Sanctions Check

'Sanctions Check Required' flag at the Source Network Preference is referred for the Host code, Source code – Source code of the Return transaction, Network code, and Transaction Type as 'Incoming'.

If the flag is set as Yes, then the sanction system is picked up from the Sanction System mapping maintenance, Default Sanctions System / Network specific Sanction System.

A Sanctions request XML will be prepared and is sent to the Sanction System. A record is logged in to the Sanction Queue. The request is in Sanction Queue till the final response (Accept / Reject / Seizure) is received.

Based on the response from the sanctions system, the below processing is done:

Approved

If the response is received on the same day, the Sanctions Check the status of the Return transaction is updated as ‘Approved’ and the processing continues.
If the response is received on a later date, the Return transaction Activation date is updated as the current branch date.

Rejected

- The return transaction will be retained in the Sanction Check Queue with ‘Rejected’ status for the user to manually cancel the Return transaction even if auto-cancel is enabled.

Seized

If seizure accounting is applicable for the transaction, then the following accounting entries are passed.

Event	Dr/Cr	Account	Account Type	Account Tag
SRDZ	Dr	Customer Account	Account	Return Settlement Amount in account currency
SRDZ	Cr	Intermediary GL	GL	Return Settlement Amount
SRCZ	Dr	Intermediary GL	GL	Return Settlement Amount
SRCZ	Cr	Seizure GL	GL	Return Settlement Amount

Both original transaction status and Return transaction status are updated as 'Seized'. No further processing or messaging is applicable for Seized transactions.

Note:

SC Ring-Fencing is done on CBPRPlus and TARGET2 ISO for the outbound Payment Settled Return (pacs.004) transactions.

Parent topic: Outbound Return Processing