3.4 Exceptions

This topic helps you quickly get acquainted with the Exceptions process.

The Export Collection Update Islamic request, before the task moves to the approval stage, the application will validate the Amount Block, KYC and AML. A failure in validation of any of them, the task will reach exception stage for further approval for the exceptions.

Exception - Amount Block

As part of amount block validation, application will check if sufficient balance is available in the account to create an amount block. On hand-off, system will debit the blocked account to the extent earmark and credit charges/ commission account in case of charges block or credit the amount in suspense account for earmarks created for collateral.

The transactions that have failed amount block due to non-availability of amount in respective account will reach the amount block exception stage

Log in into OBTFPMCS application, amount block exception queue. Amount block validation failed tasks for trade transactions will be listed in the queue. Open the task to view summary of updated available fields with values.

On Approval, system should not release the Amount Block against each applicable account and system should handoff the “Amount Block Reference Number “to the back office. On successful handoff, back office will make use of these “Amount Block Reference Number” to release the Amount Block done in the mid office (OBTFPMCS) and should debit the CASA account from the Back office.

Exception is created when sufficient balance is not available for blocking the settlement account and the same can be addressed by the approver in the following ways:

Approve:
  • Settlement amount will be funded (outside of this process)
  • Allow account to be overdrawn during hand-off
Refer:
  • Refer back to DE providing alternate settlement account to be used for block.
  • Different collateral to be mapped or utilize lines in place of collateral.

Reject:

Reject the transaction due to non-availability of sufficient balance in settlement account

Amount Bock Exception

This section will display the amount block exception details.

Summary
Description of amountblockexceptionsummary.png follows
Description of the illustration amountblockexceptionsummary.png

Tiles Displayed in Summary:
  • Main Details - User can view and modify details about application details and LC details, if required.
  • Party Details - User can view and modify party details like beneficiary, advising bank etc., if required
  • Limits and Collaterals - User can view and modify limits and collateral details, if required.
  • Charge Details - User can view and modify details provided for charges, if required.:
  1. Click Approve. to approve thw export booking amount bolck exception check.

For more information on Action Buttons, refer to the field description table below.

Table 3-34 Amount Bock Exception - Action Buttons - Field Description

Field Description
Cancel Cancel the Export Collection Update Booking Amount Block Exception check.
Hold The details provided will be saved and status will be on hold.

This option is used, if there are any pending information yet to be received from applicant.
Reject On click of Reject, user must select a Reject Reason from a list displayed by the system.

Reject Codes are:

  • R1- Documents missing
  • R2- Signature Missing
  • R3- Input Error
  • R4- Insufficient Balance/Limits
  • R5 - Others

Select a Reject code and give a Reject Description.
This reject reason will be available in the remarks window throughout the process.

Refer Select a Refer Reason from the values displayed by the system.

User can refer the task back to the Data Enrichment user.User must select a Refer Reason from the values displayed by the system.

Refer Codes are:

  • R1- Documents missing
  • R2- Signature Missing
  • R3- Input Error
  • R4- Insufficient Balance/Limits
  • R5 - Others
Approve On approve, application must validate for all mandatory field values, and task must move to the next logical stage.
Back Task moves to previous logical step.

Exception - Know Your Customer (KYC)

As part of KYC validation, application will check if necessary KYC documents are available and valid for the applicant. The transactions that have failed KYC due to non-availability / expired KYC verification will reach KYC exception stage.
  1. Log in into OBTFPMCS application, KYC exception queue. KYC exception failed tasks for Trade Finance transactions will be listed in your queue.
  2. Open the task, to see summary tiles that display a summary of available updated fields with values.

    User can pick up a transaction and do the following actions:

    Approve
    • After changing the KYC status in the back end application (outside this process).
    • Without changing the KYC status in the back end application.
    • Reject (with appropriate reject reason).
Summary

Figure 3-23 Exception - Know Your Customer (KYC) Summary


Description of Figure 3-23 follows
Description of "Figure 3-23 Exception - Know Your Customer (KYC) Summary"

Tiles Displayed in Summary:
  • Main Details - User can view details about application details and LC details.
  • Party Details - User can view party details like applicant, advising bank etc.
  • Document Details - User can view document details.
  • Draft Details - User can view the draft details.
  • Charges - User can view charge details.
  • Maturity Details - User can view the maturity details.
  • Advices - User can view the advices.
  • Payment Details - User can view the payment details.
  • FX Linkage - User can view the FX Linkage details.
  • Settlement Details - User can view the settlement details.
  • Message Preview - User can view the preview of the simulating message to the remitting bank.
  • Compliance - User can view compliance details. The status must be verified for KYC and to be initiated for AML and Sanction Checks.

For more information on Action Buttons, refer to the field description table below.

Table 3-35 Exception - Know Your Customer (KYC) Summary - Action Buttons - Field Description

Field Description
Documents View/Upload the required document.
Remarks Specify any additional information regarding the collection. This information can be viewed by other users processing the request.

Content from Remarks field should be handed off to Remarks field in Backend application.
Overrides Click to view the overrides accepted by the user.
Customer Instructions Click to view/ input the following
  • Standard Instructions – In this section, the system will populate the details of Standard Instructions maintained for the customer. User will not be able to edit this.
  • Transaction Level Instructions – In this section, OBTFPMCS user can input any Customer Instructions received as part of transaction processing. This section will be enabled only for customer initiated transactions.
Common Group Message Click Common Group Message button, to send MT799 and MT999 messages from within the task.
View Collection Enables the user to view the latest collection values displayed in the respective fields.
Reject On click of Reject, user must select a Reject Reason from a list displayed by the system.

Reject Codes are:

  • R1- Documents missing
  • R2- Signature Missing
  • R3- Input Error
  • R4- Insufficient Balance/Limits
  • R5 - Others

Select a Reject code and give a Reject Description.
This reject reason will be available in the remarks window throughout the process.
Refer Select a Refer Reason from the values displayed by the system.

Refer Codes are:

  • R1- Documents missing
  • R2- Signature Missing
  • R3- Input Error
  • R4- Insufficient Balance/Limits
  • R5 - Others
Hold The details provided will be saved and status will be on hold.User must update the remarks on the reason for holding the task.

This option is used, if there are any pending information yet to be received from applicant.
Approve On approve, application must validate for all mandatory field values, and task must move to the next logical stage. If there are more approvers, task will move to the next approver for approval. If there are no more approvers, the transaction is handed off to the back end system for posting.
Back Task moves to previous logical step.

Exception - Limit Check/Credit

The transactions that have failed limit check due to non-availability of limits will be available in limit check exception queue for further handling.
  1. Log in into OBTFPMCS application, limit check exception queue. Limit check exception failed tasks for Trade Finance transactions must be listed in your queue.
  2. Click My Task. The summary tiles displays summary of important fields with values.

Limit check Exception approver can do the following actions:

Approve
  • Limit enhanced in the back end (outside this process).
  • Without enhancing limit in the back end.
Refer
  • Refer back to DE providing alternate limit id to map
  • Refer additional collateral to be mapped

Reject

The transaction due to non-availability of limits capturing reject reason.

Limit/Credit Check

This section will display the amount block exception details.

Summary

Tiles Displayed in Summary:
  • Main Details - User can view and modify details about application details and LC details, if required.
  • Party Details - User can view and modify party details like beneficiary, advising bank etc., if required
  • Availability and Shipment - User can view and modify availability and shipment details, if required.
  • Payments - User can view and modify all details related to payments, if required.
  • Documents & Condition - User can view and modify the documents required grid and the additional conditions grid, if required.
  • Limits and Collaterals - User can view and modify limits and collateral details, if required.
  • Charges - User can view and modify charge details, if required.
  • Revolving Details - User can view and modify revolving details on revolving LC, if applicable.
  • Preview Messages - User can view and modify preview details, if required.
  • Compliance - User can view compliance details. The status must be verified for KYC and to be initiated for AML and Sanction Checks.
For more information on action butons, refer to the field description table below.

Table 3-36 Exception - Limit Check/Credit - Action Buttons – Field Description

Field Description
Reject On click of Reject, user must select a Reject Reason from a list displayed by the system.

Reject Codes are:

  • R1- Documents missing
  • R2- Signature Missing
  • R3- Input Error
  • R4- Insufficient Balance/Limits
  • R5 - Others

Select a Reject code and give a Reject Description.
This reject reason will be available in the remarks window throughout the process.
Refer Select a Refer Reason from the values displayed by the system.

Refer Codes are:

  • R1- Documents missing
  • R2- Signature Missing
  • R3- Input Error
  • R4- Insufficient Balance/Limits
  • R5 - Others
Hold The details provided will be saved and status will be on hold.

This option is used, if there are any pending information yet to be received from applicant.
Cancel On approve, application must validate for all mandatory field values, and task must move to the next logical stage.
Approve On approve, application must validate for all mandatory field values, and task must move to the next logical stage. If there are more approvers, task will move to the next approver for approval. If there are no more approvers, the transaction is handed off to the back end system for posting.
Back Task moves to previous logical step.

Parent topic: Export Documentary Collection Booking Update