Exceptions

2.5 Exceptions

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

As per regulatory requirement, all tasks are scrutinized for KYC, Compliance and Sanctions. The checks to external system/internal system is initiated after the Data Enrichment stage.

The amount Block Earmark and Limit Earmarks, if applicable are also initiated after the Data Enrichment stage.

If a negative response is received for any of the checks, the task lands in respective exceptional queue which require further manual handling/approval.

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. If multiple accounts are applicable, Amount Block Reference for all accounts to be passed to 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

Tiles Displayed in Summary:

Main Details - User can view details about application details and LC details.
Document Details - User can view the document details.
Shipment Details - User can view the shipment details.
Additional Conditions - User can view additional conditions of the drawing.
Discrepancy Details - User can view the discrepancy noted for the current LC drawing.
Maturity Details - User can view the maturity details.
Advices - User can view the advices details.
Revolving Details - User can view revolving details on revolving LC, if applicable.
Limits and Collaterals - User can view and modify limits and collateral details, if required.
Commission, Charges & Taxes - User can view the charge details.
Payment Details - User can view the payment details.
FX Linkage - User can view the FX linkage details.
Finance Preferences - User can view the finance preferences details.
Preview Message - User can view and modify preview details, if required.
Settlement Details - User can view the settlement details.
Parties Details - User can view and modify party details like beneficiary, advising bank etc., if required.
Compliance Details - User can view compliance validation response. The status must be verified for KYC and to be initiated for AML and Sanction Checks.
Profit Details - User can view the linked profit details.
Assignment of Proceeds - User can view the assignment of proceeds details.

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 2-39 Amount Bock Exception - Action Buttons - Field Description

Field	Description
Documents	View/Upload the required document.
Remarks	Specify any additional information regarding the lc drawing. 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 Instruction	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.
Incoming Message	Displays the incoming message, if any.
View LC	Click this button to view the latest LC values displayed in the respective fields.
View Events	Click this button to view all the events under the Drawing LC Issued till date.
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.
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 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.

Log in into OBTFPMCS application, KYC exception queue. KYC exception failed tasks for Trade Finance transactions will be listed in your queue.
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 2-39 Exception - Know Your Customer (KYC) Summary

Tiles Displayed in Summary:

Main Details - User can view details about application details and LC details.
Document Details - User can view the document details.
Shipment Details - User can view the shipment details.
Additional Conditions - User can view additional conditions of the drawing.
Discrepancy Details - User can view the discrepancy noted for the current LC drawing.
Maturity Details - User can view the maturity details.
Advices - User can view the advices details.
Revolving Details - User can view revolving details on revolving LC, if applicable.
Limits and Collaterals - User can view and modify limits and collateral details, if required.
Commission, Charges & Taxes - User can view the charge details.
Payment Details - User can view the payment details.
FX Linkage - User can view the FX linkage details.
Finance Preferences - User can view the finance preferences details.
Preview Message - User can view and modify preview details, if required.
Settlement Details - User can view the settlement details.
Parties Details - User can view and modify party details like beneficiary, advising bank etc., if required.
Compliance Details - User can view compliance validation response. The status must be verified for KYC and to be initiated for AML and Sanction Checks.
Profit Details - User can view the linked profit details.
Assignment of Proceeds - User can view the assignment of proceeds details.

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

Table 2-40 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 lc drawing. 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 Instruction	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.
Incoming Message	Displays the incoming message, if any.
View LC	Click this button to view the latest LC values displayed in the respective fields.
View Events	Click this button to view all the events under the Drawing LC Issued till date.
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.

Log in into OBTFPMCS application, limit check exception queue. Limit check exception failed tasks for Trade Finance transactions must be listed in your queue.
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 details about application details and LC details.
Document Details - User can view the document details.
Shipment Details - User can view the shipment details.
Additional Conditions - User can view additional conditions of the drawing.
Discrepancy Details - User can view the discrepancy noted for the current LC drawing.
Maturity Details - User can view the maturity details.
Advices - User can view the advices details.
Revolving Details - User can view revolving details on revolving LC, if applicable.
Limits and Collaterals - User can view and modify limits and collateral details, if required.
Commission, Charges & Taxes - User can view the charge details.
Payment Details - User can view the payment details.
FX Linkage - User can view the FX linkage details.
Finance Preferences - User can view the finance preferences details.
Preview Message - User can view and modify preview details, if required.
Settlement Details - User can view the settlement details.
Parties Details - User can view and modify party details like beneficiary, advising bank etc., if required.
Compliance Details - User can view compliance validation response. The status must be verified for KYC and to be initiated for AML and Sanction Checks.
Profit Details - User can view the linked profit details.
Assignment of Proceeds - User can view the assignment of proceeds details.

For more information on action butons, refer to the field description table below.

Table 2-41 Exception - Limit Check/Credit - Action Buttons – Field Description

Field	Description
Documents	View/Upload the required document.
Remarks	Specify any additional information regarding the lc drawing. 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 Instruction	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.
Incoming Message	Displays the incoming message, if any.
View LC	Click this button to view the latest LC values displayed in the respective fields.
View Events	Click this button to view all the events under the Drawing LC Issued till date.
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.
Cancel	Cancel the Import LC Amendment KYC exception check.
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.

Parent topic: Import LC Drawings - Islamic