Issuance of a counter-counter-undertaking (ICCO)

The DOKA-NG Bank receives instructions from the corporate client to issue a counter-counter-undertaking to the counter-undertaking issuing bank. The counter-issuing bank will request a local bank to issue their local undertaking in favour of an ultimate beneficiary.

The corporate client's instruction may be an electronic or non-electronic order.

When the Issuance is received electronically, the tags are mapped to respective fields as defined in the Incoming mapping (in Maintaining Field Mappings for Incoming Messages (DBISWH) transaction). The incoming electronic order can be received via Score (MT784) or Bolero (429).

When “Incoming Purpose” of Message from the corporate is 'ICCO', the Outgoing “Purpose of Message” will be defaulted to ‘ICCO’. The user is still allowed to select other Purpose of Message codes – ISCO or ISSU providing more flexibility to the user. This message is then sent by us, the Counter Counter Issuing bank to the Counter Issuing (BEC) Bank. The Handling type is defaulted according to the selected “Purpose of Message”.

The incoming and outgoing message always contains the sequence C with the details of the local commitment. Depending on the electronic communication standard used, the incoming corporate order might include sequence B with details of the counter-guarantee. The sequence B of the incoming message is assigned to the fields of sequence B and the sequence C to the fields of sequence C in the application.
The outgoing interbank order will include sequence B and sequence C.

• In this case, the application identifies the incoming message type (Score/Bolero) and sets the checkbox '“Incoming Corporate Order”'.
• The role ‘Applicant’ of sequence B from the incoming message (Tag 50) is mapped to the role 'CTR'.
• The role ‘Obligor’ of sequence B from the incoming message (Tag 51) is mapped to role 'APL'.
• For an incoming corporate order, the checkbox '“Suppress party in Outgoing SWIFT MT 760”' in sequence B parties panel is set by default when both parties applicant and obligor are filled. In such cases, tag 51 (seq. B) of the outgoing MT760 is not printed and tag 50 (seq. B) will be filled with the party entered in field obligor of sequence B.
• The role ‘Applicant’ of sequence C from the incoming message (Tag 50) is mapped to the role 'CTC.
• The role ‘Obligor’ of sequence C from the incoming message (Tag 51) is mapped to role 'APC'.
• For an incoming corporate order, the checkbox '“Suppress party in Outgoing SWIFT MT 760”' in sequence C parties panel is set by default when both parties applicant and obligor is filled. In such cases, tag 51 (seq. C) of the outgoing MT760 is not printed and tag 50 (seq. C) will be filled with the party entered in field obligor of sequence C.
• If role CTR is set, then Tag 50 of sequence B (Applicant) in the outgoing MT760 will contain details from role CTR, else it would contain details from role APL. Similarly, if CTC is set then Tag 50 of sequence C (Applicant) in the outgoing MT760 will contain details from role CTC, else it would contain details from role APC.
• Incoming mapping of Tag 52a of Sequence B for corporate messages is set to unmapped.
• Beneficiary details (Tag 59) of Sequence B is captured in the new role BEC (Intermediary Beneficiary). The outgoing message will be sent to the Intermediary Beneficiary who will be the Counter Issuing bank in this scenario.
• The Ultimate Beneficiary will always be set to Role BEN in the application which will be in this case Beneficiary from Sequence C.
• When confirmation instructions are received, the Confirming bank (tag 58a) is mapped to Role CNR (Incoming Confirming Bank). This is to store the incoming information; the user must then add the party to field Confirmation Party (CON – Confirming Bank) which would then be populated in the outgoing MT760 for tag 58a.
• For Standby L/Cs, when ‘Available with’ (Tag 41a) of Seq.B is received from the corporate, the party is mapped to Role AVB (Available with Bank). This role is available in the additional parties grid.
• For Standby L/Cs, when ‘Available with’ (Tag 41a) of Seq.C is received from the corporate, the party is mapped to Role AVC (Available with Bank C). This role is available in the Seq.C parties panel.

Here, the intermediary beneficiary is the party on whose favor the counter-counter undertaking is issued, which means that BEC will be the receiver of this outgoing MT760 message.

In this scenario Intermediary Beneficiary (BEC) and Local Issuing Bank (ISS) will be two different parties.
Once the message has been received by the counter issuing bank, they will issue the counter undertaking and send the request for issuance of the local undertaking to the local issuing bank.

• The party roles remains the same, for a manual input by the user as before SR2021 apart from the additional BEC role.
• “Applicant” of the Local Undertaking in Sequence C (Role APC) must be filled in the “Seq.C: Parties” panel.
• Point to note is Beneficiary of Sequence B (Role BEC- Intermediary Beneficiary) must be filled field “Intermediary Beneficiary BEC (Tag 59 of Seq.B)” in the “Seq.C: Parties” panel.
• “Ultimate Beneficiary” (Role BEN -in this case Sequence C Beneficiary) must be filled in the “Seq.C: Parties” panel.

is shown below.

• Receiver of Message
  • Counter Issuing Bank(BEC)
• “Incoming Corporate Order”
  • This checkbox is set when the message is received from a corporate.
  • For an outgoing ICCO case, it is expected that the incoming is always from a corporate order, hence the flag is set.
    This means that, if role CTR is set, then CTR will be populated in Tag 50 of the outgoing MT 760 else role APL.