Sanctions Screening
Scheme actors and responsibilities
The Scheme will define the responsibilities of the following actors (who are described in detail in Participants in the Nexus scheme):
  • The Instant Payment Scheme Operator (IPSO): under the intended Nexus Scheme the IPSO will be local Nexus Scheme delegate, ie it will manage adherence of the local IPS participants to the Nexus Scheme
  • IPS Members (Banks/PSPs): IPS members are any IPS participant that is allowed to initiate or receive IPS payments from the local IPS
  • Source Liquidity Provider: a party that is a direct participant in the local source IPS and is responsible receiving liquidity in the local currency on behalf of the FX Provider
  • Destination Liquidity Provider: a party that is a direct participant in the local Destination IPS and is responsible for providing liquidity in the local currency on behalf of the FX Provider
  • FX Provider: a party that provides FX conversion rates and executes cross currency conversion using Liquidity Providers in Source and Destination country.
There are other supporting actors in the Nexus arrangement:
  • Nexus Scheme Manager: The governance entity which oversees the Nexus Scheme.
  • Certificate authority: an entity managed by the Nexus Scheme that manages the issuing and management of certificates to Scheme participants.
  • Nexus Gateway Software Provider: an entity that the Nexus Scheme has contracted and certified to provide and update the Nexus Gateway software as well as its updates.
Responsible Party
Tasks
Necessity
IPS
Contribute to Nexus Scheme governance
  • Understand views and needs of local IPS members with respect to Nexus payments
  • Engage in Nexus Scheme governance discussions on behalf of their country
Essential
IPS
Manage adherence and onboarding of local IPS members to the Nexus Scheme
  • Verifying that local IPS members meet compliance requirements for cross-border payments
  • Verify that local IPS members meet adherence requirements for Nexus Scheme
Essential
IPS
Define and update the SLD
  • Complete all fields of SLD (see template in Service Level Descriptions)
  • Provide SLD to local Nexus Gateway
  • Update when IPS or IPS member functionality is updated
Essential
IPS
Onboarding of local IPS members
  • Request the Certificate Authority to issue credentials to allow IPS members to connect to the local Nexus Gateway
  • Manage onboarding and testing
  • Update the reachability map in the SLD
Essential
IPS
Reachability map
  • Provide Nexus with a list of all banks/PSPs that are enabled to receive payments via Nexus (included in the SLD)
  • Update this whenever IPS members join or leave Nexus
Essential
IPS
Monitor day-to-day network performance
  • Ensure the local leg of Nexus payments are operating as expected
  • Monitor performance of the local Nexus Gateway and its communication with other Gateways
  • Manage any operational incidents (in collaboration with other IPSOs)
Essential
IPS (or IPS Members in some configurations)
Alias mapping
  • Map an alias to a specific account number
Essential where aliases are used
IPS (or IPS Members in some configurations)
Availability check
  • Check if Destination Bank has scheduled/unscheduled downtime
Optional (Nice to have)
IPS Members
Account validation
  • Confirm (in advance) whether an account is active or closed/frozen
Optional
IPS Members
Confirmation of Payee
  • Provide some form of Confirmation of Payee
  • Return name, nickname or match status depending on model in use
Strongly recommended
Source Bank (ie an IPS Member with Send-Receive status)
Enable Nexus payment initiation
  • Update consumer-facing app and site to enable them to initiate Nexus payments and receive notifications of payments received
Essential
Destination Bank (an IPS member with Receive-Only or Send-Receive status)
Credit the Recipient as soon as a Nexus payment is complete
  • Update the recipient’s bank account balance immediately when the payment is received
  • Optionally, also alert the Recipient through their banking app when payments are received
Essential
Source Bank
Destination Bank
Liquidity Providers
Sanctions screening and AML/CFT compliance
  • Screen Sender and/or Recipient against sanctions list
  • Return approval or reject status after screening
  • Request further information automatically to eliminate false positives
  • Automatically provide further information on its own customer when asked by the other bank
Essential that screening is done before Recipient is credited.
Strongly recommended that screening is done in advance (before Source Bank sends final payment instruction).
Liquidity Provider (Source and Destination)
Approve Nexus as an Instructing Party
  • Give authorization for Nexus to act as an instructing party, to initiate and receive payments on the LP’s behalf
FX Providers
Issue FX quotes:
  • Commit to provide quotes to a corridor for a specific period of time, with a notice period if it wishes to withdraw from providing FX to that corridor
  • Provide quotes on a 24/7 basis for the corridors it has committed to
  • Send quotes to local Nexus Gateway
  • Honour those quotes for at least five minutes after they are last shown to potential Senders
Essential
FX Providers
  • Allow payment reversals Allow payment reversals at the same rate used in the original payment (in case of disputes or payments made in error)
Essential
Source Gateway
Compile FX quotes
  • Accept and store quotes from FX Providers. Only quotes for the Source Currency need to be stored (ie for payments from the “home” country to other countries).
Essential
Source Gateway
Provide FX quotes to banks/PSPs
  • Provide FX quotes to banks/PSPs for specific payments
  • Save payment-specific quote when SELF mode is used
Essential
Source Gateway
Share SLD for Destination IPS
  • On per-payment basis, provide sending bank/PSP with the SLD of the Destination IPS so it can set up the payment instruction correctly
Essential
Nexus Gateway Software Provider
Build and update the Nexus Gateway software
  • Designing, coding, testing and releasing the Nexus Gateway component, including support and maintenance
  • Provide manuals, training materials and implementation support
  • (The Nexus Scheme will determine requirements and schedule for each release)
Essential
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