Citi’s Capability for SWIFT MT798 - Citigroup

1 Transaction ServicesTreasury and Trade SolutionsCiti s Capability for SWIFT MT798 Frequently Asked Questions2 Treasury and Trade SolutionsWhat is the MT798 ? SWIFT s Trade for Corporates, the MT798 , offers corporates the use of established interbank industry standards in Trade Finance through structured messages between corporates and banks. MT798 , also referred to as The Trade Envelope, is an authenticated message used to exchange Trade data between corporates and member banks of the SWIFT system. MT798 provides a multibank gateway through a centralized and secure channel for customers working with two or more is MT798 FileAct? SWIFT FileAct is a message protocol that allows the secure and reliable transfer of files and is typically used to exchange batches of structured financial messages and large reports. In Trade, citi utilizes the FileAct protocol to exchange document files with our clients.

2 Some examples include the presentation of country-specific regulatory documents for the issuance of an Import LC, or presentation of documents under an LC under a direct presentation types of Trade data can be exchanged using MT798 ? The MT798 message allows for the exchange of: Import Letters of Credit Export Letters of Credit Guarantees/Standby Letters of Credit Related sub-messages (Existing category 7 messages)Trade for Corporates in s bank(s) SWIFT flows FIN MT798 SWIFT flows FIN MT7xxSWIFT flows FileActExporter s bank(s)MT700 ExporterMT798sMT798sDocuments (via FileAct)SWIFTNetSWIFTNetSWIFTNet123451. Importer sends Application for a Letter of Credit ( MT798 ) to its bank either via FIN or Importer s bank s application extracts the appropriate fields from the MT798 , putting them into an Issue of Letter of Credit (MT700) and sends them to the Exporter s Exporter s bank s application forwards the MT700 inside an MT798 to the Exporter as an Advice of Letter of Exporter sends documents via FileAct to its bank ( , prechecking).

3 5. Exporter s bank can utilize FileAct to send documents to the and Trade Solutions Corporates can enjoy the benefits of their access to SWIFT to manage all of their Trade Finance transactions with multiple banks on one platform. Corporates will improve working capital through a centralized multibank view of their trade transactions worldwide using one of the SWIFT Ready partner applications. For some corporates who can leverage their SWIFT connectivity implemented for cash transactions, they will also save time and money as they move away from proprietary tools and manual processes. Allows for a single channel, centralization and standardization while working with multiple banks. Ensures secure and reliable connectivity between banks and corporates. MT798 solution is Technology independent ( SWIFT Standard) and Channel independent (corporates can use Internet, SWIFT or both).

4 Corporates can use their existing setups with banks for exchanging MT798 messages. Corporates can enjoy this service without an additional fee to the MT798 Connectivity solutions for customersCorporate ERP SystemCorporate s Own SWIFT InterfaceVendor ReadySWIFTNetService BureauThird-Party Service BureauCorporate s Own In-house DevelopmentVendor ReadyTrade PortalCorporate Manual Access to Vendor Ready PortalFront-Office Trade ApplicationFlexible ConnectivityOptionsCorporate Banking RelationsCitibankCiti s InternalTrade SystemMT798 CitiMT798sReceive FromSend ToOrOrOrOrBank A InternalTrade SystemMT798 Bank ABank ABank B InternalTrade SystemMT798 Bank BBank BWhat are the benefits to corporates of using SWIFT MT798 ?4 Treasury and Trade SolutionsIs MT798 the same as Bolero? Although SWIFT MT798 and Bolero both offer a Trade Multibank solution, they have different offerings and are not the same.

5 Below is a side-by-side comparison of SWIFT MT798 and Bolero, which helps to illustrate the ways in which the two functionalities MT798 BoleroThe new SWIFT Message Type 798 is an envelope in which most of the standard trade 700 messages can be enclosed. For example, a 700-message issuance of a Documentary LC can be enclosed in an MT798 . These messages utilize the SWIFT communication flow used today by banks for Trade, Cash and is an independent vendor with a hosted solution. Product offerings are Import/Export Letters of Credit and Guarantees/Standby Letters of is a bank-owned platform and bank usage fees are based on number of markets to Corporate clients. Banks pay fees to access and communicate with these would typically need a third-party vendor application and SWIFT access to initiate and receive the MT798 Corporates and Banks need to access the Bolero-hosted web-based portal to communicate.

6 Participants must adhere to the Bolero Rulebook, which defines the Rules of is primarily a bank-to-bank communications tool. Cash messages have included the Corporate/Bank flows. Trade message flows with Corporates is a newer originally began as a SWIFT initiative. Bolero is used only for Trade who currently have SWIFT cash flows with a bank may be interested in expanding to Trade. Corporates who use more than five banks for their Trade flows and have sizeable transaction flows might be good who use more than five banks for their Trade flows and have sizeable transaction flows might be good banks across the globe are SWIFT enabled. Some banks are MT798 capable today, while others have stated that they plan to be ready in the next nine to 18 months. Corporate clients are also implementing or considering the banks are accessing Bolero has been MT798 enabled since 2012.

7 We would like this to be the preferred multibanking has engaged with Bolero as well as other third-party vendors to support the needs of our and Trade SolutionsHow do corporates get access to MT798 ? Corporates typically need to implement MT798 capabilities either through in-house development or a vendor product to send and receive the MT798 messages. Moreover, corporates must be connected to SWIFT network since MT798 is a standard SWIFT ModelThe current implementation model for the corporate client assumes that either a client in-house solution or a third- party vendor will facilitate the various vendors may be able to facilitate MT798 for corporates, the following vendors provide Corporates with products or platforms and are currently certified by Global Trade Corporation GlobalJacob Katsman, CEO 2727 Steeles Ave.

8 West, 4th Floor Toronto, ON, Canada, M3J 3G9 Tel: +1 (416) 661-8520 Mobile: +1 (416) 627-8520 E-mail: Website: Misys Solutions for BankingAmericasBryan Watson 1180 Avenue of the Americas, 5th Floor New York, NY 10036, USA Tel: +1 (212) 898-9431 Mobile: +1 (646) 964-8457 E-mail: Ekbote E-mail: Coles E-mail: Teixeira E-mail: other SWIFT MT798 Vendors, please refer to SWIFT s website MT798 messages can corporates send to bank? (Corporate-to-Bank)(C2B) Import Transaction Flow: Application for issuance of Documentary Credit ( MT798 /770/700/701) Request for amendment of Documentary Credit ( MT798 /772/707) Response to Advice of Discrepancy ( MT798 /749)(C2B) Export Transaction Flow: Advice of Acceptance/Refusal of Amendment ( MT798 /735) Request for Transfer of a Documentary Credit ( MT798 /722)(C2B) Common Group Transaction Flow: Free Format Message ( MT798 /788/799)(C2B) Guarantee/Standby Letter of Credit Transaction Flow.

9 Application for issuance of Guarantee/Standby Letter of Credit ( MT798 /761 or 784 & MT798 /760) Request for amendment of Guarantee/Standby Letter of Credit ( MT798 /763 or 786 & MT798 /767) Response to extend or pay Guarantee/Standby Letter of Credit ( MT798 /778) Claim for payment under Guarantee/Standby Letter of Credit ( MT798 /712) Request for Guarantee/Standby Letter of Credit Reduction/Release ( MT798 /783)6 Treasury and Trade Solutions(B2C) Import Transaction Flow: Notification of issuance of Documentary Credit ( MT798 /771/700/701) Notification of amendment of Documentary Credit ( MT798 /773/707) Notification of Acceptance/Refusal of Amendment ( MT798 /736) Advice of Discrepancy ( MT798 /748/750) Notification of Advice of Payment/Acceptance/Negotiation ( MT798 /753/754) Notification of Advice of Discharge ( MT798 /731/732) Notification of Advice of Refusal ( MT798 /733/734) Notification of Advice of Reimbursement or Payment ( MT798 /755/756) Settlement of Import Documentary Credit ( MT798 /757)(B2C) Export Transaction Flow.

10 Advice of Documentary Credit ( MT798 /774/700/701) Advice of Amendment of Documentary Credit ( MT798 /776/707) Advice of Third Bank Documentary Credit ( MT798 /780/710/711) Response to Documentary Credit presentation ( MT798 /737) Notification of authorization to Pay, Accept or Negotiate ( MT798 /751/752) Notification of Advice of Payment/Acceptance/Negotiation ( MT798 /753/754) Notification of Advice of Discharge ( MT798 /731/732) Notification of Advice of Refusal ( MT798 /733/734) Notification of Advice of Reimbursement or Payment ( MT798 /755/756) Advice of Transfer Documentary Credit ( MT798 /782) Settlement of Export Documentary Credit ( MT798 /758)(B2C) Guarantee/Standby Letter of Credit Transaction Flow: Notification of Guarantee/Standby Letter of Credit ( MT798 /762 or 785 & MT798 /760) Notification of amendment of Guarantee/Standby Letter of Credit ( MT798 /764 or 786 & MT798 /767) Advice of issued Guarantee/Standby Letter of Credit ( MT798 /745 or 746 & MT798 /760) Advice of amended Guarantee/Standby Letter of Credit ( MT798 /743 or 744 & MT798 /767) Query to extend or pay Guarantee/Standby Letter of Credit ( MT798 /777) Acknowledgment of claim for payment under Guarantee/Standby Letter of Credit ( MT798 /714) Notification of claim for payment of Guarantee/Standby Letter of Credit ( MT798 /779) Settlement of Guarantee/Standby Letter of Credit claim for payment and/or charges ( MT798 /781) Advice of Guarantee/Standby Letter of Credit Reduction or Release (MT 798/ 766/ 769)(B2C)