Circulars/Notifications - Treasury Operations Department  

 TOD Circular No. 01 of 2019
November 15, 2019

The Presidents/ Chief Executives
All Banks


Dear All,

FX Interbank Confirmations

Please refer to the instructions contained in this department’s Circular No. 01 of 2012 dated 09 Oct-2012 on captioned subject. Under existing instructions, the banks provide to this department FX/SWAP trade confirmations duly signed by their authorized signatories, as per standardized hard copy format (hard copy) on the transaction date. They are also required to provide SWIFT MT-300 confirmation message (SWIFT message) in addition to said hard copies.
  1. It has, however, been observed that some of the banks occasionally fail to send said hard copies/ SWIFT messages on the transaction date. Such lapses pose serious difficulties in timely verification of trade terms and other trade related details thereby unnecessarily exposing the banks to critical settlement risk.

  2. The banks are also required to keep this department updated on any changes in their list of authorized signatories along with contact details, however, intermittent non-compliance to these instructions has also been noted.

  3. In order to ensure smooth settlement process, the banks are advised to:

    1. Ensure that all SWIFT messages, of a given transaction date, are invariably transmitted to this department with zero tolerance for any leftover SWIFT message. This means that transmission date of a SWIFT message should not be later than the trade commitment date (transaction date) of related FX/SWAP trade. Further, in order to bring efficiency in the process, transmission of hard copy may be discontinued from now onwards. However, submission of hard copy would be mandatory in situations where a bank is unable to transmit SWIFT message due to any reason of whatsoever in nature.

    2. Submit to this department an updated list of authorized signatories with specimen signatures and contact details, on quarterly basis (format attached). Such updated list for quarter ending Jul-Sep19 may be submitted by November 28, 2019. The future reports may be submitted within 10 working days from end of a calendar quarter. In case of any future changes of authorized person(s) during a quarter, this department will be immediately notified of such changes but not later than 3 working days.

In case of any queries, please note our phone number 021-3245 5861, 021-3245 5854 and our group email ID <[email protected]>.

Annexure - Format for submission of List of Authorized Signatories

Yours sincerely,

(Syed Ali Raza)
Additional Director

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