1. Payments Core User Guide
  2. Payments Core Processes
  3. EU Payer Regulatory Maintenance
  4. EU Payer - Rules Evaluation and Processing

EU Payer - Rules Evaluation and Processing

System evaluates the role it plays vis-à-vis each Payment as either a Payer or a Payee or an Intermediary.
  • When the Default Monitoring flag is turned ON, the Payment is always monitored.
  • When the EU Payment Monitoring flag is turned ON, the Payment is monitored only when the PSP plays the role as a Payer or as an Intermediary and the Payee on the payment chain is within the EU.

Depending on the role scenario the PSP plays in the payment chain, the rules from the appropriate Rule Maintenance are evaluated & applied.

Role Role of PSP Rule Maintenance used for Evaluation
Frankfurt Branch Receives a Payment from a PSP in Paris for Credit to its Customer Payee PSP

Branch: Frankfurt Role

Scenario: PSP - Payee
Frankfurt Branch Sends a Payment to a PSP in Madrid for Credit to Madrid’s Customer Payer PSP

Branch: Frankfurt Role

Scenario: PSP - Payer
Frankfurt Branch Receives a Payment from a PSP in Dublin for Payment to a PSP in Singapore for Credit to Singapore’s Customer Intermediary PSP

Branch: Frankfurt Role

Scenario: PSP - Intermediary
Each of the rules within the Rule Maintenance is evaluated in the Priority order it is set-up. To evaluate each rule, the possible set of Payment Elements are derived. When a rule is satisfied and required information available or not opted, the STP Action is applied.
  • If the STP Action is Suspend, the Payment is suspended and moves to EU Payer Compliance Queue. You can repair the details and re-submit for processing from the queue. For more details on queue processing, refer the Exception Queues User Guide.

    Note:

    Except ‘Debit account’ field for outbound payments (which are not pass through payments) and ‘credit account’ for inbound payments, all the information fields can be modified.
  • If the STP Action is Report – Missing Information, then the Payment is scanned for Missing Information as per the Configuration against the Rule. If any of the information that is required is found to be missing, then the Payment details are logged in a data store for Ex-post monitoring purposes, but the Payment is allowed to STP.
  • If the STP Action is Cancel - Payment is auto-canceled. FX unwind (if applicable) and Sanctions gets completed before cancellation.

The EU Payer Rules are evaluated just before the Sanctions Screening step in the Payments flow.

When the STP Action on the rule is to suspend the Payment, the Payment is moved to EU Payer Compliance Queue. On repair action of the payment from EU Payer compliance queue, again EU payer rules are evaluated and if it clears the EU Payer validations, then the Payment moves onto the Sanction Screening.

The EU Payer Rules are also evaluated each time a Payment is released from Warehouse.

This is to take into account, the possible changes in the underlying Maintenance/Setups/Configurations between the day of Booking and the day of Release from Warehouse.

For example, there could be changes in the Threshold Amount, list of ML/TF Countries or the list of PSPs with a Negative Compliance Record, or even changes to the Set-up of Meaningless Words.
  • Missing Value
  • Repeated Characters
  • Meaningless Words

For Missing information validation, system validates whether Payer/Payee Account is missing based on the preferences maintained in the EU payer rule screen header.

Error codes are available to differentiate which kind of exception is encountered during processing.

Similarly, for Name & Address field the related preferences are to be checked while validating for missing information for Name and Address fields.

Parent topic: EU Payer Regulatory Maintenance