4.1.2 Detailed Flow

Existing functionality:

• Currently system supports Applicant as Counter party of Guarantee and SBLC.
• Party type will be defaulted as APP on Product default.

System enhanced with below changes:

• System defaults Applicant as counter party of Guarantee. Counter party can be modified as Accountee or Applicant Bank.
• When Accountee or Applicant Bank is counter party:
  • Settlement account of Accountee or APB should be considered for Charge, Commission, Tax and Collateral
  • Limits of Accountee or APB should be considered on Default Limits with Limit Tracking Required checked
  • Debit advices should be generated accordingly
  • Below advises should be sent to Accountee or Applicant Bank
    • Cash Collateral advice ( LC_CASH_COL_ADV )
    • GUA_ACK_ADVICE
    • GUA_RELEASE_ADV
    • GUA_CLAIM_ADV
    • Trade Envelope Message should not be generated to Applicant Bank.
  • No impact on other advices
• When Accountee is counter party :
  • Customer Reference Number should be mandatory when TRADE_ENVELOPE message is configured and Accountee is a Counter Party
    • MT798 Guarantee Issuance notification messages (GUAR_ISSUE_NOTIF_INDEX)
      • TAG 21A Customer Reference Number to be populated with Customer Reference Number of Accountee
    • Trade Envelope Message should be generated to Accountee if Accountee is a Corporate Customer

      Guarantee	MT798 - B2C
      Guarantee issuance	MT760/762
      Guarantee amendment	MT767/764/739/787/766/769
      Guarantee claim	MT765/779
      Guarantee claim amendment	MT765/777

• Similar to applicant, below validations are introduced when APB/ACC is counter party.
  • Restrict amendment of counter party during Guarantee amendment (LCDGUAMD)
  • Customer reference to be provided for counter party.
  • Restrict amendment of party description for APB or ACC during Guarantee & SBLC issuance
• During Split Settlement of Charges and Commission:
  • Currently system considers APP/BEN to process Charges or Commission during Guarantee and SBLC issuance or Guarantee Amendment
  • System enhanced to consider counter party of the contract namely ACC/BEN or APB/BEN as applicable
• During Split Settlement of Collateral:
  • Currently system validates Split settlement account should be Counter party account.
  • The same will be applicable when counter party is Accountee or Applicant Bank

• UI Prototype
  
• UI Elements
  
• UI Error Messages