Starting from 28 January 2008 when we have acceded to the Single Euro Payments Area (SEPA), we offer for our customers to effect euro payments in a rapid, sure and efficient manner without limitations on the transfer amount to all the EU member states as well as Iceland, Norway, Lichtenstein and Switzerland.
The fee charged for these payments is the same as for domestic euro payments (payments in EUR effected in Latvia within its territory).
In order to perform a European payment, your payments must comply with the following requirements:
- beneficiary's account should be specified according to IBAN format (without any spaces);
- destination of the payment must be within the EU or Iceland, Norway, Lichtenstein and Switzerland;
- payment type - economy or express;
- payer shall pay only the fee established by his or her bank (fees are shared).
In case a payment does not contain any of the details specified above, it is effected as ordinary International payment for a corresponding fee, and intermediary bank and beneficiary bank are entitled to charge an additional fee for processing of such payment.
Introduction of SEPA enhances standardisation, automation of transfers and reduction in costs both for the customers and banks.
SEPA (Single Euro Payment Area)
The Single Euro Payments Area (SEPA) denotes a single euro payments' area in which national and cross-border payments are harmonised. The first SEPA-related changes were effected on 28 January 2008. SEPA will have a direct effect on Latvia after its transition to the euro; the indirect effects will reach us sooner as the neighbouring countries are already using the euro.
The establishment of the single area is based on the Payment Services Directive (PSD) which was approved by the European Parliament on 24 April 2007. The PSD aims to ensure that EU cross-border payments, especially credit transfers and direct debits, and card payments are as easy, efficient and secure as national payments. The Directive provides the legal platform for the formation of the single euro payments area. At the same time the Directive enhances the rights and protection of all use rs of payment services (consumers, retailers, large and small enterprises and administrative agencies). SEPA includes all EU Member States and also Iceland, Norway, Liechtenstein and Switzerland.
Which areas does SEPA govern?
- Payment orders. The non-cash transfers among the banks which have joined the SEPA system were effected from 28 January 2008. In case of the electronic payments' system the rules shall lay down the use of international bank account number (IBAN) and bank identifier code (BIC); the payment delivery terms; the rights and liabilities of the participants; the conditions of payment forwarding, receipt and rejection; legal basis and other details.
- Bank cards. The application of the SEPA system will enable the use of all of the cards issued by the banks of EU Member States in all other Member States. Starting in 2008 all of the banks in EU have to issue bank cards equipped with a chip conforming to the EMV standard and these cards can be used for payment and for withdrawing money from ATMs in all EU Member States. From the end of 2010 all cards in use have to be applicable in the whole SEPA payment area.
How does SEPA influence the clients of Swedbank?
Swedbank as a member of the Swedbank Group has offer its clients all of the new possibilities arising from SEPA.
From 28 January 2008 all our clients have the possibility to make euro transfers to banks which have joined the SEPA system. This way you are able to use additional possibilities to forward information to the payee and our additional guarantees which the SEPA system provides.
The provision of banking services does not depend on state boundaries and this way it is possible to settle payments in Europe so that the enterprise only has one account in one bank. For the clients of Swedbank this means easier access to the international market, because as a subsidiary bank of Swedbank we are represented in many European countries
Procedure of preparing payment orders in RUB (Russian rubles)
The requirement to fill in the payment orders in Russian is based on the established banking practice and the following justification:
- Payment system. There are no precise data available whether any Regional Branch of the Bank of Russia accepts documents in English.
- Tax control. In most cases, the payment order has to contain be a taxation reference (with the payment amount indicated separately) or a notice of no tax paid. This reference is inserted for the purposes of the tax administration institutions of the Russian Federation requiring information in the official language of the Russian Federation.
- Currency control. Currency control implies compliance control of the respective financial transaction with the Russian legislation, as well as compliance control in respect of payment code VO (currency operation code). The function of currency control is performed by the authorised banks of Russia that are the agents of currency control and are entrusted with the control of the financial transactions effected by non-residents.
For the purposes of such control the following is required:
- A detailed description of the transaction in the payment order (for example, apart from the number of contract also the subject of the contact must be indicated: sale of goods or delivery of service etc.);
- A precise and unambiguous interpretation of the payment order by the employee of any bank and automatic control systems involved in the execution of the payment.
(Most Russian banks have partly automated the currency control process. The process uses text analysis pertaining to one or the other key word in the Russian language. Payments orders in the English language render the automatic control impossible. Consequently, these payment orders may be put aside for later verification or the respective control may get protracted. Also, considering that the use of the English language is contrary to the existing banking practice, certain Russian banks are likely to refuse such payments at all).
Taking into account the above, we cannot guarantee a prompt execution of payment orders prepared in the English language.
Due to particularities of the payment system, provisions of currency and tax control in the Russian Federation as well as on the basis of the existing banking practice in there, orders for payments in Russian roubles are to be prepared in the Russian language using the Latin alphabet to comply with the following transliteration rules:
||'' (two separate)
The fact that our banks use the same transliteration principles guarantees a correct interpretation of the text in the payment order even after its transliteration from Latin letters into Cyrillic and vice versa.
When effecting an international transfer in Russian roubles, make sure that apart from other standard payment details, the submitted payment order contains the following details:
- BIC code of the beneficiary's bank: 9-digit number;
- Correspondent account of the beneficiary's bank with the Russian Central Bank: a 20-digit number starting with 301… and with the last three digits coinciding with the last three digits of the BIC code;
- If the account of the beneficiary is with a branch of the beneficiary's bank, indicate also the correspondent account of the branch: a 20-digit number starting with 303;
- Name of the beneficiary (or name, patronymic (for residents), surname);
- Beneficiary's INN, if the beneficiary is a legal entity and resident of Russia;
- Beneficiary's account number: a 20-digit number;
- Accurate and clear purpose of payment, number and date of invoice and agreement, NDS (VAT) amount. If service or commodity is subject to tax exemption, you are required to indicate "WITHOUT NDS". When filling in the detail field of a payment order you must start with indicating a code which consists of combination of two letter ''VO'' (currency operation code) which is followed by transaction code (pdf file in Russian) that consists of 5 characters without any space betwen them.
For example, ''VO01010 ZA UGOLX PO DOGOVORU NO 1, NDS 300 RUB''. In order to avoid misunderstandings it would be advisable to write in Russian in Latin alphabet.
To avoid any hitches during processing of your payments, please bear in mind the following:
- where the beneficiary's name is longer than is possible to be entered in the payment field "Beneficiary's name", it is recommended to continue in the field "Beneficiary's address";
- Any information that is not to be transliterated into Cyrillic alphabet must be entered using Latin alphabet letters, separated by forward slashes, for example, the beneficiary's name: /International X Corporation/;
Payments failing to comply with the aforementioned criteria, may be rejected a/s Swedbank or by any of the authorised correspondent banks.
Procedure of preparing payment orders in BYN (Belorussian rubles)
To avoid delays in effecting BYN payments (Belorussian rubles), the following information must be indicated in the payment order:
- Beneficiary's bank name and address (street, city and country should be denoted);
- Beneficiary's bank MFO code - 3 or 9 digit code starting with 153001;
- Beneficiary's name (or name, surname) and address (street, city and country should be denoted);
- Beneficiary's UNN-code;
- Beneficiary's account number - 13 digit number;
- Exact purpose of payment, number and date of invoice and agreement should be denoted.
Payments in Belorussian rubles are to be prepared in the Russian language using the Latin alphabet to comply with the transliteration rules.
Procedure of preparing payment orders in CNY (Chinese renminbi yuan)
According to Chinese Republic law International payments in CNY are not allowed from/to private persons.
International payments in CNY between Companies are allowed only for Chinese Companies which have local license to receive international payments in CNY.
Bank has the right (as per correspondent bank requests) to require and customer has liability provide to bank export-import documents or other trade documentation.
CNY payments mandatory requirements:
- Beneficiary’s bank name, address and branch name.
- Beneficiary’s bank (branch) BIC (SWIFT code).
- Beneficiary’s bank’s branch 12-digit code – CNAPS number (CN).
Beneficiary’s bank: CNxxxxxxxxxxxx, BANK OF CHINA, NO.1 FUXINGMEINEI ST. XICHEN DISTRICT, BEIJING
- Beneficiary’s full name and address.
- Payment details – payment details and business category codeword which you can choose from attached link.
Payment details: /GOD/ payment for clothes, invoice No. 123, contract No.5 etc.
If mandatory details are missing payment will be cancelled.
Procedure of preparing payment orders in INR (Indian rupees)
To avoid delays in effecting payments in Indian rupees (INR), the following information must be indicated in the payment order:
- Beneficiary (full name of the person or company name), beneficiary’s account number, address and, preferably, beneficiary’s phone number;
- Beneficiary’s bank, including the full name and address of the branch of the beneficiary’s bank;
- Beneficiary bank’s SWIFT code;
- It’s obligatory to indicate the bank’s IFSC code (11-character code identifying the beneficiary bank) in the purpose of the payment;
- The purpose of the payment may not contain the word “loan”.
Procedure of preparing payment orders in Israeli shekels (ILS)
To avoid delays in effecting payments in Israeli shekels (ILS), the following information must be indicated in the payment order:
- Beneficiary (full name of the person or company name);
- Beneficiary bank’s SWIFT code;
- It’s obligatory to indicate the beneficiary's account number in IBAN format (23 digit number).