Description:

Can be used to receive funds from a 3rd party.

Appears in:

• Acquisition Leveraged Finance
• Brand Financing
• Certificate of Deposit (Broker Acting on Behalf of Client)
• Certificate of Deposit (Direct Interaction with Clients)
• Constant Proportion Portfolio Insurance (CPPI)
• Credit Default Swap (CDS)
• Credit Linked Deposit
• Deposit
• Deposit (Direct with Client)
• Deposit (via Broker)
• Discounting of Receivables With or Without Recourse
• Documentary Collections (Export)
• Documentary Collections (Import)
• Dual Currency Deposit (DCD)
• Equity Linked Note
• Exchange Traded Funds (ETFs) (Counterparty to Counterparty)
• Exchange Traded Funds (ETFs) (Exchange Traded)
• FX Prime Brokerage (Continuous Linked Settlement)
• FX Prime Brokerage (Non-Continuous Linked Settlement)
• FX Spot
• Hedge Fund Derivatives
• International Services
• Inventory Financing
• Letter of Credit and Guarantee Syndication
• Receivable Purchase Facility
• Structured Deposit

Addressed by:

• Approval to Receive 3rd Party Payment: Compliance approval is required to receive 3rd party payment.
• Bank to Bank Transfers (Low Risk Jurisdictions): Payment can only be made via bank-to-bank transfers from countries with strong AML controls (typically low-risk jurisdictions).
• Book Entry or DVP: The product is not easily transferable, and payment flows are restricted due to book entry (recorded electronically) and Delivery vs. Payment (DVP), a settlement system that stipulates cash payment must be made prior to or simultaneously with the delivery of the security to a specified party.
• Know Your Business (KYB): Includes taking steps to gain an understanding of a customer's business activities, including the nature of the business to be taken with a bank and the anticipated volume and value of the business.
• Originator and Beneficiary Information: Require that originator and beneficiary information be included in the payment.
• Payment Terms Defined in Agreement or Contract: A product or service requires entering into a legally binding agreement or contract between specified parties that outlines the drawdown and repayment terms.
• Restricted to Regulated Firm: Restrictions on the types of customers (regulated Financial Institutions) to whom the product can be offered.
• Traded on Regulated Exchange: Traded on a regulated exchange in a low-risk jurisdiction.
• Transactional Due Diligence (TDD): Conducts a detailed examination of specific transactions identified as being higher risk.