Cross-Border Fund Transfer (CBFT)
Service features
A service enables fund transfers between countries in the Asian Payment Network (APN) for the member countries that signed up for APN Hub - CBFT service. The sending bank can instantly provide funds transfer service to their customer countries receiving through accounts of the beneficiary bank in other countries at lower service costs.
Service model
Example: Flow of transaction between ITMX Switch (Thailand) and KFTC Switch (South Korea)
1) When a customer (Sender) of an APN member bank (Sending Bank) requests a beneficiary account inquiry, the request will be sent to the foreign switch - KFTC, in the occasion that a customer (Sender) from South Korea transfers money to receivers of the member bank from Thailand.
2) The foreign switching system will verify preliminary data and message format as specified in an agreement with South Korea. The KFTC switching system will then process message reformatting from local-KR format to APN Hub ISO8583 message format and encrypt message as MAC – Message Authentication Code Cryptography, before passing the beneficiary account inquiry request to APN Hub system using message format specified in APN Hub technical specification for APN members.
3) The ITMX APN Hub system verifies message format and validates message data. After passing both processes, the system will check if the beneficial bank's data is under beneficiary switch of which country from APN members and will encrypt the new message sending the beneficiary account inquiry request to foreign switching of that beneficiary bank.
4) ITMX functions as Thailand's beneficiary switch, assisting beneficiary banks that use ITMX's APN Hub CBFT service. According this, ITMX's Single Gateway service will serve as a medium system for connecting to Thai beneficial banks. This connection was made on the former message type ORFT ISO8583 with ITMX to process message reformatting from APN Hub CBFT to ORFT ISO. This includes currency conversion from USD (APN Hub Settlement Currency) to THB (Local TH Settlement Currency) before passing to the beneficiary bank for processing beneficiary account inquiry, with the beneficiary bank responding to the beneficiary account or ITMX as one of the following:
- 4.1Approved and sent the data of beneficiary account to ITMX, as of mentioned in 5
- 4.2 Rejected
5) The beneficiary bank sends data from the beneficiary account inquiry response mentioned in 4) to ITMX Single Gateway (Beneficiary Switch)
6) ITMX Single Gateway (Beneficiary Switch) sends beneficiary account data and beneficiary account inquiry response messages from the beneficiary bank to ITMX APN Hub Switching system.
7) ITMX APN Hub Switching system sends beneficiary account data and beneficiary account inquiry request response messages from the beneficiary bank to the sending switch - KFTC.
8) KFTC (Sending Switch) sends beneficiary account data and beneficiary account inquiry response messages to the sending bank. Following that, the sending bank is responsible for displaying transaction information via the service channel of that transaction in order to inform the sender for consideration on making voluntary transaction confirmation. The transaction information displayed to inform senders included following:
8.1 Sender Name
8.2 Sending Bank Name
8.3 Transaction Date/Time
8.4 Receipt/Transaction Reference Number
8.5 Sender Amount – THB
8.6 Beneficiary Name
8.7 Beneficiary Account Number – Optional
8.8 Beneficiary Amount – USD
8.9 Reason for Cross Border Fund Transfer
9) After the sender validates the information mentioned in 8) and confirms the transaction, the beneficiary bank will proceed with the deduction from the sender's account as previously informed and send the remittance request confirmation message to KFTC Switch (Sending Switch).
10) The KFTC switching system will verify preliminary data and message format as specified in an agreement with South Korea. The KFTC switching system will then process message reformatting from local-KR format to APN Hub ISO8583 message format and encrypt message as MAC – Message Authentication Code Cryptography, before passing the beneficiary account inquiry request to APN Hub system using message format specified in APN Hub technical specification for APN members.
11) The ITMX APN Hub system verifies message format and validates message data. The system will check for any previous beneficiary account inquiry requests. If no prior request was made, the system will reject the message. After passing verification and validation processes, the system will check if the beneficial bank's data is under beneficiary switch of which country from APN members and will encrypt the new message sending the remittance confirmation request to foreign switching of that beneficiary bank.
12) ITMX functions as Thailand's beneficiary switch, assisting beneficiary banks that use ITMX's APN Hub CBFT service. According this, ITMX's Single Gateway service will serve as a medium system for connecting to Thai beneficial banks. This connection was made on the the former message type ORFT ISO8583 with ITMX to process message reformatting from APN Hub CBFT to ORFT ISO. This includes currency conversion from USD (APN Hub Settlement Currency) to THB (Local TH Settlement Currency) before passing to the beneficiary bank for validation of the beneficiary account. The beneficial bank will validate the data integrity of the beneficiary account inquiry request and remittance request confirmation to ensure consistency, as specified in ITMX's operating manual. The beneficiary bank can send the confirmation of the remittance request to ITMX in one of the following:
- 12.1 Approved
- 12.2 Rejected
13) ITMX Single Gateway (Beneficiary Switch) forwards the beneficiary bank's remittance confirmation response to ITMX APN Hub Switching.
14) The ITMX APN Hub Switching system sends the remittance confirmation response to KFTC (Sending Switch)
15) KFTC (Sending Switch) sends the remittance confirmation response to the sending bank. Following that, the sending bank is responsible for printing receipts for the sender, which include the following information mentioned in 8.
Banking Institutions
Qualifications of the applicant
1) The applicant must be a member bank of ITMX's Single Payment System service.
2) The applicant must request for APN Hub Services application and prepare an attachment of the service agreement on providing cross-border withdrawal and money transfer services to the member bank customers from Asian Payment Network (APN) member countries.
3) The applicant must comply with the service's code of conduct and regulations relating to Anti-Money Laundering, Combating the Financing of Terrorism, and Fraud Protection (AML/ CFT) as required by national law.
Revocation of Membership
1) Membership is revoked at the request of the member bank upon cancellation of the APN Hub Services contract.
2) Membership is revoked at the request of the member bank upon cancellation of the Single Payment System contract.
3) Membership is revoked upon the termination of APN Hub Services' membership contract due to the disqualification of that member bank as specified in the contract.
Bank Customers
The customer of the APN Hub Services member bank can access cash withdrawal/balance inquiry services through ATM of foreign countries, including cross broader remittance service under service conditions of that bank. The customer can contact the bank of service directly for more information.
The company's APN Hub Service provides cross-border services via an APN Hub system linked between Asian Payment Network (APN) member countries using traditional technology and the ISO 8583 message standard. The company operates the APN Hub system and handles switching for transactions involving two APN Hub system member countries. APN Hub provides two services: Cross-Border ATM Service (CBAS) and Cross-Border Fund Transfer (CBFT).
of Service
