repository

KYC registry

AML testing & tuning

Scree-ning

TestingTraffic

restriction (RMA)

Financial Crime Compliance Services RoadmapLiveDevelopmentQualificationExploration

8SOURCE ： International Chamber of Commerce

BPO : A new payment term instrument that supports increase demand for trade financing

1950

1960

1970

1980

1990

2000

2010

2020

0102030405060708090

100

OALC

USD 2 trillion

USD 6 trillion

USD 33 trillion

Commonchallengesuniquesolutions