Prerequisite and setup

Before you can use Banking Circle's Correspondent Banking solution, you must complete several essential setup steps. This document will guide you through each of these prerequisites, which apply to both API and SWIFT integration.

The key steps you'll need to complete are:

• RMA exchange - Exchange of Relationship Management Applications between you and us
• Opening a Nostro settlement account - Set up settlement accounts for each currency you want to process
• Updating the SSIs - Update your Standard Settlement Instructions to reflect our routing

Each step is detailed in the sections below to ensure a smooth implementation of your Correspondent Banking solution. To facilitate the process, we will also appoint a single point of contact for the implementation process. This person will work with you to coordinate the implementation process.

RMA exchange

Note : If you are using API connectivity, the RMA requirement depends on the services and flows implemented. Please confirm with your Relationship Manager or Integration Manager prior to starting the integration.

In this step, we will exchange the Relationship Management Applications (RMA) between you and us. This is a necessary step to ensure that we can process payments on your behalf.

There are two parts to this process:

1. We send an RMA request to you with the relevant BIC. Depending on approved rails, you may receive different BICs from us.

   • It will contain Authorization to Receive, which needs to be accepted by you
   • We will notify you once RMA request has been initiated from our production BIC code. Normally it should happen within 3 days.

2. You send RMA request to us

   • It should contain an Authorization to Send, which we will accept
   • Please inform us once initiated

Opening a Nostro settlement account

To use our Correspondent Banking solution, you will need to open a settlement (Nostro) account. This allows you to send and receive payments on behalf of your customers.

The account will be operated as a traditional correspondent banking arrangement between you and us, to settle the transactional flow for both payments and collections and to provide full reconciliation.

Key requirements:

• You need to open a settlement account for each currency in which you want to send and receive Correspondent Banking payments.
• We will communicate the details of the settlement accounts and your settlement instructions.
• You can request the opening of an account by reaching out to us, indicating the currencies needed.

Note on fees

Charges are normally taken from your Nostro settlement account matching your fee currency. It is possible to open a dedicated fee account, if preferred. We will automatically debit your account of choice monthly, in line with the agreed Business Terms.

Updating your SSIs

Once your Nostro settlement account(s) have been opened, you need to update your Standard Settlement Instructions (SSIs) to inform the market that you can be reached via us for the currencies in which you have opened a Nostro settlement account.

Required updates

We recommend updating the SWIFTRef SSI Data and Banker's Almanac. The information below is intended as a high-level overview rather than a detailed guide, so you may wish to liaise directly with the respective service providers for full instructions.

• SWIFTRef SSI Data

  Your institution should contact SWIFT to request revisions to the Swift Register, ensuring that the relevant categories (e.g., Treasury, FX, Options) and all applicable BICs (including the XXX-format BIC) are included. Once processed, an MT670 notification is automatically sent to the market.

• Banker's Almanac

  A designated contact at your institution should provide the required information directly to LexisNexis Solutions. After the changes are made, the updated details become accessible to all users with Banker's Almanac credentials.

Additional requirements

Depending on initial testing results with a standard SSI update, if you are a client under our UK BIC, you might be advised to additionally broadcast the SSI update with a MT670 broadcast message to SWIFT participants (market-wide) to ensure routing is correct.