Onboarding FXPs

As the SAP is sending and receiving payments on behalf of the FXP, the SAP is obliged to undertake due diligence upon the FXP. This could include standard Know Your Business checks as well as any local requirements.
Once the SAP has completed due diligence on an FXP, it should inform Nexus (via the IPS Operator) that it is willing to provide settlement account services to that FXP.

Streamlining the FXP onboarding process

The number of FXP-SAP relationships in Nexus can be significant, especially as the network scales. This depends on the number of IPSs in the network, the number of FXPs, and how many of those FXPs use SAPs (rather than being an IPS member). It is therefore important to streamline the FXP-SAP onboarding and due diligence process as Nexus scales. The same measures that are used to streamline the PSP-FXP onboarding process can be used here – see Streamlining the Onboarding Process.
In particular, it is recommended that SAPs use and accept the Wolfsberg Correspondent Banking Due Diligence Questionnaire (CBDDQ) when onboarding FXPs.