Iceland: Implementation of FINCopy service for cash payments

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Reference number:	A12029
Category:	Cash
Market:	Iceland
Last updated:	07/02/2012
Languages:	English French German

Further to our Announcement A10032, dated 23 February 2010, and a part of a new service offering by the Central Bank of Iceland to its participants, effective

27 February 2012

Clearstream will activate the SWIFT FINCopy service for domestic Icelandic cash payment instructions. The FINCopy service is a value-added feature of FIN that enables the sender of a message to trigger a copy to a copy destination for authorisation or further processing. This new feature will allow local participants using the new service to have additional information to process incoming payments.

Impact on customer payment instructions

Payments made in the Icelandic RTGS system are made between participants and credited to Icelandic cash accounts in the cash system. Currently, the system does not provide any information in bookings to the counterparty where the recipient in Iceland is not the final beneficiary.

The Central Bank of Iceland and its participants are implementing the SWIFT Fin Copy service in the Icelandic RTGS payment system to eliminate differences in the execution of payment instructions. This new service will allow intermediaries to have sufficient information to process the incoming payments.

Note: This service is only available to banks being part of the ISG service. If the receiving bank has not contracted such service with SWIFT the payment instruction will be rejected.

Instruction specifications

Customer cash payment instruction specifications remain unchanged; A summary of the cash payment instructions can be found below:

SWIFT MT200/202 message formats

Case 1: You are paying to a final beneficial owner who has an account in the Icelandic RTGS system. The RTGS system will deposit the funds into the account specified in field :58a:

M = Mandatory. O = Optional. CM = CBL Mandatory. C = Conditional.

M/O	Tag	Field name	Content/options	Remarks
M	:20:	Sender's Reference	16x
M	:21:	Related Reference	16x
M	:32A:	Value Date, Currency, Interbank Settled Amount	6!n3!a15d
M	:52a:	Ordering Institution	Option A or D
CM	:53a:	Sender's Correspondent	Option A, B or D
O	:56a:	Intermediary Institution	Option A or D	Must be blank; ignored by CBL and CBI
CM	:57a:	Account with Institution	Option A or D	Ignored by CBI. For CBL must be an Iceland ISG participant
M	:58a:	Beneficiary Customer	Option A or no letter	Must contain in the account line, the Icelandic beneficiary's IBAN (the BIC may be included in the second line)

Case 2: You are paying to an intermediary in Iceland. The Icelandic RTGS system will deposit the funds into the account specified in field :57a:; the beneficiary is specified in field :58a:

M = Mandatory. O = Optional. CM = CBL Mandatory. C = Conditional.

M/O	Tag	Field name	Content/options	Remarks
M	:20:	Sender's Reference	16x
M	:21:	Related Reference	16x
M	:32A:	Value Date, Currency, Interbank Settled Amount	6!n3!a15d
M	:52a:	Ordering Institution	Option A or D
CM	:53a:	Sender's Correspondent	Option A, B or D
O	:56a:	Intermediary Institution	Option A or D	Ignored by CBI. For CBL must be an Iceland ISG participant
CM	:57a:	Account with Institution	Option A or D	Must contain, in the account line, the Icelandic intermediary's IBAN and BIC (in the second line)
M	:58a:	Beneficiary Customer	Option A or no letter	Must contain in the account line, the Icelandic beneficiary's account number or IBAN (the BIC may be included in the second line)

CreationOnline cash instruction formats

Case 1: You are paying to a final beneficial owner who has an account in the Icelandic RTGS system. The Icelandic RTGS system will deposit the funds into the account specified in the Beneficiary Inst./Cust. field

M = Mandatory. O = Optional. CM = CBL Mandatory. C = Conditional.

M/O	Field name	Remarks
M	Sender's Reference
M	Account
M	Amount
M	Requested Value Date
M	Ordering Institution
O	Intermediary Institution	Must be blank; ignored by CBL and CBI
CM	Account with Institution	Ignored by CBI; For CBL must be an Iceland ISG participant
M	Beneficiary Inst./Cust.	Must contain, in the account line, the Icelandic beneficiary's IBAN and BIC (BIC in the second line of this field)

Case 2: You are paying to an intermediary in Iceland. The RTGS system will deposit the funds into the account specified in the Account with Institution field; the beneficiary is specified in the Beneficiary Inst./Cust. field

M = Mandatory. O = Optional. CM = CBL Mandatory. C = Conditional.

M/O	Field name	Remarks
M	Sender's Reference
M	Account
M	Amount
M	Requested Value Date
M	Ordering Institution
O	Intermediary Institution	Ignored by CBI; For CBL must be an Iceland ISG participant
CM	Account with Institution	Must contain, in the account line, the Icelandic beneficiary's IBAN and BIC (BIC in the second line of this field)
M	Beneficiary Inst./Cust.	Must contain, in the account line, the Icelandic beneficiary's account number IBAN (the BIC may be included in the second line of this field)

Details of fields particularly important for acceptance at the CBI

Account With Institution and Beneficiary Customer

These input fields (fields :57: or :58: in SWIFT MT200/202; Account with Institution or Beneficiary Inst./ Cust. in CreationOnline) contain the IBAN of the recipient customer or intermediary in Iceland together with the BIC code. The IBAN must be an Icelandic IBAN and must not contain any spaces between the characters. If the IBAN is not correct, the message will be rejected by the CBI system and followed by a rejection from CBL. The fields must be formatted as follows:

/IS330101260000010907294119

Note: The legal structure of the IBAN in Iceland is as follows: ISxxbbbbhhrrrrrrkkkkkkkkkk

where:


IS	=	ISO country code for Iceland (IS).
xx	=	Check digits calculated with checksum ISO 7064 modulus 97-10.
bbbb	=	Bank ID number (unique to each bank and branch).
hh	=	Sort code (often = 26).
rrrrrr	=	Account number (bbbbhhrrrrrr make up the actual unique account code).
kkkkkkkkkk	=	National ID number (unique to each legal entity in Iceland, whether individual person or company; sometimes referred to as social security number).

Clearstream's Iceland cash account details

Currency:	Icelandic Krona (ISK)
CCB name:	Central Bank of Iceland, Reykjavik
CBL account:	0001 26 04 0680
CBL IBAN:	IS71 0001 2604 0680 4307 0998 40
SWIFT address:	SISLISREXXX

Further information

For further information, please contact Clearstream Banking Customer Service or your Relationship Officer.

Attachments
Title	Type	Size
Appendix: Examples of cash instructions	pdf	96,6 kB

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