Out-Law News 1 min. read
22 Apr 2015, 10:35 am
The application programming interfaces (APIs) launched by SWIFT can be used by companies to plug their systems into a global repository of "critical payments reference data", enabling the automated sanctioning of payments where there is a match in the data between the two systems.
Herve Valentin, head of reference data at SWIFT, said its API tools would help banks and major businesses "increase operational efficiency, reduce cost, and risk, dramatically reducing time spent on errors resulting from manual repairs and investigations."
"Through SWIFTRef APIs, users will be able to check queries against the latest information in the SWIFTRef repository via their proprietary applications obtaining an instant response that identifies and validates critical payments reference data," SWIFT said.
The data cross-referenced includes bank identifier codes (BICs), legal entity identifiers (LEIs), International Bank Account Numbers (IBANs), settlement instructions and national bank codes, it said.
"By using these APIs, financial institutions and corporates can automate their payments process using data stored centrally, eliminating the need for data storage on premises," SWIFT said.
Banking expert Tony Anderson of Pinsent Masons, the law firm behind Out-Law.com, said the technology would be useful for regulatory compliance as well.
"The technology will make it easier to record where transactions are sitting at any one point in time, helping banks and corporates to assess compliance with their regulatory obligations, including capital requirements, and to monitor potential tax liabilities," Anderson said.