Sanction Check
If sanction check is made applicable at Network Preferences, system initiates sanction processing. Additional check is performed to verify whether sanction check is applicable for the customer at customer maintenance (STDCIFCR) level. Sanction processing is done only if it is applicable for both network and customer.
On receiving External Sanction Check system response, sanction check status of the payment is updated.
- A – Approved: Sanction check is approved by the external system.
- S –Seized
- Interim – Interim status or approval with override is received from external system.
- R – Rejected: This indicates that the contract failed Sanction check.
- T – Timed out: Sanction check status is updated as T if no response is received from the external system within the stipulated time limit maintained for ECA system check system.
- R – Seize: Sanction check is seized by the external system.
If the sanction check response status for a payment transaction is ‘Approved’, then further processing continues.
If the sanction check response status of the transaction is ’Interim’ or ’Rejected’ or ‘Timed Out’, then transaction is logged in Sanction Check Exception Queue. If External system reject code is marked for auto cancellation in sanction system maintenance, transaction is automatically canceled.
If External system reject code is marked for auto cancellation in sanction system maintenance, transaction is automatically canceled.
If sanctions status is 'Seized’ no further actions are allowed for the transaction. You can be parametrize for a sanction system whether to post seizure accounting or not.
Seizure GL to be mentioned.
| Direction | Transaction Type | Debit Account | Credit Account | Subsequent Processing |
|---|---|---|---|---|
| Outbound |
Book Transfer Cross Border MT SWIFT CBPRPlus RTGS FIN TARGET2 ISO EU SEPA Credit |
Customer Account | Compliance GL | Held. Will not be dispatched. |
| Outbound | EU SEPA Direct Debit | Nostro/ Clearing GL | Compliance GL | Held. Will not be dispatched. |
| Inbound |
Book Transfer Cross Border MT SWIFT CBPRPlus RTGS FIN TARGET2 ISO EU SEPA Credit |
Nostro/ Clearing GL | Compliance GL | Held |
| Inbound | EU SEPA Direct Debit | Customer Account | Compliance GL | Held. And, pre settlement reject pacs.002 will be sent out. |
If the Sanctions Check done on booking date fails, then the transaction is processed on booking date itself with seizure entries, even if the activation date is derived as future dated.
Any transaction in Sanction Check Queue at the end of the day which is not part of a batch must be ring-fenced in the customer account. This is required only for Sanctions hold on Activation Date only and is not applicable for future valued transactions on booking date.
The job PQDSNCKQ does ring- fencing of SC pending transactions. The job can be configured in Payments Auto job parameters screen to run at a particular time during end of day
ECA request generated for SC pending transactions with ‘Available balance Check’ marked as not required so that the transaction amount is force blocked in the customer’s account.
Parent topic: Common Processes