Payment Process for the Destination SAP

In the Destination IPS, a Nexus payment will follow the following steps in relation to the D-SAP:

After the D-IPS receives the Nexus payment instruction from Nexus:

1. the D-IPS sends the payment instruction to the Destination SAP. There are multiple options for the D-IPS to send this payment instruction to the D-SAP, depending on the D-IPS and D-SAP capabilities and preferences. This is further detailed in the section How the Destination IPS initiates the payment via the Destination SAP.

2. The Destination SAP confirms that the FX Provider has sufficient funds (or a sufficient line of credit) with them, and applies sanctions screening and compliance checks (if required by local regulations).

   • If the Destination SAP is happy to proceed with the payment, it will debit the FXP’s account with the D-SAP by the amount of the payment.

   • If the Destination SAP is not willing or able to process the payment, the D-SAP can reject the transaction.

3. The D-SAP either submits the payment instruction message to the Destination IPS (effectively giving the IPS the instruction to make payment to the Destination PSP) or rejects the transaction.

4. When the Nexus payment is confirmed by the D-PSP and settlement is successful, the D-IPS will confirm settlement to the D-SAP.

If required by local regulations, each SAP must screen the Sender and Receiver against the sanctions lists applicable in the SAP‘s jurisdiction, and perform any other required compliance checks.