However, it was observed by the SBP 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.
In addition, the banks are also required to keep SBP 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.
Therefore, in order to ensure smooth settlement process, the State Bank has advised banks to ensure that all SWIFT messages, of a given transaction date, are invariably transmitted to SBP 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," the circular said.
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.
SBP has also asked banks to submit an updated list of authorized signatories with specimen signatures and contact details, on quarterly basis. Such updated list for quarter ending Jul-Sep19 may be submitted by November 28, 2019.
Banks can submit the future reports may be within 10 working days from end of a calendar quarter. In case of any future changes of authorized person(s) during a quarter, the SBP will be immediately notified of such changes but not later than 3 working days.