Cash Management & eBanking January 2014

SEPA Country-Specific Information Slovakia

Contents

INTRODUCTION 3 END-DATE INFORMATION 3 IBAN CONVERSION SERVICE 4 SEPA PRODUCTS 4 SEPA CREDITOR IDENTIFIER (CI) 5 MANDATE INFORMATION 5 COUNTRY-SPECIFIC FORMATS 6 VALUE-ADDED SERVICES 7

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INTRODUCTION

This document provides an overview of all country-specific information you need in order to successfully overcome the challenges of SEPA and achieve a seamless migration. Being properly informed and equipped with the necessary tools, you will be able to fully realise all the potential the new SEPA instruments will bring.

END-DATE INFORMATION

SEPA has become a regulatory project. The mandatory end-date was agreed upon for 1 February 2014. Regulation (EU) no. 260/2012 set the end-dates for national payment schemes and SEPA migration schemes, as follows:

END-DATE INFORMATION

The end date was set for 31 January 2014 based on the EU regulation 260/2012. The amendment for an additional transition period until 31 July 2014 was approved by the EU authorities. The related impact on national products is linked to the end-date information. For more information please refer to the link below.* Communication between banks and the Slovak Interbank Payment System (SIPS):

In local formats via a SEPA convertor until 31 January 2014

Only in ISO 20022 XML format from 1 February 2014 onwards

Communication between customers and banks:

In ISO 20022 XML format with exceptions**: 1 February 2014 – 31 January 2016

In ISO 20022 XML format without exceptions**: from 1 February 2016 onwards

BIC as optional data for customers:

For domestic transactions 1 February 2014

For cross-border transactions 1 February 2016

Niche products: There are no niche products in Slovakia Conversion services for consumers: 31 January 2016

** Exceptions: a) Use of the IBAN: Corporates can continue to use the account number as BBAN and banks will convert it to the respective IBAN b) Use of XML messaging formats: Corporates are allowed to use the existing formats; during the transition period banks will support the existing formats extended by the mandatory fields of the SEPA standard.

* http://www.ecb.europa.eu/paym/sepa/pdf/countries/sk_sepa_migration_fact_sheet.pdf?1d4db0750398b35d54bd7623607e9446

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IBAN CONVERSION SERVICE

Conversion tools offered by UniCredit Bank Slovakia a.s. UniCredit Bank Slovakia a.s. has developed a proprietary conversion service – an IBAN to-and-from method – able to determine and update IBAN and BIC for the accounts held with us.

IBAN structure In Slovakia, the IBAN is composed of 24 characters, structured as follows: Positions 1 – 2: ISO country code (SK for Slovakia) Positions 3 – 4: Check digits Positions 5 – 8: Bank identifier/bank code (e.g. “1111” as in the case of UniCredit Bank Slovakia a.s.) Characters 9 – 24: Account number* maximum 6 digits for the prefix maximum 10 digits for the main account number

* Please note that some Slovak account numbers may have fewer digits than the maximum; in this case “0s” should be added at the beginning until the characters total 16 (e.g. the account number with the prefix 0000190000123123; the account number without prefix 0000001234567890).

SEPA PRODUCTS

Domestic products Domestic EUR credit transfers will have to be migrated to SEPA Credit Transfers (SCT) Domestic direct debits will have to be migrated to SEPA Direct Debits – SDD Core or SDD B2B

COMPARISON – CREDIT TRANSFER IN LOCAL FORMAT VS. SEPA CREDIT TRANSFER

Criteria Credit transfer in local format SEPA Credit Transfer Coverage area Only for domestic payments For domestic and cross-border payments

within the SEPA area

IBAN/BIC BBAN and National Bank Code of the beneficiary required

IBAN/BIC* of the beneficiary required

Transactions Interbank transactions in EUR currency Creditor’s account held with Slovak banks

SHA fees, EUR currency, creditor’s account held with SEPA area banks

Execution date Debit: At execution date Credit: UniCredit Bank SK D+0** Other banks D+1**

Debit: At execution date Credit: UniCredit Bank SK: D+0** Other banks: D+1** Paper-based payment orders can be effected D+1 and credited to the payee’s account D+2

Payment identification Variable/specific/constant symbol End-to-end reference

* BIC mandatory for domestic payments till 1 February 2014 and for cross-border payments untill 1 February 2016; **Working days

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While designing your migration approach, make sure you understand the related impact, as also summarised below:

COMPARISON – DOMESTIC DIRECT DEBITS IN LOCAL FORMAT VS. SEPA DIRECT DEBITS

Criteria Direct Debit in local format SDD Core SDD B2B Allowance of SDD collection Local format does not contain all

necessary data to allow SDD Yes

Region Only domestic (SK) Domestic and cross-border Domestic and cross-border Format Local “KV” format ISO 20022 XML ISO 20022 XML Sequence type N/A First/Recurrent/One-off First/Recurrent/One-off Eligible debtor Consumer and non-consumer Consumer and non-consumer Non-consumer only * Submission** and due date Paid after the acceptance of

collection request by the debtor bank

D-5 (First/One-off) D-2 (Recurrent)

D-1 (all)

Mandate management Debit mandate flow mandate kept by the debtor

Mandate kept by the creditor Mandate kept by the creditor and by the debtor bank

Refunds No refund is possible for an authorised DD – it is irrevocable 13 months for an unauthorised transaction

Unconditional refund right within 8 weeks, following the date of debit. 13 months for an unauthorised transaction

No refund for an authorised transaction 13 months for an unauthorised transaction

Mandate checking Mandate checking is mandatory for the debtor bank. Mandate contains a maximum collection limit.

Mandate will be stored and has to be checked by debtor’s bank in case of “conditionally protected” client account

Mandate must be stored at debtor’s bank before the first collection and checked by the debtor bank with every debit entry

Pre-notification N/A 14 days before due date 14 days before due date

SEPA CREDITOR IDENTIFIER (CI)

CI for Slovakia CI for Slovakia is structured as follows: Positions 1 – 2: ISO country code (SK for Slovakia) Positions 3 – 4: Check digits Positions 5 – 7: Creditor Business Code (to be assigned by the creditor, by default “ZZZ”) Characters 8 – 18: Creditor National Identifier for the creditor, numbered in consecutive ascending order, beginning from

the left side with digit “7” (e.g. 70000000025)

How to obtain a Creditor Identifier The payee shall ask his bank for the CI (only one CI can be used, regardless of the bank and the account from which the direct debit is affected. The list of CIs is managed by the National Bank of Slovakia.

MANDATE INFORMATION

Mandate migration Based on the Regulation (EU) no. 260/2012 a continuity clause for existing mandates has been enabled: The existent mandates, given by debtors to their banks until 1 February 2014, remain valid for SDD Core For SDD B2B it is required to sign a new mandate

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Migration rules Since 1 February 2014 banks will implement the protection of the payer accounts in accordance with the SEPA standards as follows: Accounts fully opened to any direct debits Conditionally protected accounts, i.e. the accounts opened for direct debits, for which the payer agreed with in advance Accounts closed to any direct debits.

Banks in Slovakia have to migrate all payer accounts as conditionally protected accounts as of 1 February 2014.

COUNTRY-SPECIFIC FORMATS

Country-specific formats are based on ISO20022 local “KV” format which is used by all domestic banks.

Overview of products related to domestic formats Direct debits in Slovakia are largely used as payment collection instruments and are generally processed in local “KV” format. The same file format is used for domestic credit transfers.

OVERVIEW – PRODUCTS RELATED TO DOMESTIC FORMATS

Type Description End date Target product and specifics/formats

HD:32 and HD:12/local “KV” format via SIPS

Request for collection and direct debit

31 January 2014 SDD CORE and SDD B2B / XML

HD:11/local “KV” format via SIPS

Domestic credit transfers 31 January 2014 SCT/XML

SWIFT MT103 via TARGET2 Urgent payments No end date has been defined so far

MT103 – TARGET2

XML RELATED PAYMENT INITIATION, BOOKING INFORMATION AND ACCOUNT STATEMENTS

XML urgent pain.001

pain.001 pain.002 pain.008 camt.052 camt.053 camt.054 camt.086

Availability at UniCredit Bank Slovakia Yes Yes No Yes Yes Yes No No

Remittance information Unstructured remittance information (140 characters) is recommended. The end-to-end reference is conventionally used for reconciliation purposes.

CHANNELS FOR SEPA PAYMENT INITIATION

SEPA Credit Transfer SEPA Direct Debit CORE/B2B Other transfers MultiCash Yes Yes Under development Business Net Professional Yes Yes Under development EuropeanGate Yes Under development Yes Paper-based Yes No Yes

CUT-OFF TIMES

SEPA Credit Transfer SDD Core SDD B2B COT 9.30 p.m. CET 8 a.m. CET 8 a.m. CET Presentation day Same day D-6 / D-3 / D-2 / Recurrent D-2

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Additional optional services Migration of symbols to the E2E reference

If customers want to use symbols for payment identification – variable, specific and constant, also in the new XML formats – they have to use the Slovak convention “/VS[N10]/SS[N10]/KS[N4]” and enter data into the end-to-end reference, as follows: /VS[N10] – Variable symbol consisting of ten digits /SS[N10] – Specific symbol consisting of ten digits /KS[N4] – Constant symbol consisting of four digits.

In this way also the customers who will not convert to the XML standards as of 1 February 2014 can reconcile their payments according to the currently used symbols.

VALUE-ADDED SERVICES

UniCredit Bank Slovakia a.s. is also able to provide you with additional value-added services, such as: Conversion of BBAN to IBAN – based on the request received from our customers (BBANs are provided in an excel file) SEPA Messages – We are already able to support pain.001 and pain.008, as well as camt.052 and camt.053 (as per the

Slovak national standards). For more details please refer to the following websites: http://www.iso20022.org/payments_messages.page and www.europeanpaymentscouncil.eu/

More information on different SEPA topics, including the “Country-Specific Information” Guides, can be found on our website: www.gtb.unicredit.eu.

Information about SEPA in Slovakia can be found as well on the website of the National Bank of Slovakia: www.nbs.sk/sk/platobne-systemy/sepa

Disclaimer The products and services featured above are offered by a network of banks and representative offices of UniCredit S.p.A. or its affiliates (the “UniCredit Group”) in accordance with appropriate local legislation and regulation. UniCredit Corporate & Investment Banking is a trademark of UniCredit S.p.A. Nothing in this publication is intended to create contractual obligations on any of the entities composing Corporate & Investment Banking Area of UniCredit Group which is composed of (the respective Units of) UniCredit Bank AG, Munich, UniCredit Bank Austria AG, Vienna, and UniCredit S.p.A., Rome. UniCredit Bank AG is regulated by the German Financial Supervisory Authority (BaFin), UniCredit Bank Austria AG is regulated by the Austrian Financial Market Authority (FMA) and UniCredit S.p.A. is regulated by both the Banca d’Italia and the Commissione Nazionale per le Societa e la Borsa (Consob).

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