Receiving payments

The exact workflow for a Destination PSP receiving a Nexus payment will depend on:

• the PSP’s internal systems

• whether the PSP has real-time / near-instant sanctions screening capability

• whether the PSP supports the Request for Information process

Step 1: Receiving the Nexus pacs.008

Incoming Nexus payment instructions will be sent to the Destination PSP via the same method as domestic payment instructions (eg API or message queuing via the Destination PSP’s existing secure connection to the IPS).

The Destination PSP must accept the full comprehensive Nexus pacs.008 message (which will have more elements than a domestic payment message).

The domestic IPS may choose to translate the Nexus pacs.008 message to a domestic format; in this case, the domestic IPS will be responsible for defining the domestic message standards for Nexus payments and ensuring that it carries all the data necessary to support sanctions screening and comply with other regulations.

Step 2: Screen the payment

Before the Destination PSP accepts the payment instruction, it will need to screen the Sender against the sanctions lists applicable in the Destination PSP’s jurisdiction.

It is assumed that the Destination PSP will already have screened the Recipient as part of the PSP’s regular KYC, AML and screening processes on its own customer database.

The specific screening process and software used will vary from PSP to PSP.

As Nexus payments are supposed to be instant, it is preferable for PSPs to use a real-time API-based sanctions screening platform that can deliver a decision prior to accepting the payment, rather than legacy systems that screens transactions retroactively. (See below for options when the PSP cannot immediately screen against sanctions lists.)

Step 3: Issue an Request for Information (RFI) if necessary

If the payment triggers an alert against the sanctions lists, the Destination PSP may issue a Request-for-Information (RFI) process to the Source PSP to request further information on the Sender. This is described in detail in Request for Information, but in summary:

• Nexus will check if the Source PSP is able to process RFIs (based on the information provided by the IPSO when it first onboards the PSP);

  • If not, Nexus will respond with a camt.029 informing the Destination PSP that no further information is available (status code = NINF).

  • Otherwise Nexus will forward the request to the Source PSP.

  • When the Source PSP sends a response, Nexus will forward that response to the Destination PSP, as a camt.028 AdditionalPaymentInformationV11.

Step 4: Respond to Nexus

The Destination PSP must respond to Nexus with a pacs.002 within the timeout (maximum execution time) of the Destination IPS. The Destination PSP’s response will depend on whether the payment is time-critical or non-time critical:

• If the Destination PSP is happy to accept the payment, they should immediately credit the Recipient and send a pacs.002 to Nexus with the status code ACCC

• If the Destination PSP cannot immediately credit the Recipient (for example, because they need more time to resolve a sanctions screening alert, then they must:

  • Review the Instruction Priority element of the pacs.008 (/Document/FIToFICstmrCdtTrf/CdtTrfTxInf/PmtTpInf/InstrPrty/)

  • If the Instruction Priority is HIGH and the Destination PSP cannot immediately credit the Recipient, the Destination PSP MUST reject the payment by sending a pacs.002 with the status code “RJCT” to Nexus. Any reservation or movement of funds in either IPS will be cancelled/reversed automatically.

  • If the instruction priority is NORM, the Destination PSP may accept the funds now, without crediting them to the Recipient. The PSP can then take an additional period of time (to be defined in the Nexus Scheme Rulebook) to resolve the sanctions screening alert.

    • The Destination PSP should immediately respond with a pacs.002 with the status code ACWP (Accepted Without Posting)

    • Within the time defined in the Nexus Scheme Rulebook, the Destination PSP must send a second pacs.002 with one of the following status codes:

      • ACCC – if the payment was successfully credited to the Recipient

      • BLCK – if the funds were blocked due to a true positive hit against the sanctions list

      • RJCT – if the Destination PSP was unable to resolve the alert within the SLA defined by the Nexus rulebook

        • In this case, the Destination PSP will also need to submit a pacs.004 to return the funds.

Nexus will return the pacs.002 to the Source PSP, who will notify the Sender accordingly.

Optional Step 5: Returning funds

A Destination PSP may need to return the funds in the following scenario:

• The Instruction Priority in the pacs.008 was NORM, AND

• Sanctions screening generated an alert, AND

• The Destination PSP initially responded with a pacs.002 with the status ACWP (Accepted without Posting), AND

• The Destination PSP was then unable to review the sanctions alert within the SLA defined in the Nexus rulebook.

In this case, the Destination PSP is unable to decide either to credit the Recipient or to block the funds. The Destination PSP must therefore return the payment to the Source PSP.

This is done by submitting a pacs.004 instruction to the Destination IPS. See the next section, Payment Reversals, for further details.

This return will be processed at the original exchange rate.