Programme Management Office

(1)

SEPA:

Programme Management Office

Axelle Waterkeyn - National Bank of Belgium 14-11-2013

Agenda

► SCT et SDD en Belgique et en Europe

► End of legacy CT et DOM80

► SCT

► SDD

S

d d

► Standards

► Questions

SCT & SDD migration - State of play

(2)

End date regulation

3

End date regulation : 01/02/2014

(3)

SEPA - End date regulation

Schemes  End of domestic CT and DD schemes in euro countries as _{from 01/02/2014}

M d t f ISO XML 20022 f tt b k f

 Mandatory use of ISO XML 20022 format to banks as from 01/02/2014

 IBAN mandatoryas from 01/02/2014

Formats y

 BIC no longer requiredfor domestic transactions as from 01/02/2014

 BIC no longer required for cross-border transactions as from 01/02/2016

N t ti f di t d bit

Consumer protection

 New protection measures for direct debits consumers (white/black list, limit amount, etc.) as from 01/02/2014

5

Rapports BCE

► In many cases, SMEs seem

to lack adequate support

from software providers.

Solutions from large

software providers seem to

be too expensive and/or

ill-suited to SMEs and many

of the smaller software

providers do not seem to

have SEPA-compliant

solutions.

(4)

Migration

7

Migration SCT - En Europe et en

Belgique

100% 65,16% 72,64% 73,92% 70% 80% 90% 44,71% 47,66% 58,03% 61,59% 40 25% 49 98%52,78% 56,26% 50% 60% 70% 16,07% 33,33% 16 86% 20,50% 21,07% 23,71%27,16% 29,57% 30,30% 34,86% 40,25% 46,95% 49,98% 20% 30% 40% 1,80% 13,90% 16,86% 0% 10% 20%

(5)

Migration SDD - En Europe et en

Belgique

90 00% 100,00% 70,00% 80,00% 90,00% 50,00% 60,00% 19,48% _16,35% 15 30% 18,93% 21,64%24,41% 25,40% 20 00% 30,00% 40,00% 1,83% 3,30% 12,92% 11,02% 13,93% 11,10% 15,30% 1,94% 2,51% 4,79% 5,81% 6,84% 0,00% 10,00% 20,00% % Belgium % Europe

9

Migration SDD - Créanciers

100,00% 90%

100%

Mandats de domiciliation belges

60% 70% 80% ts 30% 40% 50% % Manda t 10% 20% 30% 0% # Créanciers

(6)

Communication

11

Actions de communication

(octobre 2013 - février 2014)



(octobre 2013 - février 2014)



01/10/2013 Réunion d'information Entreprises (Febelfin-Isabel-BNB)



17/10/2013 Dépliant et Affiche SEPA (SPF Finances)



24/10/2013 Conférence de presse

(SPF Finances-SPF Economie-Febelfin-BNB)



14/11/2013 Réunion d'information ERP (Febelfin-Agoria-BNB)



07/11/2013 Réunion d'information banques (Febelfin)



Décembre Sessions d'info ad hoc



Janvier Sessions d'info ad hoc



Janvier Sessions d info ad hoc

(7)

Conclusions

● SEPA entame sa dernière ligne droite

● Chacun doit avoir migré, au plus tard, le 01/02/2014

● Les banques doivent accompagner leurs clients et les encourager à entamer leurs développements

● L'accent doit être porté sur les petites et moyennes entreprises

13

● L accent doit être porté sur les petites et moyennes entreprises

Questions

(8)

SEPA Direct Debit

End of Legacy

Patrick Devisscher – Febelfin

SEPA Direct Debit - End of Legacy 14 11 2013

Decision Febelfin & CEC Boards (18 & 25/10/2013) (1/2)

• The reported migration levels are sufficient to maintain the “end date” of 01/02/2014.

The migration time lines related to this date stays confirmed (last date for sending to banks, last date of clearing, last date of settlement).

banks, last date of clearing, last date of settlement).

• Any deviation of or problem with the migration rules as of 01/02/2014 by a participant, y p g / / y p p , will be subject of the Operationeel Crisis Committee (CEC/STET) in which all CEC

participants are represented.

• Despite of the reported migration levels, the banks express their great concern about the “actual migration status” and the ambitious plans/communication of the creditors and the ERP providers to reach the deadline in time.

(9)

Decision Febelfin & CEC Boards (18 & 25/10/2013) (2/2)

Creditors and ERP Providers have to be aware of the importance of good preparation d l i f li i th i ti i ti

and planning for realising the migration in time.

i l d d ll b k k h i d i li i

It is strongly recommended to all banks to keep their domestic payment applications open in a passive way (only receiving – no sending) after 01/02/2014.

CEC/STET will keep those applications open (conform to the regulation) to guarantee the final handling of the legacy transactions.

The migration progress is monitored very closely. A new evaluation is plannedg p g y y p

beginning of December 2013, based on the migration status end of November 2013.

SEPA Direct Debit - End of Legacy 14 11 2013 3

SEPA

End of Legacy Credit Transfer

(10)

Commerciële end date: binnenlandse producten

Overzicht:

Binnenlands product Datum

Communicatie over afschaf binnenlandse producten Zo snel mogelijk Eventuele aanpassing algemene voorwaarden, indien expliciet

verwezen naar domestieke producten

Ten laatste vrijdag 29/11/2013

Laatste uitvoeringsdatum binnenlandse overschrijvingen met memodatum (tenzij dringende verwerking)

30/01/2014 Laatste uitvoeringsdatum binnenlandse periodieke opdrachten 30/01/2014g p p (tenzij dringende verwerking)

Versturen laatste loten met binnenlandse overschrijvingen naar STET

31/01/2014 – 16u Terugstorting (in binnenlands formaat) van binnenlandse

overschrijvingen die uitgewisseld zijn voor 31/01/2014 – 16u

05/02/2014 – 16u

Annulaties binnenlandse overschrijvingen Binnen redelijke termijn

SEPA Direct Debit - End of Legacy 14 11 2013 5 j g

Bij negatief antwoord MT195

Bij positief antwoord SCT vanaf 01/02/2014

j j

Commerciële end date: clearing loten STET

• AP1 (001): Niet Dringende Overschrijvingen

Aardcodes Gerelateerd product Alternatief?

0 – 1 – 3 – 5 – 6 – 8 – 9 Overschrijvingenj g SCT / CT closed on 26/02/2014 Z – T (– R) Swiftlikes T: MT103 via EBA

Z: MT103 & MT202

 Close “sending” 26/06/2014g  Close “receiving” on

30/06/2014

X – Y – P – C Kaarttransacties -> Afzonderlijke toepassingenj g AC1 en AC4 – geen einddatum E – F Stortingen Cash  SCT

(11)

Commerciële end date: clearing loten STET

• AP6 (006): Dringende Overschrijvingen

Aardcodes Gerelateerd product Alternatief?

Cfr 001 Cfr 001 Cfr 001

W Intracompany SCT met category purpose INTC I Interbancaire operatie To be examined by the banks

SEPA Direct Debit - End of Legacy 14 11 2013 7

SEPA

End of Legacy DOM80

(12)

End of Legacy DOM80: Tijdslijn Migratie

• Herinnering : 01.02.2014 is een zaterdag.

Creditors Datum Ultieme datum acceptatie nieuwe schuldeisers door de banken 31.01.2014 Ultieme datum acceptatie wijzigingen schuldeisersgegevens door de banken 31.01.2014 (schuldeiser wijzigt van bank, wijziging gegevens, …) Ultieme datum laatste afgifte door de schuldeiser aan zijn bank (tijdstip bepaald door de “end of day” definitie van iedere bank) 29.01.2014 Ultieme datum laatste afgifte Bank naar CEC/STET (schema cycle 3 in STET 11 00u) 30 01 2014 Ultieme datum laatste afgifte Bank naar CEC/STET (schema cycle 3 in STET ‐ 11.00u) 30.01.2014 Datum laatste settlement door CEC/STET 31.01.2014 Ultieme spildatum 30.01.2014 DOM80 unpaid 01.05.2014 Debtors Datum Ultieme datum acceptatie afgifte nieuwe mandaten (ongeacht het kanaal : papier, web b ki DOM70(1)) (2) 31.01.2014

• (1) DOM70 : de acceptatiedatum van de domiciliëringsopdracht door de domiciliebank is de acceptatiedatum van het DOM70 bestand + 14 dagen.

(2) De deadline is de datum van afgifte, dus afgifte later met antidatering worden niet meer geaccepteerd.

banking, DOM70(1)) (2)

9

SEPA Direct Debit - End of Legacy 14 11 2013

Questions?

(13)

“SEPA C

dit T

f

“SEPA Credit Transfers

Are you ready? ”

Are you ready?

Gilles Swinnen - BNP Paribas Fortis

1

Infosession - Febelfin - 14/11/2013

Agenda

1. The goal of SEPA

2. Statistics

3. Are you ready?

4. EPC Rulebook releases

2

(14)

The goal of SEPA

Multiple Local payment formats…

…

SCT

… towards 1 format for all credit transfers in EURO

French transfer XML-format + IBAN/(BIC) Belgian transfer CIRI-format + BBAN German Transfer … German Transfer 3 Infosession - Febelfin - 14/11/2013

SCT Migration statistics

85% 90% 95% 100% CEC % 52 30% 58,03% 59,80%61,59% 62,93% 62 97% 65,16% 67,44% 72,64%73,92% 60% 65% 70% 75% 80% Euro area CSMs 33,33% 38,83% 44,71% 45,09% 47,66% 52,30% 62,97% 29,57% 30,30% 34,86% 40,25% 46,95% 49,98% 52,78% 56,26% 35% 40% 45% 50% 55% 1 91% 16,07% 6 20% 13,90%16,86% 20,50% 21,07% 23,71% 27,16% , , 10% 15% 20% 25% 30% 35% 1,91% 1,80% 6,20% 0% 5% 10%

(15)

Are you ready ?

• Is all account related information converted to IBAN/BIC format?

• Is all account related information converted to IBAN/BIC-format?

• Are you able to generate XML?

• Is your banking channel SEPA-conform?

• Is your reporting SEPA-conform?

• Are the current internal procedures SEPA-conform?Are the current internal procedures SEPA conform?

5 Infosession - Febelfin - 14/11/2013

EPC - SCT Rulebook Releases

EPC SCT Rulebook Releases

Feb 2014

•

Clarifications:

•

Clarifications:

o

Additional text to align Rulebook with End Date Regulation text

•

Changes:

o

Extra reason codes indicating BIC not reachable at CSM for given Scheme

Feb 2016

•

No more BIC required for cross-border credit transfers (IBAN-only)

6

(16)

O h

Other:

• FAQ SCT published on website NBB : see

http://www nbb be/doc/ts/Products/PaymentSystems/SEPA/FAQ Nl pdf http://www.nbb.be/doc/ts/Products/PaymentSystems/SEPA/FAQ_Nl.pdf http://www.nbb.be/doc/ts/Products/PaymentSystems/SEPA/FAQ_Fr.pdf http://www.nbb.be/doc/ts/Products/PaymentSystems/SEPA/FAQ_En.pdf

• SCT Payments for beneficiaries in non-EEA countries

SCT Payments for beneficiaries in non EEA countries

 Regulation 1781/2006 (art 4-5): Obligation to provide

Beneficiary IBAN, Name and

Address

Infosession - Febelfin - 14/11/2013 7

Questions?

(17)

SEPA Di

t D bit

SEPA Direct Debit

… the final countdown

End date regulation

E d d t

01/02/2014

End date

= 01/02/2014

Belgian banks did not ask a waiver Belgian banks did not ask a waiver

MOB ERP - 14/11/2013

(18)

Status at European level (EPC)

► No waiver requested by Belgium

● 01/02/2014 for Euro countries

● 01/02/2016 for non-Euro countries

Core scheme

● Rulebook 7.0 implementation 01/02/2014 No new rulebook expected in 2014

B2B scheme

● Rulebook 5.0 implementation 01/02/2014 No new rulebook expected in 2014

BIC removed 01/02/2014 (domestic) BIC removed 01/02/2016 (cross border)

National Fact Sheets on Regulation 260/2012 on ECB Website :

MOB ERP - 14/11/2013

3

g

http://www.ecb.europa.eu/paym/sepa/about/countries/html/index.en.html

3

Status at European level

p

►E-mandates ►Survey At EPC ►Conclusion ? ►Febelfin workgroup ►Core 1 ►Core 1

►Spain, Austria, Germany in 2013 & 2014

►Fixed Amount scheme

►EPC has requested a list of activities that could be opt for FA Wh ’ ll d t th FA h ? ( d f d t ?)

►Who’s allowed to use the FA scheme ? (code of conduct ?)

►What about fixed amount ?

►How to interprete it ? Impact of the PSD 2 ?

(19)

End Date regulation

P t ti f th

►Protection of the consumers

►Banks have to offer (= obligation):

►Banks have to offer (= obligation) :

 Maximum amount  Periodicity

 Black list

Whit li t

 White list

Mandatory for Core Mandatory for Core

 Please inform customers not to add periodicity or amount

in the mandates

MOB ERP - 14/11/2013

5

 Only for debtor banks

5

Lessons learned- database NBB

►As per 01/02/2014, database will provide static data available for the customers who will use the DOM reference later on

customers who will use the DOM reference later on

►No amendment on the DOM 80 mandates after the End date

►new mandate is required

►Today, only paper mandates are available

►Archiving 10 years after last debitg y

MOB ERP - 14/11/2013

(20)

L

l

d th

d t

Lessons learned- the mandate

 Mandatory field on the Belgian SDD mandate (different from the Unique mandate reference)

 XML format: no tag for the “description of the underlined contract”

 Interbank mandate is published on the NBB website

 Fields on the template are mandatory

 Creditors should ask their banks to check the mandate form

 Creditors should ask their banks to check the mandate form they would like to use

 No details of kind of accounts should be added

 No stamp from the bank

 A th i f h ld b t d f th d t fi ld

MOB ERP - 14/11/2013

7

 Any other info should be separated from the mandatory fields

7

Lessons learned the mandate

Lessons learned- the mandate

 Cancellation of the mandates between the debtor and the

 Cancellation of the mandates between the debtor and the creditor (or via the debtor bank if mentioned in the Terms & Conditions)

 Mandate Core: consumers & non-consumers

 B2B is optional

► -> Core mandate can be signed by a Business debtorg y

► -> B2B mandate can not be signed by a consumer)

 B2B is not related to the type of account hold by the debtor but the quality of the client acting as a consumer or non consumer

(21)

Lessons learned- the mandate reference

►Rulebooks

►Reference has to be unique with the Creditor ID

►…subject to interpretation…

►-> 1 reference is possible for 2 mandates: 1 in core & 1 in B2B

►-> advice your creditors: no misuse is allowed

►Best advice: to use 1 unique reference per creditor to avoid any

►Best advice: to use 1 unique reference per creditor to avoid any confusion

►For Core, the unique mandate reference can be sent separetely from the mandate

MOB ERP - 14/11/2013

9

Lessons learned Business code

Lessons learned- Business code

BE 98 ZZZ 0456810810

When Creditor has an Enterprise n°:

Enterprise number (10 pos.)

The Business code can be used by the creditor Check digit does not apply to the business code Check digit does not apply to the business code

Not part of the creditor ID

MOB ERP - 14/11/2013

10

(22)

XML structure

File structure

3 LEVELS _{Group Header} _{« Group header »}

(FILE)

Payment Information 1 _{« Payment Information »}_{« Payment Information »} (BATCH)

Transaction Information 1

Transaction Information 2 « Transaction Information » (PAYMENT) Payment Information 2 Transaction Information 3 T ti I f ti 4 (PAYMENT) Transaction Information 4 Transaction Information 5 Payment Information 3 Transaction Information 6 MOB ERP - 14/11/2013 11

Test your files !

► Tools are available at banks side to test your XML files

► Your files can be analysed

► Errors are explained

► Validation is proposed

► Wh t h if COT’ t t d ?

(23)

Lifecycle of the sequence types

1.

SDD Sequence type sent by the Creditor

Type of R -trx

Before Due Date: Pacs.002 Reject or Request for Cancellation (RFC) Camt.056

Next collection with same mandate based on

R-transaction received

After Due Date: Pacs.004 Return/Refund

First Reject/RFC First

First Return/Refund Recurrent

Recurrent Reject/RFC/Return/Refund Recurrent Recurrent Reject/RFC/Return/Refund Recurrent

Last Reject/RFC Last

Last Return/Refund Mandate expired.

One OFF Reject/RFC One OFF

One OFF Return/Refund Mandate expired

MOB ERP - 14/11/2013

13

DOM 80 >< SEPA Direct debits

SEPA DD: Reimbursements are not possible

 I th DOM 80 t ld dit ll t th ( dit f SEPA DD: Reimbursements are not possible

 In the DOM 80 system, you could as creditor collect the money (credit of your account) but also reimburse your customers for any amount (debit of your account).

 In the SEPA Direct Debit system, reimbursements are possible via “Reversal” if same amount as for debit and same transactionReversal if same amount as for debit and same transaction

reference.

Otherwise, a Credit transfer will be needed.

MOB ERP - 14/11/2013

(24)

Non-target days

 New Year's Day  Good Friday  Easter Monday  1 May (Labour Day),

 Christmas Day and 26 December

MOB ERP - 14/11/2013

15

Reporting

► The management of the files/batches and transactions has an impact on the reporting

► B ki t b t h l l

► Booking at batch level

► If customer has a “global” parameter, he can also ask for details of the batch (request is made to the banks)( q )

(25)

Lessons learned –reason codes

AC01 Account identifier (IBAN) incorrect Incorrect IBAN

AC04 Account closed Account closed

AC06 Account blocked Account blocked (succession /bankrupcy)

AC13 I lid D bt t t A t t t ll d f DD

AC13 Invalid Debtor account type Account type not allowed for DD AG01 DD forbidden on this account for

regulatory reasons

Account not allowed for DD for regulatory reasons AG02 Bk operation code specified in the

message is not valid for receiver

Bk operation code specified in the message is not valid for receiver

AM05 D li ti ll ti S ll ti h b d i th t

AM05 Duplication collection Same collection has been done in the near past BE05 ID of th creditor incorrect Creditor ID incorrect

FF01 File format incomplete or invalidp XML file not duly filled out or correct-syntax errory y No/incorrect (syntax) mandate info in collection Amendement info is missing

MD01 No valid mandate No mandate/B2B mandate not yet confirmed

MOB ERP - 14/11/2013

17

Refund unauthorised transaction (13 months) MD02 Mandate data missing or incorrect Sequence type incorrect

Lessons learned- reason codes

MD06 Disputed authorized transaction Unconditional refund (Core 8 weeks) MD06 Disputed authorized transaction Unconditional refund (Core 8 weeks)

MD07 Debtor deceased Debtor deceased

MS02 Refusal by the debtor Refusal by the debtor at presentation

MS03 Reason not specified Limit the use of this code & select more specific one

PY01 Not routable Debtor bank is not reachable for SDD

RC01 Bank id (BIC)incorrect BIC is incorrect

RR01 Regulatory reason Regulatory reason

SL01 Specific service offered by the debtor bank Block mandate/white-black list/max amount/ periodicity

MOB ERP - 14/11/2013

(26)

Conclusion

►No choice, the migration is regulatory

►Banks and customers have to move towards SEPA

►No SEPA ..no business…

►Migration is hard process but …after migration is not far away…and SEPA will create opportunities for all users !

MOB ERP - 14/11/2013

(27)

Standards

Implementation of XML e-standards

Geert Van Antwerpen, KBC Bank

SEPA info-sessie ERP| 14 November 2013 1

Agenda

1. Standards general

2. (S)CT

3 SDD

3. SDD

4. Reporting

5 End dates

5. End dates

6. What’s next?

(28)

Standards

Standards - general

• ISO 20022 > EPC guidelines > Febelfin guidelines

• Self sufficient BE guidance (EN-FR-NL) compliant

with EPC customer-bank guidelines

• “Additional Optional Service” (AOS) for OGM

• Baseline: Banks can offer more + support of at least

last 2 versions

• No EPC/Febelfin XSD > hyperlink to general ISO

20022 XSD in chapter 1.4 of each standard

•

(29)

Credit transfers - (S)CT

ISO 20022 > pain.001.001.03

• Febelfin v2 = EPC v5-v6 compliant

• Febelfin v3 (> 31/1/2014) = EPC v7 compliant

Debtor agent option added : Other > Identification :

NOTPROVIDED



 Extra integrated: Cross-border non-SEPA

 Separate: Circulaire cheques via XML

SEPA Direct debit (SDD)

SDD for collection - ISO 20022 pain.008.001.02

SDD for reversal (and request to cancel) - ISO 20022 pain

007 001 02

007.001.02 • Febelfin v2 = EPC core v5 v6 / B2B v3 v4

• Febelfin v2 = EPC core v5-v6 / B2B v3-v4

• Febelfin v3 (> 31/1/2014) = EPC core v7 / B2B v5

CreditorAgent & DebtorAgent: option added: Other >

Identification: NOTPROVIDED

(30)

Reporting

Statements

Coda 2 3 > Structured Message 127 for SDD + SDD R codes table • Coda 2.3 > Structured Message 127 for SDD + SDD R codes table • XML statements: ISO 20022 camt.053.001.02 (V1)

Payment Status Report

y

p

• Feedback to customer before booking • XML: ISO 20022 pain.002.001.03

O ti l

• Optional

End dates > deadlines for acceptance

S / f S f

Service/product deadline for

acceptance

Standards after deadline

Credit Transfer in SEPA in CIRI01+51 until XML SCT

euro 30/1/2014

Non-SEPA Credit Transfer no end date CIRI51 + XML CT

Direct Debit DOM80 until XML SDD

Direct Debit DOM80 until

29/1/2014

XML SDD

(31)

What’s next?

Titel hoofdstuk

* Footnote

10 Event | dd month yyyy Source: Febelfin