4.2.3.2 Process Sanction Check during Save of a Transaction
When a contract is saved, the system processes the sanction check as follows:
- Checks if sanction check is required for transaction branch
- If sanction check is required for transaction branch, then checks if sanction check is required for the product used to book the contract
- If sanction check is required for the product used to book the contract, then check if sanction check is required for the counterparty of the contract.
- If sanction check is required for the counterparty of the contract, then
- From the sanction check preference maintenance, picks the sanction check re-check days for the branch. If there are no maintenance then re-check days will be treated as zero (0).
- If the last sanction check date for the contract is null or if the last sanction check date plus re-check days is less than the current date then the validity of last sanction check will be expired and it has to be performed again.
- From the parties tab of contract picks the information for the parties for set of events maintained in the respective product.
- The following events performs sanction check validations:
Table 4-36 Sanction Check Validations
| Event Code | Event Description |
|---|---|
| AATC | Amendment from Advice to Confirm |
| AMND | Amendment |
| AMNV | Initiation Of Amendment Confirmation |
| AOCF | Amend from open to Open & Confirm |
| APAC | Amend - Pre-advice to Adv & confirm |
| APAD | Amendment from Pre-advice to advice |
| BADV | Booking Export LC-operation Advice |
| BANC | Booking of LC with Advice & Confirm |
| BCFM | Booking export LC with Confirm |
| BISS | Booking LC or Guarantee Issue |
| BPRE | Booking of LC with Pre-Advice |
| REIS | Reissue of Guarantee |
| ROPN | Reopening of an LC |
| TRNF | Transfer of LC |
- Details of each party will be sent for sanction check as a single request. Response from external system will be updated in sanction check queue for the request.
- Sanction check status at the contract level will be updated to ‘P’ if the contract is saved in an unauthorized mode and updated as ‘X’ if the contract is saved in an auto authorized mode. The contract's authorization status in both the cases will be U or unauthorized. The system will then trigger the event SNCK for the contract.
- If last sanction check date plus re-check days is greater than or equal to the current date, it means that the last sanction check performed is still valid. If it is valid, then
- the system checks if the parties information maintained in the contract's settlement instructions has changed since the last sanction check. If it is changed, a sanction check request is generated and placed in sanction check queue even though last sanction check is still valid.
- If there are no changes in parties information, it means that sanction check is not required and sanction check request will not be made.
- Information will be placed in sanction check queue only if data is available in Parties tab for the party type.
- Any contract that is in ‘X’ or ‘P’ status cannot be authorized or modified. It can only be deleted. If a contract or event in ‘X’ or ‘P’ status is deleted, then the associated sanction check request should also be deleted.
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