EBAM & FBAR 101 · 2018-04-02 · An eBAM Status Report will be developed that will provide a...

© G Treasury SS, LLC 2008-2015

EBAM & FBAR 101

Glen Solimine

J.P.Morgan

Louis-Etienne Bérubé

SWIFT

Warren Davey

GTreasury


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What is eBAM?

Principals for adoption

eBAM evolution

Treasury operations

eBAM technologies

FBAR

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Efficiency gains

Base language End-to-end ?

Early adopters

Easy Electronic Bank

Account Management

Benefits BAM

Expectations

Best practices

Back-office investments

Business models Awareness building

Alternative to paper

Accessible Automation Ambitious

Multi-bank Mandates Messaging

solution

Market demand

Building blocks Compliance


Fax

Paper

Today

• Slow • Low integration

• Expensive • Low satisfaction

Tomorrow

• Faster/cheaper • Standardised

• Dematerialised • Automated/STP

eBAM – the vision for electronic Bank Account Management


What is eBAM?

• Electronic bank account management – Leverage ISO 20022 messaging for corporate to bank account management to support opening, maintenance and closing of accounts.

• Messages defined by the community to support bank account management using ISO 20022 messages.

Messages live and in production over SWIFT

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eBAM – Account Opening Example

Automate and streamline account management using industry standards

ISO 20022 messages

FileAct - Header specifications

Naming Conventions for attachments

Personal Digital signatures

Bank Corporate

Account Request

Acknowledgement &

Account Report

Account Opening Request

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Electronic Bank Account Management (eBAM)

CGI (Common

Global Initiative)- Working Group 4 (WG4)

Focused on providing a forum for corporations, banks and vendors to collaborate on fostering broad adoption and enhancing the quality, effectiveness and efficiency of electronic bank account management standards and processes around the world.

Objective To simplify implementation for both corporations and banks by developing common usage of fields in the messages. Define a harmonized set of ISO 20022 eBAM messages that will facilitate the progress toward adoption of the standard globally.

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Internet

Online Account Management

Client

Bank Portal

Client Bank

J.P. Morgan

Client

eBAM via SWIFT and Host-to-Host

Or other secure

Host-to-Host

Connection

Third-party/In-house

eBAM app

Bank 2

Bank 3

Digital Bank Account Management (dBAM) Models

J.P. Morgan will support multiple methods of account management as clients seek to take

advantage of emerging electronic bank account management capabilities


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State of the eBAM evolution


Principals for Adoption


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First Principal for Adoption – Simple is Better


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Second Principal for Adoption – Focus on data ….not documents


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Third Principal for Adoption – Collaborate and cooperate

"It is the long history of humankind (and animal kind, too) those who learned to

collaborate and improvise most effectively have prevailed."

Charles Darwin

Naturalist


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Why Collaborate?

Adoption offers Mutual Benefit

eBAM becomes more valuable to companies when more of their banks participate

© G Treasury SS, LLC 2008-2015 15

The Community Effort

Adoption and usage of eBAM is gaining momentum through unprecedented industry

collaboration spearheaded by J.P. Morgan.

“Ideas always travel in networks”

Steven R. Johnson

Scientist/Author

>100 Corporate/Bank

Members


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Mission & Objective

Provides a forum for financial institutions (banks and bank associations) and non-financial

institutions (corporates, corporate associations, vendors and market infrastructures) to

progress various corporate-to-bank implementation topics on the use of ISO 20022

messages and to other related activities, in the payments domain.

Simplify implementation for corporate users and thereby promoting wider acceptance of

ISO20022 as the common XML standard used between corporates and banks.

Achieved through consultation, collaboration and agreement on common implementation

templates for relevant ISO 20022 financial messages, leading to their subsequent

publication and promotion in order to attain widespread recognition and adoption.

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Common Global Implementation (CGI) initiative


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eBAM Working Group Scope Statement (redux)

CGI electronic Bank Account Management (eBAM) Working Group (WG4) is focused on providing a forum for

corporations, banks and vendors to collaborate on fostering broad adoption and enhancing the quality, effectiveness

and efficiency of electronic bank account management standards and processes around the world.

An objective of the group is to simplify implementation for both corporations and banks by developing common usage

of fields in the messages. Toward that end we will work to define a harmonized set of ISO 20022 eBAM messages that

will facilitate the progress toward adoption of the standard.

[…]

An eBAM Status Report will be developed that will provide a template depicting the flow associated with the business

process along with the harmonized message content.

The practice of eBAM benefits from the network effect; that is the more companies participate, the more valuable it

becomes to each participant. The success of this group will be measured not by the number of changes we make to

the standard messages, but rather by the number of clients, banks and vendors who productively use eBAM in their

day to day operations.


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Build your people network

Let others build on your ideas

Borrow ideas from others

Recycle old ideas

Leave here with a plan

“Coming together is a beginning. Keeping together is progress. Working together

is success.”

Henry Ford

Industrialist and entrepreneur

Call to Action


Treasury Operations


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Treasury Operations

Treasury’s handle 1000s of accounts all over the globe with many different banks and institutions

Audit asks every year who the signors are and to report for FBAR and other purposes

In preparation treasury goes through their ....

SPREADZILLA!


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Spreadzillas

Automating eBAM is the antidote to Spreazillas

Long list of either names or accounts

Data is sorted by header field

Not one spelling mistake in the entire file!

Limited to only one tab

Volunteers line up to work with Spreadzilla

How many of you find “non-employees” on Spreadzilla every year?


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Technologies for eBAM

Offer databases that contain referential integrity

This ensures databases know where records are stored in other areas

Look up signers and accounts

Accounts and signers

Signers by location

Signor by group

If a signor leaves they can be replaced quickly and easily

Workflow approvals for bank account management

Audits become fun events with pre-populated run on demand data


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Technologies for eBAM -continued

eBAM entry point are secured

Means the underlying data is secured

Workflow is secured

Channel of communication is secured

Tying account management with banking activity

FBAR reporting

Types of accounts

Requirements per institution

Storing bank letters


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eBAM an enabler

Huge time savings for

• Searching

• Reviews

• Audits

• Changes

Centralization

• Single source data for all banks

• Can be tied into ERPs for HR activity

• Not yet tied into hospital records


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eBAM is Here

Technologies

• Handle the workflow

Standards

Communication Protocols

• Ensure the data is passed securely and consistently

• Ensure the data passed can be read, received processed and confirmed


How can eBAM help with FBAR?

eBAM messaging

• Provides a standardized set of information in the account report message (acmt 013) that can be married with ending account balances to support FBAR reporting

Getting started

• Speak to your relationship banks, your vendor and SWIFT about your companies requirements.

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EBAM & FBAR 101 · 2018-04-02 · An eBAM Status Report will be developed that will provide a...

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