Bulk Payment Processing Guide

Purpose

This guide provides the standard operating procedure for processing bulk payment files through the Bank's payment infrastructure. Bulk payments are defined as batched payment instructions submitted as a single file containing multiple individual payment records, typically used for payroll processing, vendor payments, dividend distributions, and mass client disbursements.

Scope

This procedure covers all bulk payment files processed via the Bank's Bulk Payment Processing Platform (BPPP), whether submitted by corporate clients through the secure file upload portal or initiated internally by Bank departments.

File Format Requirements

Accepted file formats are CSV (comma-delimited), XML (ISO 20022 pain.001), and the Bank's proprietary fixed-width format. File specifications and templates are available on the corporate banking portal.

Processing Procedure

Step 1: File Submission

1. The client uploads the bulk payment file via the secure corporate banking portal (SFTP or web upload). Internal submissions are routed through the CBS bulk module.
2. Each file must include a control record containing the total number of transactions and the total payment value for reconciliation purposes.
3. Files must be submitted before the applicable cut-off time: 14:00 local time for same-day domestic processing, 12:00 for same-day international processing.

Step 2: File Validation

1. The BPPP performs automated validation checks on the uploaded file, including format compliance, mandatory field completeness, duplicate detection, and control total verification.
2. Files that fail validation are rejected with a detailed error report, which is made available to the submitter via the corporate banking portal within 30 minutes.
3. Partially valid files (where individual records fail but the majority pass) may be processed with the failed records extracted and reported separately, subject to client agreement.

Step 3: Sanctions and AML Screening

1. All individual payment records within the bulk file are screened against sanctions lists (OFAC, EU, UN, local) and internal watchlists.
2. Flagged records are quarantined and routed to Compliance Operations for manual review. The remainder of the file continues processing.
3. Compliance must clear or reject flagged records within four (4) hours of quarantine.

Step 4: Funding Verification

1. The system verifies that the originator's account has sufficient available balance to cover the total batch value plus applicable fees.
2. If funds are insufficient, the entire batch is held pending funding. The client is notified immediately via the portal and by email.
3. Partial funding is not permitted; the full batch amount must be available before processing commences.

Step 5: Approval

1. Bulk payments are subject to the Bank's Payment Approval Hierarchy. The applicable approval level is determined by the total batch value.
2. The approver reviews the batch summary, including total value, number of transactions, originator details, and any compliance flags, before authorising execution.

Step 6: Execution and Settlement

1. Upon approval, individual payment records are released to the appropriate clearing channel: ACH for domestic payments, SWIFT for international payments.
2. Settlement follows standard clearing timelines (T+0 for same-day ACH, T+1 for standard ACH, real-time for RTGS-eligible payments).
3. A batch execution report is generated and made available to the client via the portal.

Step 7: Reconciliation and Reporting

1. The Reconciliation team performs end-of-day reconciliation of all bulk payment batches against nostro/vostro account movements and clearing system confirmations.
2. Any discrepancies are investigated and resolved within two (2) business days.
3. A monthly bulk payments summary is provided to each corporate client and to the Head of Payments.

Service Level Agreements

Related Documents

• Payment Approval Hierarchy
• Domestic Wire Transfer Procedure
• International Wire Transfer (SWIFT) Procedure
• Corporate Banking Portal User Guide