WorldLink Management Guide Janaury 2007 · PDF fileBy this Management Guide, neither Citibank Europe ... operational, credit, marketing and general business practices, as well as information

WorldLink® Payment ServicesManagement Guide

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WorldLink Payment Services Management Guide – January 2007

Preface WorldLink Payment Services (“WorldLink”) is a multi-currency cross-border payment service offered through Citibank Europe plc, an Ireland-based financial services company with its principal office located in Dublin, Ireland (“Citibank Europe”). Payments through WorldLink are made through Citibank Europe and various of its affiliates (“Affiliates” and, together with Citibank Europe as the case may be, “Citibank”).

This WorldLink Payment Services Management Guide (this “Management Guide”) forms a part of, and is incorporated by reference in, your organization’s WorldLink services contract except as may be expressly otherwise agreed. Citibank Europe may, at its discretion, reasonably modify or amend this Management Guide from time to time, which modification or amendment will become binding when your organization receives access to a copy of it.

If Citibank Europe or any Affiliate provides software to you, your rights and responsibilities, and those of Citibank Europe, regarding the performance of the software and the proprietary communications network utilized by the software, or any problems with such performance, shall be governed exclusively by a software license agreement or other agreement containing such software license that your organization has entered into with Citibank. By this Management Guide, neither Citibank Europe nor any of it’s Affiliates takes on any responsibility with respect to such performance or problems except as otherwise provided in such software license agreement.

Your organization must hold strictly confidential all non-public information, whether oral or written, obtained now or later by your organization from Citibank Europe or its Affiliates. This information includes, without limitation, information regarding pricing, operational, credit, marketing and general business practices, as well as information contained in this Management Guide or in any agreements relating to this Management Guide. Your organization shall not disclose such information to any third party without Citibank Europe’s prior written consent, unless specifically required by court order, court procedure, law or regulation.

Unless otherwise expressly agreed, Citibank Europe shall hold strictly confidential all non-public information regarding your organization, whether oral or written, obtained now or later by it from your organization in the course of performing its obligations under this Management Guide and under any related agreements or arrangements and shall not disclose such information to any third party without your organization’s written consent, except as follows:

(i) Disclosures required by court order, court procedure, law, regulation, or any governmental department or agency without regard to its authority.

(ii) Disclosures to Citibank Europe or any of its Affiliates, subsidiaries, branches, correspondents, auditors, consultants, accountants or attorneys; provided, such parties agree to hold such disclosed information on a strictly confidential basis.

(iii) Disclosures to a third party respecting an individual check (e.g., On-Site or Remote) or other transfer (e.g., Funds Transfer, or Cross Border ACH payment or other method), when that third party already knows the serial number or other identifying number of such check or transfer.

The authoritative and official text of this Management Guide shall be in the English language as used in the United States of America. Any translation from the English text of this Management Guide is for the convenience of the parties and any inconsistencies or inaccuracies between the English text and any translation shall be resolved in favor of the English text.

The rights and obligations of your organization and Citibank Europe or any of its Affiliates, subsidiaries or correspondents, including their respective successors and assigns, are subject to and limited by all applicable local laws and regulations, including, without limitation, any foreign currency exchange control laws and regulations. Because such laws and regulations are subject to change without notice, Citibank Europe or any of its Affiliates, subsidiaries, branches or correspondents do not make any representations with respect to such laws and regulations. It is your organization’s responsibility to ascertain and comply with such laws and regulations.

You may not use WorldLink for any illegal activities, including, but not limited to, the payment of any gambling debt or proceeds.


Contents Contents .............................................................. 1

Purpose .................................................... 1 Contents ................................................... 1 Terminology .............................................. 1 Using This Guide ....................................... 1 Audience. .................................................. 2 Additional Documentation........................... 2

1 – Overview ........................................................ 3 Governing Law .......................................... 3 Local Taxes on Funds Transfers ................. 3 Payment Types ......................................... 4

Communication Methods .................................. 4 CitiDirect® Online Banking ......................... 4 File Transmission ...................................... 4 SWIFT™ ................................................... 4

Processing Summary ....................................... 5 Payment Initiation ...................................... 5 Transaction Funding .................................. 6 Reconcilement........................................... 6 Customer Assistance................................. 6

United States Regulations Related to WorldLink Payment Services ............................ 7

U.S. Trade Sanctions and Embargoes ........ 7 U.S. Travel Rule ........................................ 7 Scope of the Travel Rule ............................ 7 Travel Rule Exceptions/Exemptions ............ 8

2 – Security .......................................................... 9 Preview ..................................................... 9 Citibank Europe Security Procedures .......... 9 Client Number ........................................... 9 Transaction Reference Number .................. 9 WorldLink Check Security .......................... 9 WorldLink Cash Security ...........................10 Currency Purchase Contract Rate Confirmation.............................................10 Message Transmission Security ................10 File Transmission .....................................10 WorldLink via CitiDirect Online Banking ......11 SWIFT .....................................................11

Additional CitiDirect Online Banking Security Features ........................................................11

Access Controls........................................11 User Profiles and Entitlements ...................11 IDs and Passwords ...................................12 Software Time Outs ..................................12 Audit Trails ...............................................12 Payment Security .....................................12

Your Security Provisions .................................12 3 – Payment Types..............................................13

Preview ..........................................................13 WorldLink Funds Transfers ..............................13

Sending Funds Transfers “Charges” .......... 14 Prompt Reporting of Fraudulently Requested Transfers ................................................. 14

WorldLink Remote Checks ............................. 15 Remote Check Crossing........................... 15 Effect of Check Crossing on Your Remote Check Issuance ....................................... 15 Remote Check Personalization ................. 16 Check Printing and Delivery ...................... 16 Prompt Reporting of Fraudulently Requested Remote Checks ....................................... 16

WorldLink On-Site Checks .............................. 16 Check Stock ............................................ 16 Receiving Check Stock............................. 17 Guidelines for Administering Check Stock.. 17 Checks Made Out to Bearer ...................... 18 Mailing an On -Site Check ......................... 18 On-Site Check Crossing ........................... 19 Effect of Check Crossing Your On -Site Check ..................................................... 19 Voiding On-Site Checks ........................... 19 Resolving Paid Unadvised (PUA) Items ..... 20 Prompt Reporting of Lost, Stolen, or Fraudulently Issued Checks ...................... 20 Check Fraud Responsibility ...................... 20

Cross Border ACH Payments.......................... 21 WorldLink Cash ............................................. 21

Cash Charges.......................................... 22 Prompt Reporting of Fraudulently Requested Transfers ................................................. 22 Manually Initiated Funds Transfer ............. 22 WorldLink Payment Services Options ........ 23

4 – Transaction Funding .................................... 24 Previ ew ................................................... 24 Funding Currencies .................................. 24 Foreign Currency Exchange ..................... 24 Rate Quotation Formats ........................... 25 All Divide................................................. 25 All Multiply ............................................... 25 Interbank ................................................. 25 Rate Quotation Types .............................. 26 Spot Rates .............................................. 26 Calling a WorldLink Foreign Currency Representative ........................................ 26 Using the Online Rates Facility ................. 26 WorldLink Payment Services Automatically Apply Rates ............................................. 26 Daily Rates .............................................. 26 Forward Rates ......................................... 26 Available Currencies ................................ 27 Figure One: Currencies Commonly Traded in the Forwards Market ................................ 27 Forwards Process .................................... 27


Foreign Currency Exchange Confirmation Letter .......................................................27 Funding Amount .......................................28 Funding Methods ......................................28 Automatic Debit (Autofunding) ...................28 Funding Accounts for Automatic Debit ........28 Manual Remittance...................................28 Remit Due Date ........................................29

5 – Reconcilement ..............................................30 Preview ....................................................30 Information for Reconcilement ...................30 Types of Reconcilement ............................30 Reconcilement Information........................30 File Transmission—Additional Information ..31 WorldLink Payment Services via SWIFT—Additional Information ...............................31

Financial Difference Statement ........................31 Summary of Outstanding Financial Differences ...............................................31 Detailed Explanation and Suggested Corrective Action ......................................31 Name and Telephone Number for Assistance 31

6 – Service Requests ..........................................33 Preview ..........................................................33 Customer Service Notes .................................33

Call Back Procedures ................................33 Have Reference Numbers Available ...........33 Contingency Means of Communication Card and Standing Order for Refunds ................33 Refunds ...................................................34 Status Requests .......................................34

Requesting the Status of On-Site Checks.........35 Using the Citibank Voice Response Status System.....................................................35 Requesting Status from a Citibank Representative .........................................35 Status Information Provided for Checks......35

Requesting the Status of Remote Checks ........36 Using the Citibank Voic e Response Status System.....................................................36 Requesting Status from a Citibank Representative .........................................36 Status Information Provided for Remote Checks.....................................................36

Requesting the Status of Funds Transfer Cross Border ACH and Cash ...........................37

Requesting Status from a Citibank Representative .........................................37

Check Stop Payment Requests .......................37 Requesting a Stop Payment ......................38 Requesting a Stop Payment ......................38 Providing Information to WorldLink Payment Services ...................................................38 Stop Payment Reference Number ..............38 Canceling a Stop Payment ........................38

Check Photocopy Requests............................ 39 Requesting a Photocopy from a Citibank Representative ........................................ 39

WorldLink Check Fraud Procedures ................ 39 Overview—Forgeries................................ 39 Forgery Types: ........................................ 39 Counterfeit Checks................................... 40 Alteration ................................................. 40 Forged/Unauthorized Endorsement ........... 40 Paid After Death ...................................... 40 Fraud Detection and Return Process ......... 41

Check Recovery Process ............................... 41 WorldLink Cash Fraud Procedures .................. 42

Returned Funds Transfer Payments.......... 42 Returned Cash Payments ......................... 42 Funds Transfer and Cross Border ACH Recall Requests....................................... 42 Cash Recalls ........................................... 42 Requesting a Recall ................................. 43 Providing Information to WorldLink Payment Services .................................................. 43

Response to Your Recall Request................... 44 Successful Recall Process........................ 44 Unsuccessful Recall Process .................... 44

Glossary............................................................. 45 Abbreviations and Acronyms .................... 45 Terms ..................................................... 46 Same Day/Next Day Currencies ................ 53

1WorldLink Payment Services Management Guide – January 2007

Contents

Purpose

This Management Guide provides important operational and administrative information for users of WorldLink® Payment Services—On-Site Checks, Remote Checks, Funds Transfers, Cross Border ACH, Cash and other types of payments that are made available to your organization through WorldLink. You are expected to familiarize yourself thoroughly with the contents of this Management Guide.

Contents

This Management Guide contains the following chapters:

Chapter 1—Overview introduces WorldLink, summarizes the communication methods that can be used to send payment instructions and information to WorldLink, and describes payment processing.

Chapter 2—Security discusses security aspects of issuing payment instructions via WorldLink Payment Services.

Chapter 3—Payment Types explains the types of disbursements available with WorldLink Payment Services and describes the features and use.

Chapter 4—Transaction Funding provides the information needed to assure a prompt, accurate remittance to Citibank Europe to fund your WorldLink Payment Services transactions.

Chapter 5—Reconcilement identifies information provided to your organization for reconcilement and indicates the types of reconcilement that WorldLink Payment Services performs.

Chapter 6—Service Requests provides information for making customer service requests––stop payments, photocopies, transfers and ACH recalls, as well as information on how to determine payment status and obtain refunds.

Terminology

The Glossary, which is found at the end of this Management Guide, provides definitions of abbreviations and terms used in this Management Guide and in your use of WorldLink. Definitions of the following terms, which are used throughout this Management Guide, are also included here near the front in order to add clarity to your reading.

Payment. A disbursement to a client’s beneficiary.

Payment Instruction or Payment Order. Electronic information instructing Citibank Europe to effect a payment on the client’s behalf.

Funding. The act of paying Citibank Europe for WorldLink Payment Services transactions.

Remittance. The total daily funding amount due to Citibank Europe for a client’s WorldLink Payment Services transactions.

Remit Option. The date when available funds for your WorldLink transactions are due.

Using This Guide

This Management Guide provides information for the following WorldLink payment types:—On-Site Check, Remote Check, Funds Transfer, Cross Border ACH payments, and Cash. It also describes the various communication methods for providing your organization’s payment instructions and information to WorldLink, whether via CitiDirect® Online Banking, file transmission, or SWIFT™. You need only refer to those sections that address the WorldLink payment products and services used by your organization for effecting payments.

It is a good idea to review this Management Guide to familiarize yourself with its contents and organization. Thereafter, you will want to use this Management Guide as a reference for the particular WorldLink products and services you use.


Audience.

The guide is directed to all individuals who want an overview of WorldLink Payment Services and to those who have overall responsibility for managing and administering WorldLink payments in your organization.

Additional Documentation

In addition to this Management Guide, Citibank Europe also provides the following documentation for your reference:

WorldLink Payment Services Reference Booklet. The WorldLink Payment Services Reference Booklet (the “Reference Booklet”) contains detailed currency and bank information, a customer support directory, and other important reference information.

The latest version of this Management Guide, the Reference Booklet and other informational documents regarding WorldLink are maintained on the WorldLink Online Reporting system. The WorldLink Online Reporting system can be accessed through www.worldlink.com . Alternatively, the site can be directly accessed via: https://clientreporting.worldlink.com


1 – Overview

WorldLink Payment Services offers a complete cross-border payments system serving clients worldwide. With WorldLink Payment Services, your organization can issue payments in over 130 currencies and make remittances for those payments in one or more currencies designated by you. Thus, you can participate fully in the global marketplace without having to maintain an account in every currency you issue.

When you sign up for WorldLink Payment Services, you select the payment types your organization will issue, the communication method or methods you will use to deliver payment instructions and information to WorldLink, your funding method and funding currencies, and remit option. A recap of this information is provided to you prior to start-up.

This chapter identifies the payment types that can be issued via WorldLink Payment Services, summarizes the communication methods WorldLink supports, and describes the phases of payment processing. Subsequent chapters provide more detailed information.

Governing Law

Unless otherwise agreed, any action or dispute regarding payments initiated through WorldLink Payment Services are governed and interpreted by the laws of England. In addition:

¡ Each Cross Border ACH payment is also subject to any applicable local clearinghouse rules. The Operating Rules and Guidelines of the (U.S.) National Automated Clearing House Association (“NACHA”) require originators of transactions to agree to such rules and guidelines. Therefore if you request a U.S. ACH payment, you expressly agree to the rules of NACHA.

¡ With respect to any check issued, the laws of the country in which the check is presented for payment, as indicated by the “payable at” location on the face of the check, will govern the handling of the check for all purposes, including presentment, payment, collection, stopping or return.

To the extent your organization may be able to claim sovereign immunity from the jurisdiction of any court or legal process (including relief by way of injunction or specific performance), you agree to irrevocably waive such immunity with respect to your WorldLink obligations and further waive any defense in connection with immunity your organization may have against the enforcement of any judgment rendered by any court in respect of WorldLink Payment Services.

You cannot assert any claim against Citibank Europe relating to WorldLink Payment Services or any WorldLink payment more than one year after such claim shall have accrued.

The terms and information provided in this Management Guide are for the benefit of you and Citibank Europe (including any of its Affiliates perform ing the WorldLink services), and no other person shall have any right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.

Local Taxes on Funds Transfers

A payment to offshore beneficiary based on your instructions may necessitate the payment of withholding taxes, VAT and other taxes or governmental charges and/or other legal or regulatory reporting, all of which remain your responsibility. The tax or any governmental charge will be paid by you, and in addition you should forward to “Citibank Europe plc, 1 North Wall Quay, Dublin, Ireland, Attention: Chief Financial Officer” the original receipt acknowledging payment of such tax or charge. Any payment to Citibank Europe should be increased so that the net amount received is equal to the amount it would have received had no such tax or charge been due.

If Citibank Europe is required to make any payment on account of a tax (excluding taxes imposed on and calculated by reference to our net income) or otherwise on or in relation to any sum received or receivable from or on behalf of you or any liability in respect of any such payment is asserted, imposed, levied or assessed against Citibank Europe, you will indemnify Citibank Europe, when requested, against such payment or liability, together with any interest, penalties, costs and expenses payable or incurred in connection with the payment.


Payment Types

According to your organization’s agreement with Citibank Europe, you have been authorized to issue one or more of the following payment types:

¡ WorldLink Funds Transfers. These are electronic payments that you request WorldLink to effect on your behalf. WorldLink Funds Transfers can be issued in over 130 currencies.

¡ WorldLink Remote Checks. These are checks that you request WorldLink to issue on your behalf. Citibank Europe is the drawer. WorldLink Remote Checks can be issued in over 30 currencies.

¡ WorldLink On-Site Checks. These are checks that you issue from your own offices on WorldLink Payment Services check stock. They are drawn on a Citibank-designated payable-at bank. Your organization is the drawer. WorldLink On-Site Checks can be issued in 16 currencies. Restrictions may apply on the usage of On-Site Checks depending on local country regulations.

¡ Cross Border ACH Payments. These are electronic payments that you request WorldLink to effect on your behalf. They are used primarily for non-urgent (minimum two-day value), predicable payments. Cross Border ACH payments can be issued in eight currencies covering 18 countries.

¡ WorldLink Cash*. These are cash payments that you request WorldLink to effect on your behalf. They are used primarily for urgent low value same day cash payment needs. A beneficiary can collect funds in 190 countries and territories and over 220,000 locations worldwide.

Chapter 3 describes each payment type in greater detail. For a list of the payment currencies available for each payment type, see the WorldLink Payment Services Reference Booklet.

Communication Methods WorldLink instructions and information can be transmitted for processing via CitiDirect Online Banking, file transmission, or the SWIFT network. Each communication method is described in separate documentation relating to that particular method.

CitiDirect® Online Banking

WorldLink Payment Services CitiDirect® Online Banking is a browser-based application accessed through CitiDirect. Remote Checks, On-Site Checks, Funds Transfers and Cross Border ACH can be initiated through this delivery channel.

File Transmission

File transmission is a batch or bulk payment initiation method. It enables you to build a file of payment instructions from information derived from your accounts payable or other systems and then transmit the file directly to WorldLink for processing. WorldLink returns payment and other information to you via a file transmission or, in some cases, via the Internet. Remote Checks, Funds Transfers, and Cross Border ACH payments can be initiated via file transmission. You can also use a file transmission to notify Citibank Europe of your On-Site Check issuance.

SWIFT™

Available only to financial institutions that are members of SWIFT™ (Society for Worldwide Interbank Financial Telecommunications), WorldLink payments through SWIFT allows these institutions to send payment instructions, reconcilement information, and customer service requests via SWIFT messages. Remote Checks and Funds Transfers can be initiated via SWIFT. You can also use SWIFT to notify Citibank of your On-Site Check issuance.

* WorldLink Cash is offered via Western Union


Processing Summary WorldLink Payment Services provides a simple way for organizations to make foreign currency payments directly from their offices, regardless of the currency. WorldLink Payment Services offers a large number of frequently traded and exotic currencies for your payments. See the Reference Booklet for the currencies available for each payment type.

There are four components to WorldLink processing:

Your Organization Citibank

Payment Initiation

Create and authorize payments, obtain foreign currency exchange contracts, and transmit payment instructions and other information to WorldLink.

Transaction Funding

Remit funds to cover your transactions.

Payment Execution

Effect payments to beneficiaries according to your instructions.

Reconcilement

Reconcile issuances, remittance, and paid item information.

The following sections describe each of these components.

Payment Initiation

Create Payment

Instructions

Authorize Payments

Obtain Foreign

Currency Contracts

Print On-Site Checks

Transmit to WorldLink

Create Payment

Instructions

Authorize Payments

Obtain Foreign

Currency Contracts

Print On-Site Checks

Transmit to WorldLink

Payment initiation can be via CitiDirect Online Banking, batch electronic files created by your organization to Citibank’s specifications, or the SWIFT network. Regardless of the communication method, your in-office payment processing consists of the following activities. The order in which you perform the activities may vary by communication method and your organization’s operating preferences.

¡ Create Payment Instructions. Payment instructions provide information about the payment, including the payment type, beneficiary, payment amount and currency. Also included are the currency being used to fund the transaction, mailing instructions (for a Remote Check) and transfer instructions (for a Funds Transfer Cross Border ACH or Cash* payment).

For CitiDirect Online Banking, your payment instructions can be provided in a variety of ways: free form entry, use of a preformat (a predefined template of payment information), or data imported from another computer system. The entry alternatives can be used interchangeably and are under the control of your organization.

For file transmission , you create data files according to the file specifications you have been provided.

For SWIFT, you create MT 103 messages for Remote Checks and Funds Transfers, and MT 110 messages to advise WorldLink of your On-Site Check issuance. Cross Border ACH payments cannot be issued via SWIFT.

¡ Authorize Payments. WorldLink recommends that a designated person or persons in your organization other than the person who created the payment instruction (or last modified it) authorize the payment for release to be processed.

CitiDirect Online Banking provides functions for authorizing payments and designating which users can act as authorizers.

For file transmission and SWIFT, your organization must ensure that the payments are approved for processing before they are released to WorldLink Payment Services.


¡ Obtain Currency Contracts. Whenever the payment currency and the funding currency are different, a currency purchase is involved. You may obtain currency conversion rates and contracts to cover your funding requirements in one of these ways:

o Automatically via the WorldLink Online Rate (“OLR”) facility o Receiving daily rate quotations from WorldLink Payment Services o Calling a WorldLink currency specialist directly o Automatically as part of the payment processing via WorldLink (for file transmission and SWIFT only)

The method or methods available for your use are determined by the communication method and your arrangement with WorldLink Payment Services. For additional information on purchasing foreign currencies, see Chapter 4—“Transaction Funding.”

¡ Print On-Site Checks. If your agreement includes On-Site Checks as a payment type and you have On-Site Check issuances, print the checks on the WorldLink check stock provided to your organization.

¡ Transmit to Citibank. Your payment instructions and other information must be transmitted to Citibank Europe so that WorldLink Payment Services can act on that information. For payment instructions for Remote Checks, Funds Transfers, Cross Border ACH and Cash payments, WorldLink effects the payments according to your instructions. For On-Site Checks, the information you provide is used to begin the status tracking and reconcilement process. If your organization funds its transactions via an automatic debit, the debit is initiated based on the information transmitted. The timing for each of these activities proceeds according to your payment instructions and remit option.

Transaction Funding

Depending on the communication method you use and your arrangement with Citibank Europe, you may fund your transactions via an automatic debit to one or more of your organization’s bank accounts or via a manual remittance. For the current list of acceptable funding currencies, see the ’WorldLink Funding’ table in the WorldLink Payment Services Reference Booklet.

If you fund via an automatic debit, you designate by payment the specific funding account that should be debited for that payment. Citibank Europe uses this information in creating the automatic debit instruction. A single debit is made to each funding account regardless of the number of transactions against that account. If you fund via a manual remittance, you designate the funding account generically by the funding currency in which you will make your remittance and make a single remittance to WorldLink in that funding currency.

Chapter 4 contains further information on transaction funding.

All amounts remitted to Citibank Europe by the client to cover payments are the property of Citibank Europe and are not deposits of the client. Nothing herein shall constitute Citibank Europe an express or resulting trustee for the client.

Reconcilement

WorldLink reconciles transactions, currency purchases, funding, and clearing. Your organization is also notified of discrepancies. Various reports are available for your own reconcilement activities. If you fund WorldLink via an automatic debit, your account statement for each funding account provides debiting activity against that account.

Customer Assistance

A variety of groups within Citibank provide customer assistance. Collectively, the staff in these groups are called “Citibank Representatives”. The Customer Support Directory in the Reference Booklet provides addresses, telephone numbers, and hours of operation for each group.

In addition to contacting your Citibank Representative, CitiDirect Online Banking provides a service module, which includes a full range of customer assistance. This module can be utilized not only by CitiDirect users, but also if you use file or SWIFT to communicate payment instructions. The module includes the following capabilities:

¡ Initiating a stop payment.

¡ Payment status inquiries.

¡ Photocopy requests .


¡ Processing refunds .

¡ Initiate a transactional query through CitiDirect Online Banking.

United States Regulations Related to WorldLink Payment Services

U.S. Trade Sanctions and Embargoes

If you request a check, electronic payment, or cash payment which would violate U.S. trade sanctions, Citibank Europe is required to withhold the transaction and to impound your remittance. Likewise, if Citibank Europe becomes aware (for example, through clearing) that an On-Site Check you have issued violates U.S. sanctions, Citibank Europe is required to impound the remittance and the check.

As a wholly owned subsidiary of a United States financial institution, Citibank Europe is prohibited from transferring funds, regardless of currency, to any country, organization, or individual who is subject to U.S. economic sanctions (’sanctions target’). This is true regardless of the resident country of the payment originator.

You must refrain from using the services of Citibank Europe to facilitate commercial or financial transactions with, or directly or indirectly for the benefit of any sanctions target. Unless a transaction is authorized by a special or general license from the United States government, any requested Remote Checks or Funds Transfers which are destined for any sanctions target will not be completed and, in most circumstances, Citibank Europe is required to seize the funds and place them in blocked accounts. Citibank Europe is also required to block the funds you have remitted for checks sent to any sanctions target.

Once the funds are blocked, they cannot be released unless your organization applies for and receives a license from the Office of Foreign Asset Control. It is Citibank Europe policy that clients must apply for a license themselves. You may obtain information on economic and trade sanctions and copies of needed forms from the OFAC site at http://www.ustreas.gov/ofac/ on the Internet.

Contact your Citibank Representative if you require any clarification regarding procedures in handling these transactions. If you have any questions concerning U.S. trade embargoes and controls or the procedure for obtaining U.S. Governmental licenses, you should consult your legal counsel.

In addition, Citibank Europe clients are subject to the sanctions imposed by any country where a Citibank branch is located. Should the U.S. sanctions overlap with those of another country, the stricter restrictions of the two countries will be enforced if permitted by U.S. law.

If you are sending a payment to an organization, a country, or a national of a country that you believe may be subject to sanctions, you should consult your legal counsel before sending funds to that country or national of that country.

U.S. Travel Rule

The U.S. Treasury has implemented a regulation called the “Travel Rule” in an attempt to curtail money-laundering transactions in the U.S. The Travel Rule requires that additional information travel with the payment in order to aid law enforcement in tracing such transactions.

If money laundering is suspected, law enforcement will have a single source to locate:

¡ Original ordering client (originator) of the transfer.

¡ Originator’s bank.

¡ Beneficiary.

¡ Beneficiary’s bank.

Scope of the Travel Rule

The Travel Rule applies to all methods used to move funds initiated by the following organizations. For WorldLink, these methods are Remote Checks and Funds Transfers.


¡ Financial institutions and certain non-bank financial institutions (“NBFIs”) involved in money transmittals that are subject to the U.S. Federal Bank Secrecy Act regulations. Examples of NBFIs are securities brokers/dealers, money transmitters and remitters, exchange houses, and all other organizations that transfer funds for clients.

¡ Financial institutions operating on U.S. soil, U.S. territories, or U.S. possessions.

Travel Rule Exceptions/Exemptions

Your organization does not have to provide Travel Rule information if your transaction meets any of the following criteria:

¡ The transfer is less than 3,000.00 USD equivalent.

¡ It is a debit transaction.

¡ It is a transfer where both the Originator and Beneficiary are any of the following:

o A U.S. domestic bank o A wholly owned U.S. domestic subsidiary of a U.S. domestic bank o A U.S. domestic broker or dealer in securities o A wholly owned U.S. domestic subsidiary of a U.S. domestic broker or a dealer in securities o The United States government o A U.S. state or local government o A Federal, state, or local government agent or instrumentality o The same person and their banks are the same domestic bank

Contact your legal counsel for clarification as to whether your organization must comply with the Fed Travel Rule and for advice on whether a particular transaction requires Fed Travel IDs.


2 – Security

Preview

The security of transactions processed via WorldLink Payment Services depends on both Citibank Europe and your organization. Citibank Europe has instituted multiple safeguards to protect the confidentiality and integrity of your processing. You must be equally diligent in maintaining security during your use of WorldLink. This chapter discusses security.

Citibank Europe Security Procedures

Citibank Europe’s security procedures are designed to verify the authenticity of an electronic communication—that is, that the data you sent is the data received—and not to detect errors in transmission or content such as discrepancies between account numbers and names. Citibank Europe uses codes, passwords, and security devices to verify the authenticity of information, instructions, orders and other communications sent by your organization to WorldLink and by WorldLink Payment Services to your organization.

If you request payments by electronic messages (including electronic banking, internet banking or the transmission of electronic files), Citibank Europe will subject each request message to agreed security procedures, but is authorized to process any payments requested in messages, which comply with our security procedures. Citibank Europe cannot check the contents of each message and you are responsible for the contents and the conformity to any required formats.

Many of Citibank Europe’s security provisions are part of its internal operating procedures. The following provisions, however, affect the security and integrity of your payment instructions directly.

Client Number

WorldLink clients receive a unique identification number for use in processing WorldLink payments. This identification number is used to verify that the source of a payment instruction is a valid source and in WorldLink’s payment reconcilement and tracking processes.

Your client number is provided to you prior to start-up.

Your client number appears on your On-Site and Remote Checks, in the electronic messages transmitted to WorldLink Payment Services, and in the communications you receive from WorldLink. You should use your client number on your remittances and for all your communications with WorldLink.

Transaction Reference Number

For CitiDirect Online Banking, a transaction reference number is assigned to each payment you initiate. For file transmission and payments via SWIFT, your organization assigns a transaction reference number to each payment request you initiate. These reference numbers allow WorldLink to track and report each payment and to provide customer service, as necessary. Whenever you have a question about a particular payment or need customer service concerning a payment, you must include its reference number in your request.

WorldLink Check Security

The check stock used for Remote Checks and the stock provided to your organization for On-Site Checks is a high-quality form with many security features incorporated to protect against fraud and counterfeiting including but not limited to:

¡ Fluorescent ink and fibers.

¡ Chainlink watermark.

¡ Chemical sensitivity.

¡ Toner grip.


¡ Void pantograph.

Once printed, each check has a unique nine-digit check number (serial number). This check number enables Citibank Europe to provide the following services for each check issued:

¡ Tracking the check.

¡ Providing you with the status of the check.

¡ Accounting for voided checks.

¡ At your request, initiating a stop payment on the check.

¡ Verifying that the check presented for payment matches the issuance information you submitted.

¡ Monitoring your check inventory so that it can be replenished when it begins to run low.

¡ Match Pay items—match the amount of the check against the issuance received.

Whenever you have a question about a particular check or need customer service concerning a check, you must provide the nine-digit check number of the check in question. For Remote Checks, you may provide the transaction reference number instead.

WorldLink Cash Security

When the beneficiary collects the cash from a Western Union agent, he/she will be required to identify the sender, location of origin and approximate amount to be received, present a valid government-issued photo ID, and may be required to answer a test question. In some locations, the beneficiary will be required to provide Western Union’s MTCN (Money Transfer Control Number). You are advised to check the requirements in the WorldLink Cash Country Service listing, as they may differ by country.

WorldLink Cash payments are low-value urgent payments, with a USD7,300 equivalent limit per payment. Please note, local country laws may further limit payment amounts. Therefore, prior to initiating a Cash payment, please refer to the WorldLink Cash Country Service listing for guidelines.

Currency Purchase Contract Rate Confirmation

When you receive a contract number for a currency purchase rate quotation, that contract number is your confirmation that you have accepted the rate and that the contract appears in WorldLink’s records. For a forward contract rate, you are sent a confirmation letter, which you must sign and return.

In addition, telephone conversations between you and a Citibank Representative regarding currency purchase quotations are recorded, as is customary practice in currency trading worldwide. This practice protects everyone in case of a miscommunication.

Message Transmission Security

File Transmission

Citibank Europe requires all electronic messages it receives from file transmission to be encrypted.

To protect a communication session against attacks, the data must be software encrypted. Software encryption provides the following services:

¡ Establishes the authenticity of the initiator to the target and the authenticity of the target to the initiator when the communications session is started.

¡ Ensures that the authenticity of the initiator and target established at the beginning of the protected session is maintained throughout the duration of the secured session.

¡ Protects the integrity of messages by calculating cryptographic checksums.

¡ Authenticates the identity of a message sender through the use of digital signatures.


¡ Protects the confidentiality of messages through encryption techniques.

¡ Detects whether a message has been received before or whether it is being received out of sequence.

WorldLink via CitiDirect Online Banking

WorldLink via CitiDirect Online Banking additionally provides firewalls, web access control, and non-repudiation to further protect your organization’s data.

¡ Firewalls. A firewall consists of hardware and/or software that form a security system to control access into or out of a computer environment.

¡ Web Access Control Mechanisms. Working with firewalls and software session encryption, web access control mechanisms manage these security items for communications between your browser and the CitiDirect Online Banking server.

¡ Authentication. Authentication is the means of providing user or system identities through such mechanisms as user name/password pairs, digital certificates, and smart cards.

¡ Data privacy and integrity. Encryption is used to ensure that information is kept confidential and that it is not changed during transit.

¡ Auditing and logging. Auditing provides the means of tracking security-related events.

¡ Management. WorldLink offers the ability to administer security permissions, users, and groups.

¡ Non-repudiation. Non-repudiation is the means of proving that a user actually sent the data received. It includes the following:

o Private key security. Only the authorized user has the private key for decryption o Digital signatures. A digital signature appears in all encrypted files or messages

SWIFT

WorldLink Payment Services via SWIFT is offered to its clients who are SWIFT members. The data security and integrity for this option are based on Citibank Europe’s policies, which comply with SWIFT rules, and your institution’s policies surrounding its use of the SWIFT network.

Additional CitiDirect Online Banking Security Features

Access Controls

WorldLink Payment Services via CitiDirect Online Banking provides additional security by offering flexibility in these access control features:

¡ User profiles and entitlements.

¡ IDs and passwords.

¡ Software time outs .

¡ Audit trails .

¡ Authorization required for security changes.

The implementation of these features varies by your organization’s requirements and is detailed in the CitiDirect Online Banking documentation.

User Profiles and Entitlements

User profiles and entitlements identify users and define the functions and processes they are allowed to use. For example, some users may be restricted to entering payments only through “preformats” (payment templates for repetitive payments). A user may be restricted to entering payments no greater than a specified amount. Or a user may be designated as an authorizer.


IDs and Passwords

Each user is identified by a user ID. Each action logged to the audit trail includes the user ID of the person who caused the action.

Each user requires a password to sign on to the software. CitiDirect Online Banking users are given a Safeword® Platinum card, which they use to generate a one-time only (dynamic) password.

Software Time Outs

If the WorldLink Payment Services application is idle for a pre-set amount of time—that is, the user has not used the keyboard or mouse within that period—the software automatically signs off that user.

Audit Trails

Through a variety of reports and event logs, you can monitor security and non-financial events for possible security violations.

Payment Security

WorldLink via CitiDirect Online Banking offers you flexible payment security features that help safeguard your transaction issuance. With payment authorization you have maker-checker controls over payments. These authorizations can be set by payment type, and can be multi-level.

Your installation can restrict users to initiate payments only from a library of repetitive payments called preformats. Another way to restrict entries is to require users to select from field libraries for beneficiaries, mailing addresses, beneficiaries’ banks, and intermediary banks.

If your organization has multiple operating entities, you can restrict a user to processing for only the entity specified in his or her user profile.

Your Security Provisions You must include these security provisions in your procedures for your use of the WorldLink system:

¡ Establishment of a secure environment and security procedures for the communication method you are using, including:

o Maker-checker control via independent authorization for Remote Checks, Funds Transfers, and Cross Border ACH payments

o Systematic record keeping and reporting through such methods as payment records, audit trails, access logs, and so forth

o Prompt reporting to WorldLink of fraudulently requested Funds Transfers, Remote Checks, and Cross Border ACH payments

o Establishment of a secure environment and security procedures when importing payment instructions into CitiDirect Online Banking

If you issue On-Site Checks you must:

¡ Establish a secure environment and security procedures associated with receiving and storing WorldLink On-Site Check stock, including but not limited to:

o Daily accounting by all check issuers of the checks they issued o Physical inventory reconcilement of check stock o Prompt reporting to WorldLink Payment Services of lost, stolen, destroyed, or unauthorized On-Site Checks o Prompt response to notices of paid, unadvised items (“PUA”) o Destruction of On-Site Check inventory upon termination of the use of WorldLink Payment Services, or a change

in your check format. You must supply WorldLink with a destruction certificate identifying the serial number of each On-Site Check destroyed


3 – Payment Types

Preview WorldLink Payment Services include the following types of cross-border payments. The types of payments that WorldLink will process for your organization depends upon the communication method you use and your agreement with Citibank Europe.

¡ WorldLink Funds Transfers. Electronic payments that you request WorldLink Payment Services to effect on your behalf. Over 130 currencies are available for Funds Transfers.

¡ WorldLink Remote Checks. Checks that you request WorldLink Payment Services to issue on your behalf. Over 30 currencies are available for Remote Checks.

¡ WorldLink On-Site Checks. Checks that you can initiate, print, and release directly from your offices. Over 16 currencies are available for On-Site Checks.

¡ Cross Border ACH Payments. Low-value clearing payments that you request WorldLink Payment Services to effect on your behalf. Eight currencies covering 18 countries are available for Cross Border ACH payments.

¡ WorldLink Cash. Allows you to send urgent low value cash payments in 190 countries and over 220, 000 locations worldwide.

The Reference Booklet lists the current currency offerings by payment type.

WorldLink Funds Transfers This section is applicable to your organization if you have been approved to use Funds Transfers as a payment type.

A Funds Transfer is an electronic payment that you have requested WorldLink to effect on your behalf. When you initiate a Funds Transfer, the WorldLink processing center located within the Citibank Europe funds transfer network (FTN) receives your payment instruction. The payment is enhanced with WorldLink Payment Services information needed for processing and then it is forwarded on to the appropriate processing center (currency center) based on the currency and country of the payment.

On value date the currency center will place the payment into the local clearing for that currency/country and debit WorldLink’s ’omnibus’ account. The clearing delivers the funds to the beneficiary bank for final credit to the beneficiary.

Final credit to the beneficiary is not under Citibank Europe’s control, but strictly depends on the policies and practices of the banks involved in the transfer. Citibank Europe can only guarantee that the Funds Transfer is placed into the clearing by the value date of the payment.

Not all countries have electronic clearing. In this case the processing center of the country of currency may issue a check or manager’s draft and hand deliver it to the beneficiary’s bank for final credit to the beneficiary.

Citibank Europe does not guarantee credit to the beneficiary on value date. Credit to the beneficiary strictly depends on the policies and practices of the banks involved in the payment order. There are many reasons a payment could be delayed or rejected before it reaches the beneficiary. These include, but are not limited to:

Incomplete or invalid payment information such as:

¡ Beneficiary’s account number in the format required by the local clearing or at the beneficiary bank.

¡ Beneficiary’s full and complete name as it is on record at the beneficiary’s bank.

¡ “By order of” party’s full name and address.

¡ “By order of” party’s account number. This account number equals your WorldLink client number, unless you are initiating the payment for another party. In that case, you must include the party’s account number with you in the “by order of” field.


For example: If Citibank, N.A., the WorldLink client and identified with client number 12345, sends a Funds Transfer “by order of” Smith Barney (SB), Citibank, N.A., must include SB’s account number with Citibank, N.A., in the “by order of” field.

Missing Intermediary Bank details. If the beneficiary bank is not a member of the local clearing for the currency, you are required to provide the intermediary bank details of a bank that is a member of the local clearing.

Invalid formatting of the payments instructions based on currency/country requirements. Many countries require specific formats for a Funds Transfer to clear. Others require specific information be included in the payment instruction. For example: The Central Bank of Thailand provides a list of reason codes, and requires that one of these codes is included in every payment instruction.

The Reference Booklet lists the current formatting requirements for structuring funds transfer payments.

Not passing OFAC screening. As mandated in the United States and the country of clearing of the Funds Transfer.

Supplying complete and accurate information will significantly reduce the chance of delays in processing the payment.

¡ Same Day/Next Day Currencies. WorldLink Payment Services offers same day/next day funds transfers on a commercially reasonable basis. The ability to provide credit to the beneficiary bank on value date is subject to a variety of factors, including but not limited to, receipt of instructions by applicable cutoff time, proper funding, sufficient credit, ability of beneficiary bank to receive electronic funds transfers, and intervening holidays and non-business days in country of currency. Funds Transfer instructions requiring repair may be delayed.

Your organization must be approved to use the same day/next day currency option. In addition, your delivery channel must specifically allow for this and the facility is restricted to certain currencies.

Sending Funds Transfers “Charges”

When you initiate a Funds Transfer request, the Funds Transfer is sent to the beneficiary’s bank for payment to the beneficiary. The Funds Transfer may be routed through an intermediary bank. On each Funds Transfer instruction, you have the opportunity to indicate how all charges, fees and other costs assessed by any correspondent bank or financial institution involved in effecting the Funds Transfer should be charged.

¡ “Charge Our” indicates you will pay the charges as the initiator of the Funds Transfer. In this case these charges will be included on your WorldLink Payment Services invoice.

¡ “Charge Bene” indicates the changes will be borne by the beneficiary of the Funds Transfer. Charges will be deducted from the final proceeds credited to your beneficiary.

¡ “Charge Share” indicates that the charges will be borne both by the initiator and the beneficiary. The initiator’s portion of the charges will be included in your WorldLink Payment Services invoice. The availability of the “shared charges” option is dependent on platform and on currency restrictions.

In connection with each “Charge Our” transfer, you are responsible for all charges, fees and other costs assessed by any correspondent bank or financial institution used to effect such transfer, unless specifically agreed to in writing. All such charges, fees and costs are in addition to the transaction fees charged by WorldLink for effecting your payment requests. All “Charge Our” fees and costs are payable upon demand.

“Bene Deduct” is an option available to Financial Institutions. With “beneficiary deduct,” a client can instruct Citibank Europe to reduce the amount of the Remote Check of funds transfer to cover their transaction fee by listing ’BEN’ in field 71A. Beneficiary deduct makes the transaction free to the client, as Citibank Europe essentially collects its fee from the beneficiary.

Prompt Reporting of Fraudulently Requested Transfers

As soon as you discover that a requested transfer has been fraudulently requested, immediately notify your Citibank Representative and describe the problem. WorldLink Payment Services will attempt to cancel or recall these items but it may not be able to do so.


WorldLink Remote Checks This section is applicable to your organization if you have been approved to use Remote Check as a payment method.

A Remote Check is a check that WorldLink issues for your organization according to the instructions you transmit to WorldLink. The value date of a Remote Check is the date that the check is printed, typically the day after your payment instruction is received.

When your payment instruction is received, it is verified to ensure you have provided sufficient information for WorldLink to issue the Remote Check on your behalf. WorldLink processes the request on the value date provided:

¡ The instruction passes the validity review.

¡ The transaction has been properly funded.

¡ Your request was received before the 12:00 P.M., Eastern Standard Time cutoff for processing Remote Check requests.

Once validated, your request is sent to the appropriate check processing center that prints and mails the Remote Check the next day.

Remote Checks are printed on check stock with the client advice at the top, control information and payment details in the middle. Your organization is identified on the check face or on the client advice, and an authorized Citibank Europe officer signs the check.

WorldLink Remote Checks are not for encashment but rather must be deposited. If the beneficiary presents the check directly to the drawee (the payable-at institution), the drawee may refuse to encash the item. To avoid misunderstandings between your organization and its beneficiaries, you should explain this non-encashment policy to your beneficiaries.

Remote Check Crossing

To help protect your organization and your beneficiaries from the risk of fraudulent encashment, WorldLink Payment Services crosses all Remote Checks denominated in currencies of countries that recognize crossed checks.

In crossing Remote Checks, WorldLink follows the crossing guidelines for each particular currency and/or clearing country. For example, in many countries, crossing consists of drawing two parallel diagonal lines in the center of the check, 10mm apart and 30mm long. In other countries, the lines may have some wording between them, may be vertical rather than diagonal, or may be placed to the left rather than centered.

Regardless of the placement and wording required for a particular country, crossing indicates that the check is not for encashment and can be cashed or deposited by the beneficiary only at the bank at which the beneficiary has an account whose name is the same as that of the beneficiary name written on the check.

The WorldLink Payment Services Reference Booklet provides a list of countries that require crossing and the specific crossing requirements.

Effect of Check Crossing on Your Remote Check Issuance

Crossed checks can only be deposited to an account whose name matches the beneficiary name written on the Remote Check. You must be careful to provide the correct beneficiary name in your Remote Check instructions. Misspellings or abbreviations may cause problems for beneficiaries when they try to deposit crossed checks.

Remote Checks should not be sent to a beneficiary who does not have a bank account or who is unable to deposit the item in his or her bank account.

Note: It is the responsibility of the first depositing bank to comply with the laws applicable to crossed checks. Citibank branches and affiliates cannot be responsible for the acts or omissions of that bank.


Remote Check Personalization

Your organization is identified on the Remote Check by printing in black your digitized logo or text. However, due to local country regulations, WorldLink Payment Services cannot print logos or text on all Remote Checks. Your organization will be identified on the client advice regardless of the currency and/or clearing country regulations.

Check Printing and Delivery

The printing location of Remote Checks is based on the currency and clearing country of the payment. Typically, Remote Checks denominated in North American currencies (i.e., U.S. dollar, Canadian dollar, and Mexican peso) are printed in the United States, Asian currencies (including Indian rupee, Indonesian rupiah, Australian dollar, and Singapore dollar) in Singapore, and all other currencies in Dublin, Ireland.

Remote Checks are sent via regular postal service. If the post office returns checks to WorldLink Payment Services as undeliverable, the return is forwarded to your organization for further action. As an alternative, you can request that WorldLink automatically stop returned Remote Checks and destroy them.

Prompt Reporting of Fraudulently Requested Remote Checks

As soon as you discover that a requested Remote Check has been fraudulently requested, immediately notify your Citibank Representative and describe the problem. WorldLink Payment Services will attempt to stop payment on these items, although it may not be able to do so.

WorldLink On-Site Checks This section is applicable to your organization if you have been approved to use On-Site Check as a payment method.

You print the On-Site Checks in your office, forward them to your beneficiaries, and transmit issuance information to WorldLink Payment Services. The day that you print the checks is known as the value date or issue date of the check.

On-Site Checks must always be printed on WorldLink’s On-Site Check stock. Your organization is the drawer of the check.

WorldLink On-Site Checks are not for encashment but rather must be deposited. If the beneficiary presents the On-Site Check directly to the drawee (the payable-at institution), the drawee may refuse to encash the item. To avoid misunderstandings between your organization and its beneficiaries, you should explain this non-encashment policy to your beneficiaries.

Check Stock

You are provided WorldLink check stock to use when issuing On-Site Checks. The type of check stock varies depending on your communication method and printing preferences.

WorldLink Payment Services via CitiDirect Online Banking

CitiDirect offers you two options for-issuing On-Site Checks:

¡ MICR Printed Checks—Using this solution you can print On-Site Checks with country MICR encoding where available. As local clearing requirements change, the updates are made in CitiDirect Online Banking by WorldLink Payment Services and are immediately available to you.

¡ Pre-encoded/Un-encoded Check Solution—You are provided USD, GBP, CAD and EUR (through Germany) check stock that has been pre-printed with the MICR line. A “multicurrency” check stock is also provided for printing the remaining 12 on-site currencies. This stock is unencoded.

Note: Unencoded checks may be viewed as exception or collection items as local clearing regulations change.

Generally, currency-specific MICR encoded stock moves through the country’s clearing system more efficiently.

Use the WorldLink Payment Services check stock ONLY for checks issued in WorldLink supported currencies and drawn on WorldLink payable-at banks.


While WorldLink On-Site Checks are in your possession, you are liable for any lost, stolen, misused, or fraudulently used checks. Therefore, you must handle your On-Site Checks with the same precautions you would use when handling cash and other negotiable instruments.

Citibank Europe will have no liability for and is indemnified by you against any claim arising out of:

(i) Any agreement or arrangement between you and any actual or prospective beneficiary of any payment.

(ii) The dishonorment of an On-Site Check due to non-matching issuance data provided by you (or for your failure to provide issuance data).

(iii) The loss, theft, destruction or unauthorized use of any On-Site Check after its delivery to your processing site.

(iv) If you failed to place a proper stop payment request in sufficient time to permit WorldLink to act on prior to final payment or acceptance of the On-Site Check.

Receiving Check Stock

As soon as your On-Site Checks are ordered, WorldLink Payment Services begins tracking the status. When the checks are shipped to you, you must acknowledge the shipment before the checks can be issued. If an On-Site Check that has a status of “shipped” is presented for payment, it may not be paid, because WorldLink does not know whether you ever received the check stock.

On-Site Check shipments arrive via courier. To maintain the security of your checks and avoid potential delays in payment, you should acknowledge the receipt of your shipment of On-Site Checks immediately.

Verify and acknowledge receipt of your check stock:

1. Upon receipt, compare the serial numbers or inventory control numbers (“ICN”) on the checks to the numbers listed on the packing report included with the shipment. The packing report provides details on the range of serial numbers or ICN numbers included in the shipment as well as any numbers that may be missing from the range of numbers.

2. Acknowledge receipt of your checks by mail, e-mail, fax or telex to WorldLink Payment Services. The following information must be included in your acknowledgement:

§ The serial number or ICN range included in your shipment. § Any missing checks not included on your packing report. § Details on your distribution of inventory if you have multiple issuing locations.

All communications regarding On-Site Check inventory issues should be addressed to WorldLink as listed in the “Customer Support” section of the WorldLink Payment Services Reference Booklet.

Guidelines for Administering Check Stock

You must establish procedures for administering the On-Site Check stock that you receive. WorldLink Payment Services recommends that you include the following practices in your procedures:

1. Distribute check stock among relevant personnel. These staff members should then be responsible for controlling the checks assigned to them.

2. Report as “void” any check stock that is damaged, used in training, printed in error, or otherwise unusable. Be sure to void this check stock in CitiDirect Online Banking, or notify WorldLink directly when using file or SWIFT.

3. If your organization has multiple issuing locations and WorldLink provides separate check stock for each location, each location must use only its own check stock. There must be no sharing of check stock among the issuing locations.

4. Store check stock in a secure location when the stock is not in use.

5. Periodically (or as requested by WorldLink Account Services from time to time), perform a trust reconcilement by auditing your check stock to verify that the actual check stock matches your inventory records.

6. As soon as practicable following termination of your use of WorldLink Payment Services, you will take an inventory of all On-Site Checks in your possession and then destroy or return to WorldLink all unused On-Site Checks. You will include a destruction certificate (in an approved form) identifying the serial number of each destroyed On-Site Check.


Checks Made Out to Bearer

Banks may choose not to accept for deposit checks that show no beneficiary or show “bearer” for the beneficiary. The clearing systems in some countries will not clear blank or bearer checks. To help your beneficiaries receive timely payments, always include the beneficiary’s name on the “Pay Against this check to” line.

Moreover, checks that show no beneficiary or show “bearer” for the beneficiary are not secure items because anyone may be able to deposit them. By using the actual beneficiary name on each check, you can better ensure that the intended beneficiary deposits the check. By reducing the risk that checks will be fraudulently used, you benefit your organization and your beneficiaries. Neither WorldLink Payment Services nor the drawee on a blank or “bearer” check can be responsible if your intended beneficiary does not receive the proceeds of such a check.

Citibank Europe will have no liability for and is indemnified against any claim arising out of any agreement or arrangement between you and any actual or prospective beneficiary of a Payment, and against any loss, claim or damage resulting from the issuance of a check made payable to ’Cash,’ ’Bearer’ or the like at your request.

Mailing an On-Site Check

Before an On-Site Check is mailed to your beneficiary, you are responsible for assuring that the following requirements are met:

¡ The check date is the current date.

¡ The correct check stock was used.

¡ The currency code is correct.

¡ The amount and currency are correct.

¡ The payable-at bank information is correct.

For CitiDirect Online Banking, payable-at information is kept up-to-date by WorldLink Payment Services. This information is automatically printed on the check.

For payable-at bank information, see the Reference Booklet.

¡ A euro check has the payable-at bank information, which is the most appropriate for the beneficiary so that the check clears locally and is less likely to incur cross-border collection charges.

¡ Your issuance complies with the restrictions and special requirements of the currency. If a currency requires special wording or crossing, CitiDirect Online Banking crosses the checks and prints the required wording on the check automatically.

If you are not using CitiDirect Online Banking to issue your On-Site Checks, you must manually add the crossing and special wording required by the in country clearing rules. (Restrictions, special requirements, and crossing guidelines by currency, can be found in the Reference Booklet.)

¡ An authorized person has signed the check.

¡ The check includes your organization’s name as drawer and your organization’s location.

¡ The check number matches the check number in CitiDirect Online Banking or in the file transmission or SWIFT message being transmitted to WorldLink. If these numbers do not match, a PUA condition will occur because WorldLink Payment Services will not be able to match the paid check to your issuance information.

If the check does not pass your verification review, do not release it. Void or stop it and issue another check that corrects the problems.


On-Site Check Crossing

Crossing is the practice of marking a check with certain symbols and/or wording in order to provide a measure of protection for the drawer and beneficiary if the check is lost or stolen. For example:

Countries around the globe recognize crossing, and in many countries crossing is mandatory for straight through clearing of checks. Two kinds of crossing are used. General crossing usually consists of drawing or stamping two parallel lines across the face of the check. In some cases wording appears between the two lines. Special crossing contains the general crossing lines and specific wording that further restricts the negotiation of the instrument.

A thief would find it difficult to obtain the proceeds of a crossed check, because crossed checks cannot be endorsed or transferred to someone other than the named beneficiary of the check. In addition, crossed checks are not encashable. They can be paid only into a bank account in the same name as that of the beneficiary.

You are responsible for crossing your On-Site Checks destined for beneficiaries in countries where crossing is recognized.

Crossing guidelines for each currency and/or clearing country that requires crossing are provided in the Reference Booklet.

Effect of Check Crossing Your On-Site Check

Crossed checks can only be deposited to an account whose name matches the beneficiary name written on the check. You must be careful to provide the correct beneficiary name on your On-Site Check. Misspellings or abbreviations may cause problems for beneficiaries when they try to deposit crossed checks.

On-Site Checks should not be sent to a beneficiary who does not have a bank account or who is unable to deposit the item in his or her bank account.

Note: It is the responsibility of the first depositing bank to comply with the laws applicable to crossed checks. Neither Citibank Europe nor any of its Affiliates can be responsible for the acts or omissions of that bank.

Voiding On-Site Checks

To void an On-Site Check, you must meet these two conditions:

1. You have the check and all copies in your possession or you know that the check was destroyed and

2. If you use:

CitiDirect Online Banking, you have not released the check.

OR

SWIFT or file transmission, you have not transmitted your check information to WorldLink.

If these conditions are met, you can void the check. For example, you should void checks under the following circumstances:

¡ There was an error in the check data that you did not detect until after the check was printed.

¡ The wrong check stock was used to print the check.

¡ The requester withdrew their request for a check after the check was printed.

¡ The check was destroyed or damaged during printing.

If the check does not meet the four conditions stated above, you cannot void it. You must request a stop payment. For stop payment request information, see the “Customer Service” chapter. If you have any doubts about whether to void a check or to request a stop payment on it, call your Citibank Representative.

If you have the check you have voided in your possession, you should destroy it so that it cannot be fraudulently used.


You will notify WorldLink Payment Services that you have voided On-Site Checks by using the void function of CitiDirect Online Banking or by including the check number of voids in the MT 110 and setting the amount to zero if you are using the SWIFT network or file transmission.

Resolving Paid Unadvised (PUA) Items

On occasion, On-Site Checks are presented to the payable-at bank before your issuance information has been received. When the payable-at bank is presented a check for which WorldLink Payment Services has not received issuance information, the item is called a “paid unadvised” (PUA) item.

A PUA item is cause for concern. It raises the question: Should the payable-at bank pay the item or not? If the payable-at bank does not pay it but the presentation was legitimate, funds are being unduly withheld from a beneficiary. If the payable-at bank pays the check and the presentation is illegal, your organization may suffer a financial liability. To balance financial risk and service to its clients, WorldLink Payment Services notifies your organization of each PUA item. The process followed depends on the amount of the check:

¡ 10,000 USD equivalent and greater.

¡ Less than 10,000 USD equivalent.

Prompt Reporting of Lost, Stolen, or Fraudulently Issued Checks

It is critical that Citibank Europe receive immediate notification if either of these circumstances occurs:

¡ WorldLink checks are lost, stolen, or fraudulently issued.

¡ Some situation occurs which would prevent the immediate return, if necessary, of WorldLink checks assigned to you, but not yet issued by your organization.

As soon as you discover that a WorldLink check is lost, stolen, or fraudulently issued, immediately notify your Citibank Representative, describe the problem, and request a stop payment on it.

Due to the risk of fraud caused by an institution not sending advice of check issuance to WorldLink Payment Services, you will be responsible for any losses resulting from fraud with respect to a PUA check. In addition, failure to provide timely advice of issuance information may result in checks being returned when they are presented for clearing. WorldLink Payment Services will not be liable for any loss or damage resulting from your failure to notify us of issuance information.

Check Fraud Responsibility

Check fraud is on the rise. Sophisticated copiers, printers and scanners make it easier than ever to create an authentic-looking check. From security features on our check stock to validation of certain issuance information against each item being presented for payment, Citibank Europe strives to mitigate the risk associated with check fraud, and requires you to assist us.

In addition to safeguarding check stock, never issuing checks payable to “bearer”, and always sending issuance information on the same day the check is issued, we also suggest that you:

¡ Closely monitor your WorldLink checks. Consider implementing internal processes with respect to following up with beneficiaries where a WorldLink check has been outstanding beyond what is considered a “normal” timeframe. You can request a quarterly “Outstanding Items Report,” listing all checks outstanding over 90 days to assist with this process.

¡ Consider making arrangements to engage a courier service to deliver WorldLink Payment checks directly to beneficiaries. If you are interested in making such arrangements you should coordinate through your Citibank Representative.

¡ Consider paying beneficiaries by means of a WorldLink Funds Transfer instead of via the WorldLink check payment option.

If you utilize WorldLink checks you should recognize that WorldLink does not assume responsibility for ensuring payment to the intended beneficiary. WorldLink’s responsibility ends when it issues a check, or in the case of Remote Checks, when it mails a check to the name and address supplied by you. In the event that you believe there has been fraudulent activity, you must


provide WorldLink Payment Services with certain documents (such as an “Affidavit of Forgery”) in order for us to assist in recovering funds. Although WorldLink will assist in recovery efforts, there is no guarantee that the recovery of funds will be successful and WorldLink does not assume responsibility for any losses related to any fraudulent item.

Cross Border ACH Payments This section is applicable to your organization if you have been approved to use Cross Border ACH as a payment method.

Cross Border ACH payments are available with both the file transmission and WorldLink via CitiDirect Online Banking communication methods.

Available in a variety of currencies, Cross Border ACH or low-value clearing payments are used primarily for non-urgent (minimum two-day value), predictable payments. (For a list of Cross Border ACH currencies, see the Reference Booklet).

Unlike WorldLink Funds Transfer payments, which are processed via the traditional SWIFT route via regional clearing systems, Cross Border ACH payments, are routed through local electronic clearing systems. There are advantages of using the local electronic automated clearinghouse (“ACH”) systems such as reduced costs including reduced lifting fees. However, there are also negatives such as value limitations, timing, and service support that need to be considered.

¡ Country Clearing Rules: Each country has its own cross-border ACH clearing standards. Payments not meeting those local requirements will be rejected by the local clearing and returned to the originator.

¡ No Amendments Allowed: Cross Border ACH payments cannot be amended. WorldLink screens all Cross Border ACH payment ins tructions to ensure that all required fields have been provided and that the value dates are valid. As is customary practice with Cross Border ACH payments, faulty Cross Border ACH payment instructions are not repaired but rather returned to your organization with a reason code that classifies the rejection.

The payment is again reviewed as it moves through the local clearing system and associated banks. If it cannot be processed for any reason, the payment will be returned in accordance with local practices.

For any rejected or returned payment instruction, you must resubmit the instructions once it has been corrected. After considering the rejection reason, you may also need to correct some underlying information in your records so that future payments of the same type will not be rejected.

¡ Value Dating: Although payment requests are acted on upon receipt, local value dating conventions will be used for processing the transactions. The date beneficiaries will receive credit depends on the local clearing system in each target country and whether intermediary banks are involved. Value date standards can exceed five days in some countries.

Local country restrictions, special requirements, and value date conventions can be found in the Cross Border ACH Country Rules section of the Reference Booklet.

Your organization is responsible for providing complete and accurate payment information so that the local clearing requirements are met. WorldLink will not be responsible for credit not reaching the beneficiary due to rejected or returned payment instructions.

Final credit to the beneficiary is not under Citibank Europe’s control. This depends on not only the local clearing rules as well as the policies and practices on the banks involved in the payment. Citibank Europe will not be responsible for any impact resulting form Cross Border ACH payments not reaching the beneficiary when expected.

WorldLink Cash This section is applicable to your organization if you have been approved to use Cash as a payment type.

WorldLink Cash services is offered via our partnership with Western Union. Cash services is offered in 190 countries and territories and over 220,000 locations worldwide.

Cash payments can be requested electronically. All WorldLink cash payments are routed to our partner, Western Union, for distribution at one of the Western Union locations. Please refer to the WorldLink Reference Booklet for the delivery channels supported for WorldLink Cash.


Upon proper ID verification, funds are available for beneficiary pick up at one of the Western Union locations. Country-specific requirements may apply. Please refer to the WorldLink Cash Country Service listing for details on country distribution rules.

There are advantages of using cash payments such as reduced costs including the elimination of lifting fees. However, restrictions may apply such as in country value limitations that need to be considered, as each country has its own dollar value limitation. Payments not meeting local requirements will be rejected and returned to the originator. Please refer to the WorldLink Cash Country Service listing for country specific guidelines.

For any rejected or returned payment instruction, you must resubmit the instructions once it has been corrected.

To ensure same day/next day value, you must honor the file transmission cut-off time of 12:00 p.m. ET.

There are several reasons a payment may not be paid to a beneficiary. These include, but are not limited to:

¡ Insufficient/improper beneficiary identification.

¡ Beneficiary unable to properly identify the sender, location of origin and appropriate amount to be received.

¡ Beneficiary failed to properly answer a test question.

¡ In country payment limitations.

¡ Not passing OFAC screening, as mandated in the United States.

Cash Charges

WorldLink Cash eliminates the imposition of lifting fees. The absence of lifting fees ensures that your beneficiary will not have to incur any additional fees to pick up a payment.

Prompt Reporting of Fraudulently Requested Transfers

As soon as you discover that a requested transfer has been fraudulently requested, immediately notify your Citibank Representative and describe the problem. WorldLink Payment Services will attempt to cancel or recall these items but it may not be able to do so.

Manually Initiated Funds Transfer

Manually Initiated Funds transfers is available to clients as a contingency means of effecting transfers the event of clients being unable to transact by normal electronic means.

Contingency Means of Communication Card (also known as: MIFT Rider) or its equivalent. Signing a “Contingency Means of Communication Card” allows your organization to take advantage of the Manually Initiated Funds Transfer (“MIFT”) process. MIFT enables you to take the following actions:

Use fax contingency when your normal means of communicating WorldLink Payment Services instructions is unavailable. If you are unable to transmit your payment instructions, you can fax payment instructions so that your payment process can proceed uninterrupted.


WorldLink Payment Services Options

Funds Transfers ACH Remote Checks On-Site Checks Cash

Payment Value

No Limitation Some limitations, varies from country to country

No Limitation No Limitation USD7,300 equivalent limit per payment. Local country laws may further limit payment amounts

Payment Timing

Urgent Payments

Normally have a two day value. Same/Next day available

Non-Urgent or Low-Value Payments

Two to five day value

Non-Urgent but need to be handled in an efficient & timely manner

Non-Urgent for cases where payments have to be handed over to the beneficiary

Urgent/Low-Value Payments

Normally have same day value

Payment Details

Structured messages that may need to contain information & special requirements to be processed

Structured messages that need to conform with local country ACH/GIRO rules

Optimal solution when complete beneficiary bank details are not known

Used if beneficiary information is limited

Structured messages that need to conform with Western Union guidelines

Clearing Cost Lifting fees vary by country and will impact the value of the payment

In most cases no lifting fee or clearing cost

Generally WorldLink checks are localized and do not attract clearing fees

Lifting fees may apply depending on check stock being used

No lifting fees

Inventory Management

Not applicable Not applicable Inventory is managed by Citibank

Managed by the customer

Not applicable

Payment Tracking

Payments are tracked to release to intermediary or beneficiary bank

Payments are tracked to release to the beneficiary bank

Payments are tracked from issuance to payment



Repairs and Investigations

Best efforts to repair and robust investigations process

No repair support—items requiring repair are returned, limited investigations process

No repair would be required, robust investigations process

No repair would be required, robust investigations process

Best efforts to repair and robust investigations process

Stop Payments/ Recalls

On a best efforts basis only

Dependent on individual country rules for recalls on a best efforts basis

Available for all currencies subject to country requirements

Available for all currencies subject to country requirements

On a best effort basis only


4 – Transaction Funding

Preview

The transaction funding process for WorldLink Payment Services gives you flexibility in the types of payments you can make, the currencies you can issue, and the way you fund for those transactions.

WorldLink payments are made from local currency accounts owned by Citibank Europe instead of bank accounts owned by your organization. Your organization funds Citibank Europe for these payments in the currency of your choice, via a single remittance (credit) to one of our designated “funding accounts.” When you initiate a payment, you identify the currency and account you will use to fund the payment. For all payments that are issued in a currency different from the funding currency, you purchase foreign currency contracts from WorldLink so you can pay for the transactions in the funding currency of your choice.

This chapter discusses these aspects of transaction funding:

¡ Funding Currencies. What currencies can be used for funding?

¡ Foreign Currency Exchange. How is currency obtained and the rates applied?

¡ Funding Amount. How is the funding amount calculated?

¡ Funding Methods. How are funds delivered to WorldLink Payment Services?

Funding Currencies

Funding currencies are the currencies you will use to fund your WorldLink. Your funding currencies do not have to be the same currencies as the payments you make, and, in fact, for most WorldLink Payment Services, the funding currency and the payment currency are different. Many organizations use only one funding currency. This allows you to close under-utilized accounts, and streamline your organizational processes.

WorldLink Payment Services supports over 31 funding currencies. For the available funding currencies, see the “Funding Currencies and Remittance Details” table in the Reference Booklet.

Foreign Currency Exchange

With WorldLink Payment Services you can make payments in over 130 currencies and fund those transactions in one or more funding currencies of your choice. Whenever the payment currency is different from the funding currency, a foreign currency conversion is involved. For example, if the funding currency is U.S. dollar and the payment amount is 1,200 Singapore dollars, you will need to purchase a foreign currency contract for the U.S. dollar equivalent of 1,200 SGD.

When obtaining rate quotes and purchasing foreign currency, all payments in the same payment currency and funding currency are aggregated to provide you with the most favorable rates. For example:

¡ If you are sending sixty payments in Pound sterling (GBP), each being funded in euro (EUR), a single currency contract will be purchased to cover all sixty Pound sterling payments.

¡ If you have eighteen payments in Hong Kong dollar (HKD) all funded in Australian dollar (AUD) and ten payments in Mexican peso (MXN) being funded in Canadian dollar (CAD), you will purchase two currency contracts: one for the Hong Kong dollar purchase and one for the Mexican peso purchase.

¡ If you have three Swiss franc (CHF) payments being funded in U.S. dollar (USD) and two Swiss franc (CHF) payments being funded in Pound sterling (GBP), you will purchase two currency contracts: one for the funding in U.S. dollar and one for the funding in Pound sterling.


Telephone conversations between you and WorldLink Payment Services representative regarding foreign currency exchange are recorded, as is customary practice in foreign currency exchange trading worldwide. This practice protects everyone in case of a miscommunication.

Any rate quoted or applied by WorldLink Payment Services in accordance with this manual is effective regardless of the authority of the person in your organization requesting or receiving these quotations. The rate applies only on the date specified and must not be used for other dates or purposes.

Citib ank Europe, including any of its affiliates and subsidiaries, relies on the payment information you provide and cannot be liable for errors or omissions in such information, or for your failure for any reason to issue On-Site Checks and/or request Remote Checks or initiate transfers and/or other disbursements in accordance with such information. You are responsible for reimbursing Citibank Europe, including its affiliates and subsidiaries, when invoiced, for any loss, cost or expense which Citibank Europe or any affiliate or subsidiary incurs because of such error or failure.

If a payment must be reversed or money refunded (due to, among other things, a returned or rejected instruction or a recall or cancellation) and a currency conversion is required in order to effect such reversal or refund, all related costs (including any loss on the foreign currency exchange) shall be your responsibility. With respect to any amounts owed to you, Citibank Europe is authorized to credit such amount back to the account from which the remittance was sent or, if that is not practicable, to any account of yours maintained at Citibank.

For currencies identified as tertiary, WorldLink reserves the right either to re-price a foreign exchange transaction at the prevailing market rate or cancel the foreign exchange transaction if:

1) If there is a material movement in the exchange rate, as determined solely by Citibank Europe; or

2) There is an inconvertibility event between the time the FX rate is quoted to you and the time you provide complete payment instructions to WorldLink; or

3) Your properly formatted payment instructions or your covering funds are not received by WorldLink within 10 days of the date of the foreign exchange rate quote.

Rate Quotation Formats

Three rate quotation formats are supported by WorldLink—Divide, Multiply and Interbank. During implementation, you determine the format for your rates.

All Divide

Rates are quoted in terms of the number of payment currency units that equal one funding currency unit. In other words:

Total Payment Currency v Rate = Funding Currency

For example, if you are making Canadian dollar (CAD) payments that will be funded in U.S. dollar (USD), the total CAD amount is divided by the rate to determine the USD funding amount.

1,000 CAD/1.3250 = $754.72

All Multiply

Rates are quoted in terms of the number of funding currency units equal to one unit of payment currency, or:

Payment Currency u Rate = Funding Currency

For example, if you have initiated Japanese yen (JPY) payments to be funded in U.S. dollar (USD), the total JPY amount is multiplied by the rate to determine the USD equivalent.

1,000,000 JPY u .009009 = $9,009.00

Interbank

Rates are quoted based on market convention of the funding currency:

¡ Funding in USD—All rate are dividers except pound sterling (GBP), Australian dollar (AUD), New Zealand dollar (NZD), and euro (EUR).


¡ All Other Funding currencies—All rates are expressed in multiply terms (see above).

Rate Quotation Types

WorldLink Payment Services supports spot, daily, and forward foreign currency exchange rates. The type of rates your organization uses and the way WorldLink provides your rate quotations depends on your communication method.

Spot Rates

Spot rates are based on the market (Interbank) rate at the time the contract is purchased.

There are three ways to obtain spot rates: calling the WorldLink Currency desk, using OLR, and having WorldLink automatically apply the rates.

Calling a WorldLink Foreign Currency Representative

In this method—sometimes called ’manual rates’—you call a WorldLink Foreign Currency Representative with your currency requirements and they will provide you with contract numbers confirming your currency purchases.

Using the Online Rates Facility

With online rates, when you are ready to purchase currency, a connection to the OLR is established and your currency requirements are communicated to OLR. OLR then returns rates to your system for your review.

Once rates have been received, you have the opportunity to accept (or reject) each rate. For accepted rates, OLR assigns a contract number to each transaction. This contract number is your confirmation of the currency purchase. If you reject a rate or one cannot be quoted online, you must call a WorldLink Foreign Currency Representative for a rate quotation and contract.

WorldLink Payment Services Automatically Apply Rates

For File Transmission. WorldLink Payment Services automatically applies spot rates to payment requests contained in your payment order file. Automatic rates are not available if you issue on-site checks and report their issuance in your payment file.

You do not receive pre-notification of rates if WorldLink automatically applies them. Conversion rates and contract numbers are reported to you in return files and/or reports after they have been applied and your payments have been processed.

For SWIFT. Spot rates can be automatically applied to your funds transfer requests upon receipt of the SWIFT message. For Remote and On-Site Checks, rates cannot be automatically applied, and you must call for contracts.

As with file transmission, if rates are automatically applied to your Funds Transfers, they are applied without prior notification to your organization. After the close of business on the day on which the payment order was received, WorldLink Payment Services sends a SWIFT MT 950 to your institution informing you of the rates applied to the funds transfer requests received.

Daily Rates

Daily rates are rates that are guaranteed throughout the working day. Daily rates are received at the start of your business day and can be applied to your payments for the entire day. Daily rates are valid only for amounts under a specified threshold. Contract amounts over the threshold amount are quoted at a spot rate.

Daily rates for WorldLink Payment Services via SWIFT users are provided in the form of an MT 999 message. If you use WorldLink via CitiDirect Online Banking, daily rates are available online like spot rates.

Please note that daily rate quotations cannot be provided for all currencies.

Forward Rates

To purchase forward contracts, your organization must be approved and must have signed a forward contract. In addition your delivery channel must be specifically configured to allow for forward contracts. Forward contracts must be settled according to the remit due date identified for your organization.


A forward rate is a rate for purchasing currency on a specified future date. The period of time between obtaining the forward foreign currency contract and the value date of the contract is called the tenor. A forward contract has a tenor greater than seven days.

When you purchase a forward contract, you commit to a rate on the current date (trade date) for a currency and amount to be utilized on a specific delivery date (value date) in the future. Your remittance for a forward contract is due on the value date of the contract.

Available Currencies

The currencies listed in figure one are those commonly traded in the forwards market. They are also the allowable funding currencies for forwards. If you have a need for a forward contract in a currency not listed, contact your WorldLink Foreign Currency Representative.

Figure One: Currencies Commonly Traded in the Forwards Market

Australian Dollar AUD Canadian Dollar CAD

Danish Kroner DKK Euro EUR

Hong Kong Dollar HKD Japanese Yen JPY

New Zealand Dollar NZD Swedish Krona SEK

Swiss Franc CHF U.K. Pound Sterling GBP

U.S. Dollar USD Note: At times, due to market conditions, forward rates in one or more currencies may not be available when you request them.

Forwards Process

A simple process establishes the forward contract and ensures that funds are available for your payments:

1. Obtain the forward contract. You can either call a WorldLink Currency Representative for a forward contract or, if you use CitiDirect Online Banking, obtain it via the Online Rates facility.

§ The day you obtain a forward contract is known as the trade date. 2. Sign and return the foreign currency exchange confirmation letter you receive from WorldLink Payment Services. The

WorldLink Currency Representative mails the foreign currency exchange confirmation letter of the forward contract to you on the business day following the trade date.

§ On the remit due date; settle the forward contract. If you remit manually, initiate the remittance through your bank for the remittance amount required such that Citibank Europe receives your remittance by the cutoff time on the remit due date.

§ If you remit via automatic debit, the proper instructions are sent as part of your payment issuances.

Foreign Currency Exchange Confirmation Letter

On the business day following the trade date, WorldLink sends you via mail a foreign currency confirmation letter of the forward contract.

When you receive the foreign currency confirmation letter, review the information on it:

¡ If the information is correct: Sign the confirmation letter and return it via mail or fax. The confirmation letter lists the mailing address and fax number.

If you fax the confirmation letter, you must also mail the signed original to WorldLink Payment Services.

¡ If there is a problem with the foreign currency confirmation letter: Contact your WorldLink Foreign Currency Representative immediately.


The confirmation letter should be returned within 24 hours of your having received it. If WorldLink does not receive the signed confirmation letter within seven business days, a Citibank Representative will follow up with you. This telephone conversation may be recorded.

Funding Amount

The funding amount, also known as settlement amount, is the total value of each funding currency that you owe WorldLink for your WorldLink transactions. It includes the currency amount resulting from foreign currency contracts, when the payment currency does not equal funding currency, plus the currency amount of non-foreign currency payments, that is, those payments made in the same currency as the funding currency.

All amounts remitted to Citibank Europe to cover payments are the property of Citibank Europe and are not deposits. Nothing herein shall constitute Citibank Europe as a trustee for you.

Funding Methods

WorldLink Payment Services offers two funding methods: automatic debit and manual remittance. This section discusses each method.

Automatic Debit (Autofunding)

Citibank Europe debits your designated funding account or accounts for the total funding amount on your remit due date. You are responsible for ensuring sufficient funds are available in your funding account so that the debit can be made.

Funding Accounts for Automatic Debit

Funding accounts are your bank accounts that have been qualified for funding your WorldLink Payment Services transactions. If your funding account is located at a Citibank branch, affiliate or subsidiary, a Funding Account Direct Debit Authority may be required. This includes any account listed on your CitiDirect Online Banking Account Management table in CitiDirect, or listed in the payments instructions sent in via file or SWIFT. Selection of an account from the Account Management table, or designation of an account as the funding account in a file transmission or SWIFT message constitutes authorization for WorldLink to automatically debit this account for your WorldLink funding requirements.

If you have a qualified non-Citibank account that can be auto-debited, then you must sign a Funding Authorization/Debit Authorization form.

Manual Remittance

When your funding account is not automatically debited, your organization is responsible for remitting the funding amount via electronic funds transfer. It is your responsibility to ensure good funds are received by your remit due date.

The following information must be included in your funds transfer to ensure proper credit of your remittance. The information should be included in the Payment Details or Bank Details (Sender to Receiver information) field:

¡ Five-digit WorldLink client number.

¡ Name of your Organization.

¡ Issuance date (optional, but recommended).

For the funding locations and associated cutoff times for good value, see the “WorldLink Funding” table in the Reference Booklet.

Be sure that the amount Citibank Europe receives is the entire amount due. Any fees or charges assessed by correspondent banks to deliver funds to WorldLink are your responsibility.


Remit Due Date

The remit due date is the date by which the funding amount for your WorldLink transactions must be received, and available. Prior to start-up, you are notified of the remit option for your organization. The remit option identifies when available funds for your currency purchases and non-foreign currency payments are due. It is based on either the issuance date or value date of the payments.

If your organization fails to remit for your WorldLink transactions, by the remit due date, a special late remittance fee may be assessed. In addition, late funding may delay the processing of your payments and may result in checks being returned when presented for payment, due to insufficient funds.

If you fail to pay any amount when due, Citibank Europe may,

(i) Stop payment on, dishonor, cancel or recall any payment for which you owe such amounts.

(ii) Satisfy the amount owed by reallocating and applying other amounts paid by or owed to you by Citibank Europe, including without limitation funds paid or transferred to, or held by, any drawee on a check, even if the amount is owed to a party other than such drawee.

(iii) Charge interest on unpaid amounts until paid in full.

(iv) Exercise any other rights and remedies that Citibank Europe may have. In addition, upon failure to pay any amount when due, your authority to issue checks will be revoked and Citibank Europe will assume no liability with respect to any check issued after the date of revocation.

In some countries, the return of checks for insufficient funds can lead to criminal liability for your organization and/or for your employees.

If you remit via automatic debit, WorldLink Payment Services debits your funding accounts on the remit due date. If you manually remit via a client-initiated transfer, your funds must be received by the cutoff time at the Citibank Europe funding location on the remit due date. If the remit due date falls on a day that is a non-business day in the country of the funding account, remittance is required on the next business day.

For the funding locations and associated cutoff times for good value, see the “WorldLink Funding” table in the Reference Booklet.


5 – Reconcilement

Preview

Reconcilement services are an important benefit of your use of WorldLink. The reconcilement service provides reduced delays in the processing of payments and reduced funding discrepancies. The exact delivery of information from your offices to WorldLink Payment Services depends on the communications method and funding method you use.

Information for Reconcilement

WorldLink reconciles transaction issuance, foreign currency contract, funding information, paid item information, paid out, and check stock usage. All reconcilement features below, except for Check Stock Information, are applicable to cash payments:

¡ Issuance Information. WorldLink receives issuance, as well as voided check information from the files or messages you transmit to Citibank Europe.

¡ Foreign Currency Contract Information. Foreign currency contract information is received in two ways: from the information you transmit and from the WorldLink Foreign Currency system.

¡ Funding Information. Your transmitted issuance and contract information identifies funding requirements. Information on the receipt of your funding by Citibank Europe—whether via automatic debit or manual remittance—comes from the Citibank Europe funding locations.

¡ Paid Item Information. For On-Site and Remote Checks, paid item information comes from the currency center—whether Citibank branch, subsidiary, affiliate, or correspondent—that clears the WorldLink check payment.

¡ Paid Out Information. For Cash payments only. Provides confirmation of cash pick up by your beneficiary.

¡ Check Stock Information. Your transmitted check issuance and void information identifies what your check stock usage has been.

Types of Reconcilement

WorldLink Payment Services monitors postings of payments and funding transactions to ensure accurate reconcilement of your information to our records. WorldLink Payment Services provides the following types of reconcilement. If the reconcilement uncovers exceptions, a Citibank Representative notifies you and assists you in correcting any problems.

¡ Issuance to Funding. This reconcilement ensures that the funding locations have received sufficient funds to effect or clear your payments. When funding for your WorldLink transactions is received, the currency and funding amount are reconciled to the information you transmitted to WorldLink.

¡ Foreign Currency Contracts to Funding. Your transaction funding must cover the currency contracts you obtained and all payments where the funding currency and payment currency are the same. Contract information from the WorldLink Foreign Currency Exchange system is reconciled to the funds received by WorldLink Payment Services.

¡ Issuance to Paid Items. Your issuance information is reconciled to items presented for payment.

¡ Check Stock. Your check usage is monitored so that your check stock can be automatically replenished when it falls below a certain threshold.

Reconcilement Information

For your reconcilement, you can request an outstanding items report to be sent to you on a periodic basis. In some instances, you may also receive confirmation of transactions WorldLink Payment Services processes.

If you fund via automatic debit, your bank account statement will reflect the debit to your account to fund for your WorldLink transactions.


File Transmission—Additional Information

Whenever WorldLink Payment Services has payment information for you, it transmits or e-mails information to your organization. This information can include confirmation of the receipt of your payment instructions, accounting data, and other information concerning the payment instructions. This includes paid item information, returned items, and rejected items.

In addition to the payment information, on a daily, weekly, or monthly basis, you can receive paid and stopped check information. This information lets you know of all checks that were paid or have a stop payment against them.

For additional information on the payment order confirmation information you receive, see specific File Transmission documentation.

WorldLink Payment Services via SWIFT—Additional Information

To support your in-house reconcilement process, WorldLink Payment Services via SWIFT provides your institution with a special MT 950 message detailing only your WorldLink via SWIFT funds transfer activity. It displays all funds transfers effected for an individual date. The appearance of the MT 950 will vary according to the funding method your institution uses and whether you use WorldLink’s automated foreign currency capabilities.

For Remote Checks you have ordered, you will receive a separate MT 950 for each currency in which you have requested Remote Check payments. If WorldLink debits your Citibank, N.A., (New York City) U.S. dollar bank account to fund your institution’s U.S. dollar Remote Checks to fund only your institution’s USD Remote Checks, the MT 950 message from that bank account will contain a field 61 that shows the lump sum debit. You can identify this field by the reference UPPmm/dd/yy following the debit information.

For On-Site Checks, since you are providing WorldLink with the issuance and funding information, there is no MT 950 statement provided.

For additional information and examples of the MT 950s, see the WorldLink via SWIFT User Guide.

This service is not applicable to Cash payments.

Financial Difference Statement When a financial difference related to the funding of your WorldLink Payment Services is identified, you will receive an initial communication that describes the difference and the steps you should take to resolve it. Then, each month in which your organization has outstanding financial discrepancies, you will receive a Financial Difference Statement that provides information about the discrepancies.

The Financial Difference Statement has the following features to help you identify and resolve discrepancies so that your WorldLink payments can continued to be delivered in a timely manner.

Summary of Outstanding Financial Differences

The summary provides a listing of items involved, the financial impact of the items, and identifying information. The summary list is arranged first by currency and then by date within currency.

Detailed Explanation and Suggested Corrective Action

Following the summary sheet, you will find one or more pages containing a detailed explanation of each financial difference item. The detail is presented in the same order as the summary list.

The Discrepancy column will contain identifying information. The Explanation column will identify the most likely cause of the discrepancy. The Action Requested column explains what steps you should take to resolve the difference.

Name and Telephone Number for Assistance

WorldLink Payments Service Representatives are always available to help you. If you need additional information or assistance in resolving a financial difference, your WorldLink Account Balancing Representative is ready to help.


If your organization receives a Financial Difference Statement, you must investigate and resolve the discrepancy within 30 days. In the case of a refund that you are due, the resolution is to request the refund in the manner that you normally request refunds.

If you fund for your WorldLink transactions via automatic debit, financial differences are less likely to occur because your funding account or account(s) are automatically debited for your remittance amount.


6 – Service Requests

Preview As you use WorldLink Payments Service, you may need information on the following:

¡ Stop payment on an On-Site or Remote Check.

¡ Request a recall of a Funds Transfer Cross Border ACH or Cash payment.

¡ Learn the status of an On-Site check, Remote Check, or Funds Transfer.

¡ Obtain a photocopy of a paid On-Site or Remote Check.

This chapter begins with some customer service notes. It then provides information on customer service requests for each payment type. Citibank services contacts are listed in the Reference Booklet under “Customer Support.”

Customer Service Notes

Call Back Procedures

As a security measure, WorldLink Payment Services will call your organization’s primary contact to confirm your telephoned recall, cancellation, or stop payment request or may ask you to confirm your request with a signed letter on your organization’s stationery.

Have Reference Numbers Available

Before you contact Citibank Europe for a service request, be sure you have the On-Site Check serial number, the Remote Check serial number or transaction reference number; the Funds Transfer transaction reference number, or the Cross Border ACH transaction reference number.

¡ For File Transmission, the Remote Check serial number, Funds Transfer transaction reference number, Cross Border ACH transaction reference number and Cash transaction reference number are furnished in the payment order confirmation information received from WorldLink.

¡ For CitiDirect Online Banking, payment reports list the On-Site Check serial number and the transaction reference number for other payment types. Not applicable for Cash payments.

¡ For WorldLink Payment Services via SWIFT, use the transaction reference number from field :20: of the MT 103 message for Remote Checks and Funds Transfers and your records for On-Site Checks. Not applicable for Cash payments.

Contingency Means of Communication Card and Standing Order for Refunds

These two documents broaden the range of customer service you may receive. Before Citibank can act on either of these documents, your organization must have signed them and they must be on file with the Citibank funds transfer operations center.

Contingency Means of Communication Card (also known as: MIFT Rider) or its equivalent. Signing a Contingency Means of Communication Card allows your organization to take advantage of the Manually Initiated Funds Transfer (MIFT) process. MIFT enables you to take the following actions:

¡ Amend funds transfers by fax.

¡ Provide refund instructions on a per-transaction basis by fax or mail.


Registering a Contingency Means of Communication Card (CMOCC) generally takes three to five days, and Citibank recommends that your organization sign the CMOCC before you need the services it provides.

Standing Order for Refunds. This document identifies the account you authorize WorldLink Payment Services to credit for refunds rather than to have the refund credited to the account that originally funded the payment.

Refunds

With respect to any amounts owed to you by Citibank Europe, Citibank Europe is authorized to credit these amounts back to the account from which you funded the relevant payment or, to any account you maintain at Citibank Europe.

As a result of the following activities, WorldLink may need to return funds to your organization:

¡ Stopped checks .

¡ Recalls and returns for Funds Transfers.

¡ Rejects or returns for Cross Border ACH payments.

¡ Other credit balances.

¡ Uncollected Cash—Cash payments not collected by a beneficiary.

Credit Account. A refund can be credited in one of five ways:

¡ Standard for CitiDirect Online Banking. The credit is placed in CitiDirect Online Banking for your use. Within CitiDirect you can either reuse the currency when making other payments or refund the credit back to an account of your choosing.

¡ Standard for File or SWIFT . The account that originally funded or was auto-debited for the transaction is the one that is credited with the refund.

¡ According to Standing Order for Refunds. The account you specified in a Standing Order for Refunds is credited.

¡ According to the MIFT Rider. You initiate a request for refund on a transaction basis, identifying the account that should be credited for the transaction.

Status Requests

You can request the status of an On-Site Check, Remote Check, Funds Transfer Cross Border ACH payment via CitiDirect Online Banking service for payments, a SWIFT service message, or by contacting your Citibank Representative. If you are calling from North America, you can also obtain on-site check and Remote Check status by using the Citibank Voice Response Status System.

For Cash payments, you can receive Paid Out and Stop details via file transmission and Online Reporting or by contacting your Citibank Representative.


Requesting the Status of On-Site Checks You can request information about the status of an On-Site Check at any time by telephone.

Using the Citibank Voice Response Status System

If you are going to be using the Voice Response Status System, you must use a touch-tone telephone. When you call, the following takes place.

¡ The Status System collects information from you to identify the type of inquiry you are making.

¡ The Status System prompts for the entry of information to identify the check. After each entry, your response is repeated and you are asked to confirm it.

¡ The Status System responds with the check status if it is paid, outstanding, stopped, or paid without issuance.

Requesting Status from a Citibank Representative

Step Action

1 Contact Customer Service via telephone to request the status of the check. (For the telephone number, see the Reference Booklet.)

2 Tell the Citibank Representative that you are requesting the status of a WorldLink Payment Services check and provide the following information:

o Nine-digit check number o Date the check was issued, if known o Amount and currency of the check o Your check client number

3 Your representative provides status information, as described below.

Status Information Provided for Checks

Status Meaning

Shipped The check stock was shipped, but your organization has not acknowledged its receipt.

Acknowledged The check stock was shipped and your organization acknowledged receipt of it. The check has not been reported as issued or paid.

Outstanding Your organization reported the check as issued, but it has not been presented for payment. This status does not mean that WorldLink Payment Services is guaranteeing payment of the check.

Paid The check has been paid.

Void The check was reported as void.

Stopped There is a stop payment on the check.

Stop without advice of issuance (SUA)

The check has been stopped. However, your issuance information has not been received.


Requesting the Status of Remote Checks You can request information about the status of a Remote Check at any time by telephone.

Using the Citibank Voice Response Status System

If you are going to be using the Voice Response Status System you must use a touch-tone telephone. When you call, the following takes place.

¡ The Status System collects information from you to identify the type of inquiry you are making.

¡ The Status System prompts for the entry of information to identify the Remote Check. After each entry, your response is repeated and you are asked to confirm it.

¡ The Status System responds with the check status if it is paid, outstanding, stopped, or paid without issuance.


Step Action

1 Contact Customer Service via telephone to request the status of the Remote Check. (For the telephone number, see the Reference Booklet.)

2 Tell the Citibank Representative that you are requesting the status of a Remote Check and provide the following information:

o Nine-digit check number or 16-digit transaction reference number o Date the check was issued, if known o Amount and currency of the check o Your check client number

3 Your representative provides status information, as described below.

Status Information Provided for Remote Checks

Status Meaning

Outstanding The Remote Check has been issued on your behalf and mailed to the designated party. The Remote Check has not been presented for payment. This status does not mean that WorldLink Payment Services is guaranteeing payment of the Remote Check.

Paid The Remote Check has been paid.

Stopped There is a stop payment on the Remote Check.


Requesting the Status of Funds Transfer Cross Border ACH and Cash You can request information about the status of a Funds Transfer or Cross Border ACH payment value-dated no earlier than a year before the current date. If the beneficiary has not received available funds and it is at least a few days past the payment value date, you can request that WorldLink investigate the payment. This is called a bene non-receipt claim. Response from the intermediary banks and the beneficiary’s bank may take a while. Citibank Europe will keep you informed of its progress in the investigation.


Step Action

1 Contact Customer Service via telephone to request the status of the transfer. (For the telephone number, see the Reference Booklet.)

2 Tell the Citibank Representative that you are requesting the status of a Funds Transfer and provide the following information:

o 16-digit transaction reference number o Value Date o Amount and currency of the payment o WorldLink client number

3 Your representative then investigates the status and contacts you with the information.

Check Stop Payment Requests You can request a stop payment on any issued On-Site or Remote Check that is unpaid and still outstanding. Certain limitations apply depending on local country regulations. WorldLink cannot process a stop payment request on an On-Site or Remote Check that has been paid or voided. If the On-Site or Remote Check has been paid, you can request a photocopy of the item.

If the On-Site or Remote Check has not been paid, your stop payment request is forwarded to the payable-at (drawee) bank, the bank where WorldLink Payment Services maintains its account.

¡ For many currencies, stops can be processed immediately. For these currencies, you are issued a stop payment reference number immediately.

¡ For countries where stops cannot be applied immediately, WorldLink Payment Services will begin the stop process. You will be provided the stop reference number once the stop has been placed.

Additional documentation or information may be requested from you before the stop process can be completed. For example, checks clearing in France cannot be stopped for reason of lost or stolen, without a written declaration form signed by the beneficiary.

Whether the payable-at bank can, in fact, honor your stop payment request if the check is subsequently presented for payment, depends entirely on the policies and procedures of that bank and on its local laws and regulations. Citibank Europe will not be responsible for losses resulting from stopping payment on the check as you have requested. If the check must be honored despite your request, you will then be requested to fund the amount of the check.

The table entitled ’Stop Payment Guidelines‘ in the Reference Booklet provides a current understanding of the stop restrictions and requirements associated with each of the WorldLink check currencies. There may be additional stop restrictions for these currencies. WorldLink offers the Stop Payments facility on a best efforts basis. WorldLink cannot guarantee that the stop request will be processed. The operation of this facility is subject to local country laws and regulations.


Requesting a Stop Payment

The table below summarizes the main steps you follow to request a stop payment via telephone. For requesting a stop payment using the Service for Payments module of CitiDirect Online Banking, see online help. For requesting a stop payment through WorldLink Payment Services via SWIFT, see the Management Guide for WorldLink via SWIFT.

Requesting a Stop Payment

Step Action

1 Contact Customer Service via telephone to request a stop payment. (For the telephone number, see the Reference Booklet.)

2 In your stop payment request, tell the Citibank Representative whether you are requesting a stop payment on a WorldLink On-Site Check or a WorldLink Remote Check and provide as much of the following information as you can. By providing complete information, you reduce your risk of requesting a stop on the wrong check.

o Your check client number o The nine-digit check number (serial number). For a Remote Check, you can provide the transaction

reference number if you do not know the check number o The amount and currency of the On-Site or Remote Check o The issue date of the On-Site Check or the value date of the Remote Check. (The value date of an On-

Site Check is the date that you printed it. The value date of a Remote Check is the date that it was printed)

3 If the check has been paid, it cannot be stopped. If the check has not been paid, the representative gives you a stop payment reference number, indicating that the stop payment has been placed.

Note: If the check is in a currency/country where stops cannot be processed immediately, WorldLink Payment Services will begin the stop payment process. You will be notified when the stop has been placed and will be given a stop payment reference number at that time.

4 After you have received a stop payment reference number, your refund will be processed by WorldLink Payment Services or by you, depending on your agreement with WorldLink.

Providing Information to WorldLink Payment Services

You are responsible for providing correct information when you stop a check. This includes the WorldLink Payment Services client number, the check serial number or transaction reference number, and the check amount and currency.

Your check cannot be stopped if the information in your request does not match the information in our records. If WorldLink’s records do not contain a currency and amount (because your issuance information has not been received yet), the stop payment will be processed without this information, but you will not be eligible for a refund until issuance details have been received.

Stop Payment Reference Number

If the check has not been paid and the drawee bank can process the stop payment immediately, you are given a stop payment reference number.

If the check has not been paid but the drawee bank cannot process the stop payment immediately, WorldLink Payment Services will begin the stop payment process. When the drawee bank acknowledges receipt of the stop payment request, you are notified of the stop payment reference number electronically or in writing, responding in the same way that the stop request was initiated. Until the stop payment reference number is received, the check can still be paid. Only when you receive the stop payment reference number can you receive a refund for the currency.

Canceling a Stop Payment

You may need to cancel a stop payment. To do so, you must send a signed letter on your organization’s stationery to the WorldLink Payment Services operations unit requesting a stop payment cancellation. A stop payment remains in effect until the


written order from you is received and processed or as otherwise provided in the stop payment restriction information for the currency of the stopped check.

Because of local banking practices, if a check or a Remote Check has been presented and is returned unpaid, the beneficiary may not be able to present the check again even though the stop payment request has been canceled.

A stop payment can be canceled only if you have not already received a refund or credit for the currency.

Check Photocopy Requests You can request a photocopy of a paid on-site check or Remote Check at any time.

For requesting a photocopy using WorldLink Payment Services through CitiDirect Online Banking, see online help. For requesting a photocopy using WorldLink Payment Services via SWIFT, see the WorldLink via SWIFT User Guide.

Requesting a Photocopy from a Citibank Representative

Step Action

1 Contact Customer Service via telephone or mail to request a photocopy. (For the telephone number, see the WorldLink Payment Services Reference Booklet.)

2 Tell the Citibank Representative that you are requesting a photocopy of an On-Site Check or a Remote Check and provide the following information:

o Nine-digit check serial number (for a Remote Check, you may provide the 16-digit transaction reference number if you do not know the check number

o Amount and currency of the payment o Your client number o Issued or paid date of the check, if known

3 For requests of ten or fewer items, requests for photocopies are responded to within one business day after receiving your request. Requests for copies of over ten items are handled in a timely manner. Mail delivery time may vary depending on the destination.

If an item is available, the photocopy is mailed to you.

If an item is unavailable, you are notified that your request cannot be fulfilled immediately. The notice also includes a reason for the delay. For example, an item may not be immediately available because the check has not yet reached Citibank or because the original check is retained in the country of currency.

WorldLink Check Fraud Procedures

Overview—Forgeries

Following are the procedures followed when forgeries on WorldLink checks are identified.

Forgery Types:

WorldLink forgery claims are generally categorized under one of four headings:

¡ Counterfeit.

¡ Alteration.

¡ Forged/Unauthorized Endorsement.

¡ Paid After Death.


Counterfeit Checks

A counterfeit check refers to a check not authorized by a WorldLink customer that has been produced either by copier duplication or illegitimate/unauthorized printing operation. In the U.S., and most other countries, the paying bank is at risk for counterfeit items and generally has no recourse against the bank of deposit unless the item is discovered and returned within the guidelines as specified by the relevant in-country clearing authority for return items.

A counterfeit check can be identified as having one or more of the following characteristics:

¡ It is not printed on valid check stock.

¡ Security features are not evident.

¡ The client number is invalid.

¡ The check number is for a different client.

Alteration

Alteration refers to the material changing of the face or back of an item causing the payment instructions to no longer conform to the manner in which the maker or endorser intended. This includes the alteration of the issue date, issue amount, or payee on the face of the check. The paying bank is at risk for altered items and in many countries has no recourse against the bank of deposit unless the item is discovered and returned within the guidelines as specified by the relevant in-country clearing authority for return items. In the U.S., the paying bank has recourse against the bank of first deposit.

An altered check can be identified as having one or more of the following characteristics:

¡ It is printed on valid check stock.

¡ Security features are evident.

¡ The client number is valid.

¡ The check number is for the same client.

¡ Alterations have been made to amount and/or beneficiary details

Forged/Unauthorized Endorsement

Endorsement refers to the signed or deposit/stamped signatures on the back of the check. A forged or unauthorized endorsement is one that the payee claims was either not written or authorized by it.

WorldLink checks are generally non-transferable and for deposit only.

The paying bank is at risk for forged/unauthorized endorsement items and in many countries has no recourse against the bank of deposit unless the item is discovered and returned within the guidelines as specified by the relevant in-country clearing authority for return items. In the U.S., the paying bank has recourse against the bank of first deposit.

Paid After Death

Paid After Death refers to an item negotiated after the death of the payee. These are usually retirement benefits and neither the payee nor their beneficiaries are entitled to them. The maker has not been notified of the payee’s death. The usual retirement benefit clause states that the payee must be alive within the month the check is issued in order for the payee to be able to collect the benefits.

The paying bank is at risk for forged/unauthorized endorsement items and in many countries has no recourse against the bank of deposit unless the item is discovered and returned within the guidelines as specified by the relevant in-country clearing authority for return items. In the U.S., the paying bank has recourse against the bank of first deposit.


Fraud Detection and Return Process

All WorldLink checks presented for payment are automatically matched against the details provided by the client to WorldLink when the check was issued, and all checks that fail the automatic matching process are manually validated by WorldLink Operations staff.

Validation, both automatic and manual, must be performed within the return window determined by the in-country clearing authority for the currency of the check. This necessitates WorldLink operating on a 24 hour basis.

Checks that fail validation are returned unpaid. Where relevant, for example, with an altered item, a stop payment order is placed against the check to prevent its re-presentment.

An image of each non-matching check and the details of the attempted fraud are sent to the Citibank’s Corporate Security and Investigation Services unit, which monitors fraud trends and pursues further investigations with law enforcement agencies as warranted.

Check Recovery Process If a client becomes aware that a check has been encashed improperly, the client should immediately invoke the recovery process as follows:

Step Action

1 Call its WorldLink Customer Service Representative to validate the status of the check.

2 If paid, request that Customer Service advise it of the ultimate beneficiary of the check.

3 If encashed fraudulently, request that Customer Service open a recovery case.

The case is then handed off to WorldLink Operations, who will perform the following:

¡ WorldLink Operations opens a recovery case and orders a copy of the check from Citibank’s document storage facility or the bank of first deposit, depending on the currency of the check in question.

¡ WorldLink Operations sends a request to the WorldLink customer asking that it provide an “Entitlement Letter” together with either an Affidavit of Forgery (for counterfeit, altered and forged/unauthorized endorsement items) or a certified copy of Death Certificate (for paid after death items). Please note that the Customer Service Representative may ask for these items when the initial inquiry is raised. In a forgery case, Customer Service will provide the 2 forms for the client to fill out and forward to WorldLink Operations, WorldLink Recoveries Unit, Attn: , 4224 Ridge Lea Road, Amherst, NY 14226. As authentic signatures and notarizations are required, the customer will be required to send original documents by mail.

¡ The signed documentation is sent to the Currency Center in the country of the currency of the check.

¡ The Currency Center will attempt to recover the funds from the encashing bank.

¡ If successful, WorldLink Operations will then refund the recovered funds to the client.

¡ All cases are pursued on a “reasonable efforts” basis where up to 3 separate appeals are made to the encashing bank for an answer.

¡ On a monthly basis, Customer Service will inform the customer of the status of the investigation.

¡ If funds are recovered, they will be credited to the client’s WorldLink balance and the client will be notified of the status. Unsuccessful cases are also advised to the client.

¡ At any time, the client can inquire regarding the investigation by contacting Customer Service who liaises with WorldLink Cheque Operations in Buffalo, New York and with the appropriate Currency Center teams for an update.

WorldLink check recovery success rates are dictated by relevant in-country check clearing rules as dictated by local clearing authorities.


While efforts are made to resolve and recover funds, no standard resolution time frames can be provided and Citibank Europe plc cannot guarantee that funds will be recovered after a forgery.

WorldLink Cash Fraud Procedures In order to mitigate fraud risk, WorldLink has taken the following steps:

¡ The beneficiary must present sufficient identification.

¡ The beneficiary needs to identify the sender, location of origin and appropriate amount to be received.

¡ The beneficiary might also be requested to answer a test question.

¡ In some locations, the beneficiary will be required to provide Western Union’s MTCN (Money Transfer Control Number).

USD7,300 equivalent limit per payment curbs your potential exposure on any single payment. Additionally, local country laws may further limit payment amounts. Therefore, prior to initiating a Cash payment, please refer to the WorldLink Cash Country Service listing for guidelines.

Returned Funds Transfer Payments

WorldLink Payment Services supports funds transfer payments in over 130 currencies. When funds are returned, the WorldLink Funds Transfer Investigation Unit will determine why the funds transfer was returned and if possible, re-effect the payment instruction. If it is not possible to re-effect the payment, you will be notified via e-mail/fax/SWIFT/Telex and advised that the payment was returned and why.

Returned Cash Payments

If cash is not picked up by the beneficiary at a Western Union location within the set presentment period of 30 days, funds will be recredited to your account. You will have to re-effect payment instructions.

While reasonable efforts are made to return funds in a timely manner, no standard resolution time frames can be provided as Citibank Europe plc must comply with local country regulations in relation to the management of returns.

Funds Transfer and Cross Border ACH Recall Requests

A recall request is a request to recall a Funds Transfer or a Cross Border ACH payment from the receiving bank. WorldLink Payment Services will attempt, with reasonable effort, to recall a Funds Transfer or Cross Border ACH payment at your request.

Because time is critical in trying to recall a funds transfer or Cross Border ACH payment, you should initiate your recall request as soon as possible.

If you need to recall a Funds Transfer or Cross Border ACH payment, contact your service representative and provide the following information: The table below summarizes the main steps you follow to request a recall.

Cash Recalls

A recall request is a request to recall Cash from a Western Union location. WorldLink Payment Services will attempt, with reasonable effort, to recall a cash payment(s) from a Western Union location you request.

Because time is critical in trying to recall a Cash payment, you should initiate your recall request as soon as possible.

If you need to recall a Cash payment, contact your service representative and provide the following information: The table below summarizes the main steps you follow to request a recall.


Requesting a Recall

Step Action

1 Contact Customer Service via telephone to request the recall.

2 In your request, tell the Citibank Representative that you want a recall of a Funds Transfer or Cross Border ACH payment or Cash payment and provide as much of the following information as you can. By providing complete information, you reduce your risk of requesting a recall of the wrong payment.

o Payment transaction reference number o Funding bank, funding account number, and currency o Amount and currency of the transfer o Your instrument client number o Value on date (month, day, year) of the payment o Beneficiary’s name, beneficiary’s bank, and beneficiary’s account number o Reason for the recall

3 Your representative will discuss the recall process with you, including any limitations associated with the currency of the Funds Transfer or Cross Border ACH payment or Cash payment you want to recall. As a security measure, your organization’s primary contact may be called to confirm your telephoned recall request.

4 Prepare a written recall request. The request must be made on your organization’s stationery and must contain original signature(s) of the person(s) authorizing the recall request.

5 Fax the recall request to your representative.

6 WorldLink Payment Services initiates the recall.

7 Mail the signed original recall request to WorldLink Payment Services.

Providing Information to WorldLink Payment Services

It is your responsibility to provide the correct client number, transaction reference number, amount and currency, the correct value date, the correct beneficiary, beneficiary’s bank, and beneficiary’s account number when you request a recall of a Funds Transfer or Cross Border ACH payment.

Your Funds Transfer or Cross Border ACH payment cannot be recalled if the information in your request does not match the information in WorldLink’s records.

If Citibank Europe is unable to recall a Funds Transfer or Cross Border ACH payment or Cash payment due to invalid/incomplete information provided by your organization, your organization will be liable for the value of the Funds Transfer or Cross Border ACH payment you originally wanted recalled and also for any other resulting losses, costs, or expenses to Citibank, its parent, affiliates, intermediary banks, the beneficiary’s bank, or their affiliates or subsidiaries may suffer.

You must follow up all telephoned requests with a signed original letter authorizing the recall, which you should immediately fax to WorldLink Payment Services. You must then mail the signed original letter to WorldLink.


Response to Your Recall Request

Successful Recall Process

If the payment Funds Transfer or Cross Border ACH payment or Cash payment is successfully recalled, then standard procedures for refunding the funds to your account will be followed.

Unsuccessful Recall Process

If the Funds Transfer or Cross Border ACH payment or Cash payment is not successfully recalled, you can attempt to obtain a refund directly from the beneficiary. Citibank is not involved in these negotiations.


Glossary

This Glossary is a comprehensive glossary of abbreviations, acronyms, and terms for the WorldLink Payment Services system.

The first section of this Glossary lists abbreviations and acronyms and spells out the word or phrase each one represents.

The second section lists and defines terms related to the WorldLink Payment Services system, the payment types, or communication methods. Words or phrases normally represented as acronyms or abbreviations appear in the terms section in their spelled out form.

Abbreviations and Acronyms

ABA American Banking Association

ACH Automated Clearing House

BACS Bankers’ Automated Clearing Services Limited

BIC Bank Identifier Code

CHAPS Clearing House Automated Payment System

Citibank Europe Citibank Europe plc

Citibank Citibank Europe and/or any of its Affiliates

CPA Canadian Payment Association

CRS Citicorp Remittance Service

DES Data encryption standard

ECB European Central Bank

EFT Electronic Funds Transfer

EMU Economic and Monetary Union

EPOD Extended Payment Order Details

FDR Financial Difference Report

GCN Global Communications Network

GID Citibank Global Interface Device

GMT Greenwich Mean Time

ID Identification

ISO International Organization for Standardization

LAN Local Area Network

MICR Magnetic Ink Character Recognition

MTCN Money Transfer Control Number

NACHA National Automated Clearing House Association

NCD National Currency Denomination

NYC New York City

NYS New York State


OCR Optical Character Recognition

OLR Online Rates facility

PUA Paid Unadvised item

SWIFT Society for Worldwide Interbank Financial Telecommunication

Terms

For the meaning of abbreviations and acronyms used in these definitions, see the “Abbreviations and Acronyms” section.

ABA Number See Transit/Routing Number.

ACH Payment A series of instructions that starts with your payment instruction and ends with a payment to a beneficiary. The instructions and payments flow through an Automated Clearing House (ACH). ACH payments are usually used for repetitive low dollar volume transactions. Also called ACH direct deposit, ACH direct payment, ACH credit, or low-value clearing payment.

Acknowledgment Ticket

See Receipt Acknowledgment Ticket.

Agreement The contract or contracts that a client enters into with Citibank Europe.

Authentication A data security technique used to prevent the unintentional or unauthorized alteration of information.

Authorization (Agreement)

A process where the Receiver of an ACH transaction authorizes the Originator of that transaction to initiate debit or credit entries to affect their account. In turn, this agreement provides the RDFI the authorization to accept such entries.

Authorized Signator Person empowered to sign checks.

Authorized Signature

Signature of a person authorized to sign checks.

Autofunding Automatic debit.

Automated Clearing House (ACH)

A country’s automated clearing system. Any Federal Reserve Bank or other organization operating one or more facilities on behalf of an association as a clearinghouse for electronic entries. An automated Clearing House of a PDFI is one, which the PDFI transmits to or receives entries from pursuant to the authorization of the association.

Automated Payment System

A regional distribution and settlement network within a country for electronic payments (debits and credits) exchanged between an Originating financial institution and a receiving institution on behalf of the financial institutions’ account holders.

Automatic Debit A process by which your organization authorizes Citibank to electronically debit your organization’s designated account with a Citibank branch in order to pay for your WorldLink Payment Services transactions.

Available Funds Funds that are immediately available to the beneficiary for withdrawal or earning interest.

Back Value (a.k.a. late remittance)

A special fee assessed on a late remittance, calculated for each day (or portion of a day) that such payment remains unpaid following its due date.

BACS, Ltd. A United Kingdom automated clearing system. Formerly known as Bankers’ Automated Clearing Services Limited.

Bank Identifier Code (BIC)

A computer-readable address used by financial institutions and SWIFT to identify the partners in financial transactions.

Banking Day In reference to a PDFI, any day on which it is open to the public during any part of the day for carrying on substantially all its banking functions; in reference to an Automated Clearing House, any day on which the appropriate facility of the clearing house is being op erated.

Base Currency The currency or currencies in which Citibank has agreed to accept payment from the client for its disbursements. Same as funding currency.

Beneficiary The individual or organization to which a payment is made. Same as payee.

Best-Effort basis Commercially reasonable effort by Citibank to abort the processing of a payment, for example, by stopping an issued check, canceling a payment instruction, recalling a payment.

Branch An entity that is a Citibank, N.A. branch, subsidiary, or affiliate.


Business Day Day the applicable party is open for full business. Used to determine payment value date, funding date, and contract value date.

Charge our charges (a.k.a. lifting fees)

Miscellaneous charges assessed against the beneficiary of a funds transfer by receiving banks, intermediary banks, and/or the beneficiary’s bank. WorldLink Payment Services has no control over these charges.

Check Digit The final character of a transit/routing number that may be used to test the validity of a specific transit/routing number. Some financial institutions also calculate check digits for their account numbers.

Check A draft drawn on a bank to the order of a given person or organization or to the bearer. The WorldLink Payment Services system supports two types of checks: WorldLink On-Site Checks, which the client issues, and WorldLink Remote Checks, which Citibank or its branches or affiliates issue and release on the client’s behalf. On-Site checks and Remote Checks are drawn on Citibank-owned accounts and are meant for deposit, not for encashment.

Check Life Cycle The stages a check goes through from the time the stock is ordered until the check is processed as a paid item.

Check Number The reference number unique to each check. It appears in the upper right corner of the check form. Same as serial number.

Citibank Europe plc A wholly owned subsidiary of Citibank, N.A. and the legal vehicle through which WorldLink is offered to clients.

Citibank Representative

One or more Citigroup Global Transaction Services personnel who provide a variety of services to clients.

Citigroup The parent company of Citibank Europe.

CitiDirect Online Banking

A browser-based, Internet-enabled platform, using the latest in client/server technology to deliver a variety of banking services, including the WorldLink Payment Services.

CitiPreferred Citibank’s proprietary 80-byte flat file format.

Clearing Process by which financial transactions pass through a banking system and funds become available to the designated beneficiary.

Clearing House Automated Payment System (CHAPS)

A United Kingdom system for funds transfer.

Clearing House Interbank Payment System (CHIPS)

A large-dollar funds transfer system operated by the New York City Clearing House, used primarily for international payments.

Clearinghouse A voluntary association of depository institutions that facilitates the clearing of checks or electronic items through the direct exchange of funds between members.

Client The legal entity that has agreed to issue payments via WorldLink Payment Services.

Client Number The identification number that identifies your organization for WorldLink Payment Services.

Company An individual, sole proprietorship, partnership, limited liability corporation, or corporation engaged in a commercial enterprise or venture.

Consolidated Remittance

A single remittance in the client’s funding currency to pay for transactions in several currencies.

Consumer Account A deposit account held by a participating depository financial institution and established by a human being primarily for personal, family, or household purposes and not for commercial purposes.

Contract Number See foreign currency contract number.

Contract Rate See foreign currency contract rate.

Correspondent Bank

A bank that accepts deposits from another bank and provides services to or on behalf of that other bank. Banks usually establish a correspondent banking relationship on a reciprocal basis, with the banks maintaining local currency accounts with each other.

Country Code A unique two -character code for each country, set by the ISO.

Covering Funds Funds the client remits to Citibank for the client’s WorldLink Payment Services transactions.

Cross Border Between two countries.

Cross Border Payment

A payment from an organization (the originating organization) in one country to an organization (the receiving institution or organization) in a different country.


Crossing Marking the face of a check or draft, usually by placing two parallel lines on it, to indicate that it is for deposit only.

Currency Code Three-character code that identifies a currency. It consists of the two -character ISO country code plus a one -character code for the monetary unit. These conform to SWIFT and ISO currency code standards. For a list of the currency codes, see the WorldLink Payment Services Reference Booklet.

Currency of Issuance

Currency in which a transaction is denominated.

Customer Citibank client.

Daily Rate Currency conversion rates that are guaranteed throughout the working day.

Data Encryption Standard (DES)

A technology which uses a mathematical formula to generate a different password each time it is invoked.

Data Transmission See file transmission.

Debit Account Funding account.

Debit Entry An entry to an account to draw fund s from the receiver of the transaction in favor of the originator of the transaction.

Delivery Date Date the funds specified in a foreign currency contract are exchanged.

Depository Financial Institution

Financial institution that accepts deposits and makes loans.

Direct Deposit An ACH payment. A deposit made to a client’s account at a depository institution through the ACH. This typically refers to payroll deposits, social security payments, and pension payments.

Direct Payment An ACH payment.

Disbursement General term for a payment initiated by a client.

Draft An unconditional written order to pay a specified amount of money on demand to a beneficiary.

Drawee See payable-at bank.

Drawer The signer of a draft. The organization issuing the check.

Economic and Monetary Union (EMU)

The European Union (EU) countries that will participate in a European monetary system, determine monetary policy, and issue a new currency—the euro. The founder member countries are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.

Edit The process of checking a data file to ensure the information is correctly formatted and able to be processed by the target payment system.

Effected Payment The act of releasing a disbursement for payment to the named beneficiary. A funds transfer is effected when WorldLink Payment Services sends it to the first receiving bank. An ACH payment is effected when WorldLink sends it to the Automated Clearing House. A Remote Check is effected when WorldLink puts it into circulation. See also issued check.

Electronic File Delivery

See file transmission method.

Electronic Funds Transfer

A funds transfer.

Encashment The immediate receipt of funds upon a beneficiary’s presentation of a check for payment. Derives from encash meaning to cash.

Encoding Imprinting electronically readable characters (such as MICR in the U.S., CMC7 in Spain, and OCRB in Germany) on checks, deposit tickets, and other documents to be processed by a sorter/reader. En coding permits automation of item processing.

Encryption A data security technique used to protect information from unauthorized inspection or alteration. Information is encoded so that data appears as a meaningless string of letters and symbols during transmission. Upon receipt, the information is decoded.

Endorsement The signature or imprint of endorser on the back of a check. Transferring or passing title to a check from the endorser to another party (the endorsee) requires the endorsement of the person or entity to whom the check is payable.

Entry An order or request either for the deposit of money to the account of a receiver, or for the payment of money from the account of a receiver.


Equivalent Amount The amount of a payment expressed in the funding currency rather than in the payment currency.

Euroland Name given to the group of countries that are participating in the Economic and Monetary Union (EMU).

European Central Bank (ECB)

The bank that controls monetary policy in the EMU block.

Exception Item An entry that requires special attention or processing. Examples of exception items include return entries, notifications of change, and dishonored return entries.

Federal Reserve Banks

Banks that were created by and that operate under the U.S. Fed eral Reserve System. They are used, among other things, for the clearing of checks by member banks.

Federal Reserve System

The central banking system and local clearing system of the United States.

Fed Wire Federal funds wire. Electronic transfer of funds conducted through the U.S. Federal Reserve Banks’ funds transfer system.

File Transmission A means of payment delivery whereby the client sends a payment instruction file to WorldLink Payment Services by direct transmission from the client’s computer sy stem. Also called electronic file delivery or data transmission.

Financial Difference Report (FDR)

Report sent by WorldLink Payment Services to a client when a discrepancy occurs between the amounts that WorldLink determines the client should have remitte d to Citibank and the amount the client actually remitted.

Financial Institution A bank, broker, or dealer in securities, currency dealer or exchanger, check casher, telegraph company, money-transmitting business that issues, sells, or redeems money order s or travelers checks, and certain casinos.

Force Majeure Event

Any event due to any cause beyond the reasonable control of the client or Citibank and includes, but is not limited to, any event due to any natural, technological, political or similar cause.

Forward Currency Contract

A foreign currency contract with an agreed-upon delivery date more than six calendar days from the trade date.

Funding The act of paying Citibank for WorldLink Payment Services transactions. See also remittance.

Funding Account The qualified Citibank or other bank demand deposit account from which the client will pay for WorldLink Payment Services transactions. The funding account must be acceptable to Citibank in terms of currency and location.

Funding Amount The total value of each currency that is owed to WorldLink Payment Services for your WorldLink payments.

Funding Bank The bank at which the funding account is held.

Funding Currency The currency or currencies in which Citibank has agreed to accept payment from the clie nt for its disbursements. Same as base currency.

Funding Location Institution to which the client’s funding is directed. Same as remittance location.

Funds Availability The time at which the funds resulting from a credit transfer are made available to the beneficiary for withdrawal or earning interest.

Funds Transfer Starting with the Originator’s payment instructions, a series of transactions that are effected in order to make payment to a beneficiary. Also called electronic funds transfer, EFT, wire.

Foreign Currency Exchange Rate

The number of units of a currency equivalent to one unit of another currency.

Foreign Currency Contract

An agreement to buy and sell currency at an agreed-upon rate on an agreed-upon date.

Foreign Currency Contract Number

Acknowledgment number assigned to a specific foreign currency exchange rate quotation, representing the authorization given to the client to use the agreed-upon rate when remitting covering funds for particular transactions of a specified amount.

Foreign Currency Contract Rate

An agreed-upon foreign currency exchange rate at which the client will remit payment for or adjust particular transactions of a specified amount.

Holder Person or entity with physical possession (directly or through an agent) of a draft.

Holder in Due Course

The person or entity who is in possession of an instrument drawn, issued, or endorsed to such person or entity or to the order of such person or entity (the ’holder’), provided that such holder takes the instrument, a) for value, b) in good faith, and, c) without having noticed that it is overdue or has been dishonored or of any defense against or claim to it on the part of any person.

Identifier Number Alternative term for test word arrangement code.


Indorsement See endorsement.

Instrument Same as payment instrument.

International ACH Payment

ACH payment in a currency other than U.S. dollar.

International Organization for Standardization (ISO)

A worldwide federation of national standards bodies, headquartered in Geneva, Switzerland, organized to promote the development of standardization and related activities in the world with a view to facilitating the international exchange of goods and services, and to developing cooperation in the spheres of intellectual, scientific, tech nological, and economic activity. Note: ISO is not an acronym but rather a word derived from the Greek isos, meaning ’equal.’

ISO Code See currency code, country code.

Issue Currency The currency in which a payment is made to a beneficiary. Also called payment currency. Contrast with funding currency.

Issued Check The check has been put into circulation.

Issuing Location Number

Number identifying your issuing location. If your organization has only one issuing location, the location number is 001.

Item An electronic record representing the movement of funds. Same as entry.

Late Remittance A special fee Citibank assesses on a late remittance, calculated for each day (or portion of a day) that such payment remains unpaid following its due date.

Library A collection of stored information for such items as currencies, funding banks, beneficiaries, mailing details, and preformats.

Lifting Charges Miscellaneous charges assessed against the beneficiary of a funds transfer by receiving banks, intermediary ban ks, and/or the beneficiary’s bank. Citibank has no control over these charges.

Local Clearing The clearing system of the country of a given currency. See also clearing.

Local Currency The currency in general use in the country referred to, for example, U.S. dollar in the United States. For member countries of the EMU (European Economic and Monetary Union) the local currency the euro.

Low-Value Clearing Payment

An ACH payment.

Magnetic Ink Character Recognition (MICR)

The encoded character set used in the United States and certain other countries. See also encoding.

Manual Funding A client-initiated remittance. Contrast with automatic debit, autofunding.

Message, Electronic The text of an electronic communication—for example, a funds transfer instruction.

Message, Error A notice indicating that there is a problem in an entry. Often called an error message.

MICR-Band The portion of a check or form that contains the MICR encoding.

Money Transfer Control Number

A Western Union identification number which a beneficiary may be asked to provide when picking up cash at a Western Union location.

National Automated Clearing House Association (NACHA)

The American organization that establishes the standards, rules, and procedures that enable financial institutions to exchange ACH payments on a national basis.

Non-Business Day Day of the week or holiday when banks are not open.

Notice to Receive An information message notifying a Citibank branch or affiliate that a funds transfer is being sent to an account at the branch.

Online Rates Facility (OLR)

The automated system for buying and selling foreign currency online through CitiDirect Online banking and other WorldLink Payment Services legacy software applications.

On-Site Check Check issued by the client on Wo rldLink Payment Services-provided check stock and drawn on a Citibank-designated payable -at bank.

Organization A corporation, partnership, association, or other entity.


Paid Unadvised (PUA) Item

An on-site check processed by the payable-at bank before Wo rldLink Payment Services has received the client’s issuance information.

Password A means of accessing software and/or certain software functions. The password may be one created by the operator or may be one dynamically generated through smart card technology.

Payable-at Bank The Citibank branch, affiliate, or correspondent entity on which an on-site check or Remote Check is drawn.

Payee The person or organization to whom a check is payable. The beneficiary.

Payer See payable-at bank.

Payment A payment of funds to a beneficiary. Also called disbursement.

Payment Currency The currency in which a payment is made. Also called issue currency. Contrast with funding currency.

Payment Initiation Cycle

The activities involved in preparing a payment for a beneficiary, including creation of the payment instruction, approval of the payment instruction, check printing for on-site checks, and transmitting the payment instructions and information for processing.

Payment Instruction Complete information needed to prepare or effect a payment for a beneficiary.

Payment Instrument A draft. An on -site check or Remote Check.

Posting The process of recording debits and credits to individual account balances.

Processing Center The Citibank facility that receives, reconciles, verifies, and stores drafts and other documents.

Processing Date Date on which WorldLink Payment Services effects the requested payments.

Recall of a Transfer A request to a receiving bank to return the funds from a previously effected funds transf er.

Receipt Acknowledgement Ticket

The form that accompanies on-site check stock shipped to the client. The client verifies the contents of the shipment, then signs the form and returns it to WorldLink Payment Services.

Reconcilement The process whereby WorldLink Payment Services matches payment issuance information to paid item information and matches a client’s funding information to the actual funds it receives.

Reject An ACH payment that cannot be processed due to failure to pass system processing ed its.

Release Date The date that Remote Check, ACH payment, and funds transfer payment instructions must be transmitted to enable the payment to be processed for the requested value date.

Remit Due Date The date by which available funds for an organization’s WorldLink Payment Services transactions must be received .

Remittance The total daily funding amount due to Citibank for a client’s WorldLink Payment Services transactions.

Remittance Location

Institution to which the client’s funding is directed. Also called funding location.

Remote Check A check issued by WorldLink Payment Services at the client’s direction.

Return A funds transfer or Cross Border ACH payment that cannot be processed by the beneficiary bank.

SWIFT code See currency code.

Serial Number A check number.

Service Bureau A data processing service provider used by a company or depository financial institution for various accounting and payment system related functions.

Settlement 1) Resolution of a financial obligation. 2) The act of providing the funding for a Foreign Currency contract.

Shared Service Center

A third party agent or internal entity authorized to act on behalf of another entity in financial transactions.

Smart Card A card-sized device that contains logic and storage elements that is used to dynamically generate a password for accessing a computer system.

Society for Worldwide

A financial message transaction network based in Brussels. SWIFT is often used to effect funds transfers. For financial institutions, WorldLink Payment Services can be initiated via SWIFT messages.


Interbank Financial Telecommunication (SWIFT)

Spot Contract A foreign currency contract for the delivery of foreign currency within six calendar days of the trade date.

Status Inquiry A request by a client to determine the status of a payment (for example, to determine whether a check has been paid or whether a funds transfer has been effected).

Stop Payment Request

A client’s request to not pay a check that the organization has issued.

Stop Reference Number

A number assigned to a stopped check. Used as a control to indicate that the stop payment was placed.

Tenor The period of time from the trade date of a foreign currency contract to the delivery (value date) of the foreign funds.

Tested Telex A telex message format that ensures the telex’s receipt, authenticity, and integrity.

Trade Date Date a contract was obtained.

Transaction The issuance of an On-Site Check, the preparation of a Remote Check, Funds Transfer, or Cross Border ACH payment instruction, an adjustment, the purchase or sale of foreign currency, or the settlement of a foreign currency contract.

Transit/Routing Number

An ID that identifies a depository financial institution for routing payments to that institution. A depository financi al institution may have multiple routing numbers, such as a SWIFT/BIC, an ABA number, a U.K. Sort Code, a German Bankleitzahl number, a CHIPS Participant Code.

Travel Rule The Travel Rule, issued by the U.S. Treasury Department to deter money laundering, requires that key information ’travel’ in the transmittal order for a funds transfer of USD 3,000 or more, or its foreign currency equivalent. In this way, law enforcement officials have immediate access to relevant data, such as the Originator (or ordering party), the beneficiary (recipient), and their financial institutions involved in the transaction. The Travel Rule applies to financial institutions located in the United States, its territories, or possessions. Consult with your legal counsel to determine whether the Travel Rule applies to your organization. The following funds transfers are exempt from the Travel Rule: 1) transfers that are less than USD 3,000 equivalent. 2) transfers where the Originator and the beneficiary are either a U.S. bank or its wholly-owned domestic subsidiary; or a U.S.

broker or dealer in securities or its wholly-owned domestic subsidiary; the U.S.; a state or local government; or a federal, state, or local government agency or instrumentality.

3) transfers where both the Originator and the beneficiary are the same person and the Originator’s financial institution and the beneficiary’s financial institution are the same U.S. domestic bank or broker or dealer in securities.

Truncation Situation where the original check is kept , filled, and/or microfilmed in the country of currency and not returned to WorldLink.

Unit A multiplier that may be used to facilitate the quotation of rates. The standard multiplier is 1. Some currencies, like the Italian lira and Japanese yen, are often quoted with a multiplier of 100.

Value Date—Forward Contract

Agreed upon delivery date of the foreign currency.

Value Date—Payment

For an on-site check, the date that the client printed the check. For a Remote Check, the date that the check is printed . For a funds transfer, the date that payment is placed into local clearing for the beneficiary to be paid. For ACH payments, the date that the payment is credited to the beneficiary.

Value Date—Spot Contract

Two days after the trade date, adjusted for non-business days.

Void Invalidate an on-site check.

Warehousing The practice of holding payments for processing until their release date is reached.

Wire, Wire Transfer See funds transfer, Fed Wire.

Work of Date The date when the client issued a check or when the client transmitted the instructions for a Remote Check, Cross Border ACH payment, or Funds Transfer. An abbreviated way of saying ’the work as of this date.’

WorldLink On-Site Check

Check issued by the client on WorldLink Payment Services check stock and drawn on a WorldLink payable-at bank. See also check, on-site check.

WorldLink Funds In accordance with the client’s payment instructions, the method a payment order is electronically transmitted to a receiving


Transfer bank. The receiving bank may be an intermediary bank or the beneficiary’s bank. See also funds transfer.

WorldLink Remote Check

A check issued in accordance with the client’s payment instructions.

WorldLink Foreign Currency Center

The WorldLink Foreign Currency conversion facil ity. Offices are located in Buffalo, NY, Dublin, Ireland, and Singapore, Singapore.

WorldLink Currency Representative

One or more WorldLink personnel who provide foreign currency rate quotations to WorldLink Payment Services clients.

WorldLink Payment Services

Name for the processing systems and services associated with cross -border payments via WorldLink On-Site Check, WorldLink Remote Check, WorldLink Funds Transfers, and WorldLink Cross Border ACH.

You, Your, Yours, Your Institution, Your Organization

The client/customer.

Same Day/Next Day Currencies

Currency New York London Singapore Japan

EUR 09:00 14:00 21:00 22:00

NZD – – 11:30 12:30

SGD – 08:00 15:00 16:00

HKD – 08:30 15:30 16:30

JPY – – 09:00 10:00

AUD – – 12:30 13:30

ZAR – 12:00 19:00 20:00

GBP 08:00 13:00 20:00 21:00

CHF – 09:00 16:00 17:00

CAD 12:10 19:00 23:45 23:45

USD (to Europe) 10:00 14:00 21:00 22:00

USD (to Intra-Asia) – – 15:00 16:00

USD (to U.S.) 14:00 19:00 23:45 23:45


WorldLink® Payment Services is owned and operated by Citibank Europe plc, an Ireland-based subsidiary of Citigroup Inc.

© 2012 Citibank, N.A. All rights reserved. Citi and Arc Design is a registered service mark of Citigroup Inc.

Western Union is a registered service mark of Western Union Holdings, Inc and is used with permission.

Documents

WorldLink Management Guide Janaury 2007 · PDF fileBy this Management Guide, neither Citibank Europe ... operational, credit, marketing and general business practices, as well as information