OPERATIONAL REGULATIONS
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Operational Regulations Version 2012-06-18 OPERATIONAL REGULATIONS CONTENTS 1 INTRODUCTION ..................................................................................................................... 3 1.2.5 Objectives ..................................................................................................................... 3 1.2.5 Terminology .................................................................................................................. 3 2 FUNCTIONALITY .................................................................................................................... 4 2.1. DOMESTIC BANKING ....................................................................................................... 4 2.1.1 Account Management .................................................................................................... 4 2.1.2 Funds Transfer ............................................................................................................. 4 2.2 REAL TIME CLEARING - RTC ....................................................................................... 17 2.2.1 Introduction ............................................................................................................. 17 2.2.3.2 Unpaids and Recalls ............................................................................................ 18 2.2.4. Cut-Off times are as follows ........................................................................................ 18 2.2.5. Limits .......................................................................................................................... 19 2.3 ELECTRONIC FUNDS TRANSFER SERVICE – EFTS .................................................. 20 2.4 BULK ELECTRONIC FUNDS TRANSFER SERVICE – BEFTS ..................................... 23 2.4.2 Service Options: ...................................................................................................... 23 2.5 ACCOUNT VERIFICATION SERVICE – AVS ................................................................ 26 2.6.1 Overview ................................................................................................................. 28 2.6.2 Unpaids, Disputes and Recalls ................................................................................ 28 2.6 NON AUTHENTICATED EARLY DEBIT ORDER SYSTEM ........................................... 28 2.6.3 Cut-Off times are as follows ........................................................................................ 29 2.6.4 Credit Tracking............................................................................................................ 29 2.6.5 Limits .......................................................................................................................... 30 2.6.6 Forms of Authority....................................................................................................... 30 2.7 Transact Alert ...................................................................................................................... 32 2.7.1 Introduction ............................................................................................................. 32 2.7.5 Create/Modify Transact Alert....................................................................................... 32 Confidentiality ........................................................................................................................... 33 2.8 THIRD PARTY FUND ADMINISTRATOR ...................................................................... 34 2.8.1 Introduction ............................................................................................................. 34 2.8.2 Description .............................................................................................................. 34 2.8.3 Overview ................................................................................................................. 34 2.8.4 Segregation of Duties .............................................................................................. 34 2.8.5 Limits ....................................................................................................................... 36 2.8.6 Access..................................................................................................................... 36 2.8.7 Release Levels ........................................................................................................ 37 2.8.8 TPFA Property guarantees release and approval rights .......................................... 37 2.8.9 Cut-Off Times .......................................................................................................... 37 2.8.10 Service availability ................................................................................................... 37 2.8.11 Missed Cut-off Times............................................................................................... 37 2.8.12 Contingency Plan .................................................................................................... 38 2.9 DOMESTIC TREASURY ................................................................................................ 39 2.9.2 Overview ................................................................................................................. 39 2.9.3 Segregation of Duties .............................................................................................. 39 2.9.4 Action Dates ............................................................................................................ 40 2.9.5 Cut-Off Times .......................................................................................................... 40 2.9.6 System Availability................................................................................................... 40 2.9.7 Contingency Plan .................................................................................................... 40 2.10 INTERNATIONAL BANKING .......................................................................................... 41 2.10.2 Introduction ............................................................................................................. 41 2.10.3 International Banking Account Management Overview ............................................ 41 2.10.4 International Banking Funds Transfer Overview ...................................................... 41 2.10.5 Binding Agreement .................................................................................................. 41 2.10.6 Purchase of Foreign Currency ................................................................................. 41 2.10.7 Sale of Foreign Currency ......................................................................................... 41 1 Operational Regulations Version 2012-06-18 2.10.8 Segregation of Duties .............................................................................................. 42 2.10.9 Beneficiary Details ................................................................................................... 42 2.10.10 African Transactional Gateway ............................................................................ 43 2.10.11 African Transactional Gateway Overview ............................................................. 43 2.10.12 Data Accuracy ..................................................................................................... 43 2.10.13 Value Dates ......................................................................................................... 43 2.10.14 Cut-Off Times ...................................................................................................... 43 2.10.15 Exchange Control – Document Management ....................................................... 45 2.10.16 Limits ....................................................................................................................... 45 Audit Reports ............................................................................................................................ 46 2.1.5 System Availability................................................................................................... 47 2.1.6 Contingency Plans................................................................................................... 47 2.11 FX TRADING.................................................................................................................. 48 2.11.2 FX Trading Overview ............................................................................................... 48 2.11.3 Binding Agreement .................................................................................................. 48 2.11.4 Receipt and Confirmation of Deals .......................................................................... 48 2.11.5 Cancellation of Deals............................................................................................... 48 2.11.6 Limits ....................................................................................................................... 48 2.11.7 Data Accuracy ......................................................................................................... 48 2.11.8 Processing Times .................................................................................................... 48 2.12 CUSTODY COMMUNICATIONS .................................................................................... 49 2.12.2 Functionality ............................................................................................................ 49 2.12.3 Pending Reason Codes on Trade............................................................................ 52 2.12.4 Responsibility Guidelines for Electronic Instructions ................................................ 52 2.12.5 Risk Management ................................................................................................... 52 2.12.6 System Availability................................................................................................... 52 2.12.7 Contingency Plan .................................................................................................... 52 2.13 INTERNATIONAL TRADE SYSTEM .............................................................................. 53 2.13.2 International Trade System Overview ...................................................................... 53 2.13.3 Binding Agreement .................................................................................................. 53 2.13.4 Processing Times .................................................................................................... 53 2.13.5 Limits ....................................................................................................................... 53 2.13.6 Secure Messaging ................................................................................................... 53 2.13.7 Data Accuracy ......................................................................................................... 53 2.13.8 System Availability................................................................................................... 53 2.13.9 Status Codes and Descriptions ............................................................................... 53 2.13.10 SWIFT (Society for Worldwide Financial Telecommunications) characters .......... 54 3 SYSTEM AVAILABILITY ....................................................................................................... 55 3.8 The Service .................................................................................................................... 55 3.9 The Support.................................................................................................................... 55 4. RISK MANAGEMENT............................................................................................................ 55 5. RECORD MAINTENANCE .................................................................................................... 60 6. COMMUNICATION ............................................................................................................... 60 7. FEES ..................................................................................................................................... 60 8. DISCLAIMER ........................................................................................................................ 60 9. TERM AND CONDITIONS .................................................................................................... 61 10. PRIVACY AND SECURITY STATEMENT ......................................................................... 65 11. APPENDIX “A” ................................................................................................................... 67 12. APPENDIX “B” ................................................................................................................... 68 2 Operational Regulations 1 Version 2012-06-18 INTRODUCTION These Operational Regulations form an integral part of the Standard Bank Business Online agreement between SBSA, the Principal and the Participant(s). 1.2.5 OBJECTIVES To provide the procedures and regulations under which the Service operates To provide a brief overview of the functionality of each module To highlight the responsibilities of the Principal and/or Participant(s) with regard to the use of the service 1.2.5 TERMINOLOGY The following abbreviations will be used within the text: CFC FMO SBSA- EFTS SDPS STP PASA NDPS IS - Customer Foreign Currency account Financial Market Operations Used interchangeably to refer to The Standard Bank of South Africa Limited Electronic Funds Transfer Service Same Day Pay Service Straight Through Processing Payment Association of South Africa Next Day Pay Service Investor Services 3 Operational Regulations 2 Version 2012-06-18 FUNCTIONALITY 2.1. DOMESTIC BANKING 2.1.1 Account Management Overview Viewing of Balances for Current and Savings Accounts, Call, Notice and Fixed Deposits and Business Card Accounts of the main company as well as details of all Subsidiary Accounts linked to the Company’s Master Account Provisional Statements for Savings, Call, Notice and Fixed Deposits 365-day Statement history for Current Accounts One calendar month’s statement history for Business Card Accounts Transaction details for all Current Accounts Stop order facility on Current and Savings Accounts Stop payment facility on any cheque issued, blank cheque book or debit order Notice Deposit facility for giving notice, cancelling and performing a notice enquiry Daily, weekly or monthly statement cycles, as recorded and maintained by the Branch Systems, can be selected starting from any chosen day 2.1.2 Funds Transfer 2.1.2.1 Overview Transfer funds between the account holders own SBSA accounts Pay ‘Third Parties’ such as creditors, salaries and wages Issue bank guaranteed cheques on Electronic Funds Transfer Service – credit transactions Make collections from debtors Load creditor, debtor details and payment details for Companies listed on the Company Deposit Identifier Process returned/ redirected transactions 2.1.2.2 Segregation of Duties In order to capture or effect Creditor/Debtor details or effect a Payment/ Collection/ Transfer, a number of actions have to be performed: Process Actions required Creditor/ Debtor Create/ Import Details Audit Verify/ Authorise change Release Payments/ Collections/ Transfers Audit Verify / Authorise change Release Create/ Import Final Audit 4 Operational Regulations Version 2012-06-18 An explanation of each action follows: Action Explanation Create Import Audit Verify Authorise change Release Operator captures and validates new creditor/debtor details or transactions for making payments/ collections/ transfers (Validate – check for valid branch, account, date and creditor/debtor details information. Note: SBSA cannot validate account names against account numbers. All systems validate account numbers only. Operator loads creditor/ debtor details or transactional batches captured on offline software, and then imports into the online system. Operator prints audit reports, which partially ‘locks’ creditor/debtor details or transactional batches, preventing modifications or deletions of transactions. The printing of an Interim Audit Report is optional, but highly recommended. Modifications can be made by allowing an ‘authorised change’. Operators ‘lock’ creditor/debtor details or transactional batches, preventing modifications or deletions unless authorised to do so. Operators ‘unlock’ creditor/debtor details or transactional batches, permitting modifications or deletions to an audited or verified creditor/debtor or transactional batch Operator authorises SBSA to process a transactional batch. Release levels and limits govern which, and how many, operators are required to send a transactional batch for processing to SBSA. By releasing, each operator confirms that the details of the transactional batch have been personally checked and are correct. Release only The release level can be seen as an electronic signatory and should be allocated appropriately. The release only option is available to single operator users, whereby the capture and release is required without having to audit and verify. Release Levels Releasing enables an operator to successfully create a Creditor/Debtor and for Creditor / each operator confirms that the details of the Creditor/Debtor have been Debtor personally checked and are correct. Release levels govern which and how many, operators are required to create or modify a Creditor/Debtor. Final Audit Operator downloads and prints the Final Audit Report. This is essential as it is the only document of proof of payment and is used for the tracing of Report payments. The printing of a Final Audit Report cannot be made mandatory, but is highly recommended. The Segregation of Duties is a key component to managing the Service and associated risks. Each action in the process should be allocated to different people. The greater the segregation of duties the greater the control. The Principal and/ or Participant(s) can select any combination of duties per person. A typical example of the allocation of actions per operator is: Clerk- Create/Import and Audit Supervisor- Verify and Authorise Change Manager- Release A facility of release only is available. This allows a single operator to create and release a batch, without following the workflow of ‘auditing’ and ‘verifying’. Extreme caution is advised when requesting this option as it allows any operator who has the ‘create’ and ‘release’ access levels the ability to effect payments without forcing the normal manual workflow. Please note: the final audit report must still be printed. 5 Operational Regulations 2.1.3 Version 2012-06-18 Creditor/ Debtor Details There are different ways in which creditor/ debtor details can be managed: Pre-format (bank-stored CDI/Creditor/Debtor) Account details are stored on the SBSA mainframe and can be modified on-line up until 18:45 on weekdays (no amendments can be made after 18:45 on weekdays, after 09:45 on Saturdays or Sundays and public holidays for security reasons) or during imports by the Principal and/or Participant(s). Free-format (ad-hoc) Account details are entered by the Principal and/or Participant(s) as the transactions are captured online or imported (no amendments can be made after 18:45 on weekdays, after 09:45 on Saturdays or Sundays and public holidays for security reasons). The Principal and/or Participant(s) are responsible for managing the additional risk inherent in selecting this option and SBSA requires that the Principal and/or Participant(s) verify the correctness of the payee details on the Interim Audit Report, segregate operator functions and/or arrange for dual release. Validation of Creditor/Debtor Account Details The following validation rules are performed by SBSA on Branch and Account numbers for Bankstored and Ad hoc creditor/debtor details: 1. When the Creditor/Debtor Account numbers of an SBSA account are captured, the account number is checked to see if it is a valid account number, at any SBSA branch. 2. When the Creditor/Debtor Account numbers of a non-SBSA Bank account are captured, the normal Bankserv validations are performed to verify that the branch numbers and account numbers are valid according to Bankserv rules. Straight Through Processing The law governing electronic payments recognises account numbers as being the basis for applying the credit or debit. Unlike cheque law, any name or commentary attached to an electronic payment is completely ignored. It is the responsibility of the Principal and/or Participant/s to ensure that the account and branch number details are correct. Furthermore, it is important that the Principal and/or Participants recognise that SBSA does not validate account names against account numbers, neither does SBSA nor the banking industry check that account numbers are consistent with branch numbers. If the Principal and/or Participants use the Ad hoc Creditor/Debtor details option, they must ensure that they have implemented the necessary internal controls to verify these details and reduce all associated risk. When a payment file is processed containing Bank-stored Creditor/Debtor details, the information is validated against the Creditor/Debtor details file stored at SBSA, to ensure that it is contained in the file. The details in this file were captured during the ‘Create’ Creditor/Debtor details process and were subject to the above validations. 2.1.4 Data Accuracy All data provided to SBSA must be valid and correct. Incorrect data may result in rejections, which could delay the completion of the transaction. Payments made to incorrect accounts as a result of incorrect data can only be recovered by negotiation (or legal process) with the payee. Please ensure you understand the points made in the paragraph above concerning Straight Through Processing. 6 Operational Regulations Version 2012-06-18 The Principal and/or Participant(s) must, in conjunction with SBSA, test the file import service with data upon first use of the system. 2.1.4.1 Authority to Debit Legislation covering electronic processing requires that an Authority to Debit must be held by the Principal and/or Participant(s) for every Third Party Account to be debited. An account holder may dispute a transaction if they allege (in writing) that they did not authorise the debit, that the drawing contravened their authority or that they had instructed the Principal and/or Participant(s) to cancel the debit order. If the complaint is lodged within 40 days after Action Date, the account holder’s bank will reverse the debit immediately from the Principal’s and/or Participant’(s) nominated account. If the complaint is lodged more than 40 days after Action Date, the account holder’s bank will raise it with SBSA. SBSA acting on the account holder’s behalf, will give the Principal and/or Participant(s) 40 days written notice that the transaction will be reversed, if no proof is furnished to validate the authorisation. 2.1.4.2 Action Dates Transactions will be processed by the specified ‘Action Date’ provided that the Cut-Off Times are adhered to. Please note: The following rule applies for ‘Same Day Soonest Value (SSVS) batches that are future dated: The runs are processed at 07h00, real-time, therefore funds must be cleared and available before the payment will be effected. SBSA does not guarantee the order in which transactions are processed and all processing is random. In utilizing this service the Principal and/or Participant agrees to this and indemnifies SBSA against any loss or damages suffered by the Principal and/or Participants arising herefrom. 2.1.4.3 Cut-Off Times Please note: The Principal and/or Participant(s) are responsible for ensuring that transaction batches are released and successfully processed prior to the specified Cut-Off Times for making payments, collections and transfers. Warning: ‘High Volume’ batches greater than 3000, need to be processed by 15h00. Processing after 15h00 might result in partial processing of batches or unsuccessful processing. 7 Operational Regulations Version 2012-06-18 Service Options GENERAL PAYMENT CUT-OFF TIMES STANDARD PAYMENT CUT-OFF TIMES TABLE Cut-Off Time Transaction Same Day Soonest Value (Value & Sight) Same Day Soonest Value Same Day Soonest Value Overnight Processing Same Day Pay Service SDPS ‘F’ (please see note) Same Day Pay Service SDPS ‘F’ Same Day Service SDPS ‘G’ (Please note) Same Day Service SDPS ‘J’ (Please note) Example Banks Affected Week Day Saturday Transaction Date Value Date/ Sight Date Action Date Standard Bank Agent Banks The Standard Bank South Africa Limited only 24 hour processing 24 hour processing Monday Monday Monday None Value cut off 18h45 Value 18h45 All other Banks excluding The Standard Bank of South Africa Limited but including Standard Bank Namibia 15h00 09h45 Monday Monday Monday Tuesday All Banks 18h00 18h00 Monday Tuesday Wednesday Wednesday The Standard Bank of South Africa Limited only 18h45 18h45 Monday Monday Monday None Standard Bank Namibia only 15h00 09h45 Monday Monday Monday None All Banks 15h00 09h15 Monday Monday Tuesday Tuesday All Banks 15h00 09h15 Monday Monday Monday Tuesday All Banks 18h00 Service available (please note) Monday Wednesday Wednesday Wednesday cut off Pay see Pay see Dated –One Day Service not see 8 Operational Regulations Dated –Two Day Service Next Day Pay Service All Banks Version 2012-06-18 18h00 Service available (please note) not Monday see Thur Thur Thur * * * All Banks 15h00 09h00 Monday Tuesday Tuesday Tuesday Standard Bank Only 24 hour processing 24 hour processing Monday Monday Monday None Value cut off 18h45 Value 18h45 15h30 11h00 Monday Monday Monday None Own Accounts Domestic Treasury Funds Transfer Standard Bank only cut off Please note: Official cut off times versus actual physical cut off times Physical cut off times are later than official cut off times to allow SBSA to complete processing for payments lodged prior to the official cut off times. This additional time should not be relied upon by clients when submitting payments, and no commitments are offered by SBSA for payments lodged after official cut off times. Host-to-Host (Overnight Service) Cut off time is 18h00 due to large volume processing. SDPS SDPS ‘F’ = Standard Bank payments only; SDPS ‘G’ = Standard Bank and Agent Bank payments will have sight the next working day; SDPS ‘J’ = Standard Bank payments will have sight on action date and Agent Banks will have sight the next working day. EFTS – One Day Service The One Day Service allows for a Saturday to be an action date. The One Day Service allows Saturday as a valid business day i.e. if your action date is a Monday you can release on a Friday. EFTS – Next Day Pay Service The Next Day Pay Service allows for a Saturday to be an action date. The Next Day Pay Service allows Saturday as a valid business day i.e. if your action date is a Monday you can release on a Friday. RTGS – Real Time Gross Settlement All transactions equal to and greater than 5 million Rand are to be processed via RTGS; Customers may process transactions below 5 million via RTGS, however settlement of amounts equal to and greater than 5 million Rand transaction will take precedence over amounts less than 5 million; SBSA does not guarantee the settlement of transactions below 5 million Rand within the same day and Customers make use of the service in this instance at their own risk; RTGS transactions will be charged at a premium rate irrespective of the amount, and pricing schedules must be consulted in this regard; SBSA shall not be held liable for damages incurred due to the use of this service other than intended for in the first point above, including but not limited any direct, indirect,special or consequential loss or damages (including without limitation loss of contracts, loss of income, interest, penalties and loss of profit). 9 Operational Regulations Version 2012-06-18 NB Public Holidays & Sundays cannot be considered as valid business days, and will extend required lead times PAYMENTS AND COLLECTIONS TO AND FROM STANDARD BANK NAMIBIA ACCOUNT BENEFICIARES (USING SSVS, SDPS ‘J’ AND ‘F’ SERVICE) This section applies to any account holder wishing to make a payment to/collection from a Standard Bank Namibian Account Beneficiary (“Namibian Beneficiary”). Customers must be aware that when making a payment into/collecting from a Namibian Beneficiary intra-day delays may occur in respect of the Same-Day Sight Date. Please note that for such payments to/collections from Namibian Beneficiaries, the Value Date transaction will remain as is, namely, the action date. Customers must be aware that in order to obtain Same-Day Sight Date, Namibian Beneficiary transactions must be submitted on or before 15:00 Monday to Friday and on or before 09:45 on Saturday. For payments to/collections from Namibian Beneficiaries, the following Payment Cut-Off Times will apply: NAMIBIAN BENEFICIARY PAYMENT CUT-OFF TIMES Payments/Collections to Namibian Beneficiaries using the SSVS, SDPS’J’ and ‘F’ Service Monday - Friday Customer Payment/Collection Cut-off Times Intra-day Processing Times Day-before from 16h01 onwards 08h30 08h30 to 11h00 11h00 11h01 to 14h30 14h30 14h31 to 16h00 16h00 Saturday From 16h01 on Friday to 08h30 08h30 08h31-11h00 11h00 GENERAL COLLECTIONS CUT-OFF TIMES Cut-Off Time Transaction Type Banks Affected Week Day Dated –Two Day (Debits) All Banks 18h00 Same Day Debits All Banks 15h00 Example Saturday Service not available 09h15 Transaction Date Monday Monday Value Date Sight Date Standard Bank Agent Banks Thurs Thurs Thur * * * Monday Monday Tuesday “Sight Date” means the date on which the funds will be available in the account and can be viewed. 10 Operational Regulations Version 2012-06-18 “Value Date” means the date on which the account will reflect that the funds have been deposited in the account, but are not yet available for withdrawal. Where the cut-off times are outside of office hours, we recommend you process your runs within office hours as no support is available after 17h00. NOTE: Please see section above applying to collections from Standard Bank Namibia Account Beneficiaries. Missed Cut-off Times The Principal and/or Participant(s) must make every effort to meet the relevant Cut-Off Times. Operators will be informed if they have missed the Cut-Off Time via a screen message, which will instruct the Operators on how to proceed. The type of service in use (Same Day or Dated), and the method of capture (online or batch import) will determine the way in which the transactions will be processed. The Host-to-host service on zero release does not warn customers of errors in the file, nor of missing cut off times. In the case of a missed cut off time, the system will default to the next available action date. SBSA will not be liable for any claim, including interest claims, arising from missed Cut-Off Times. 2.1.4.4 Default to Cheque This method of payment option is only available on the Dated, One and Two to Five Day Service. The Principal and/or Participant(s) may request electronic payments to default to cheques for transactions where invalid account or branch numbers are submitted or insufficient lead time is given to process the transaction. This can be achieved by selecting this option when signing up for the Service. The cheques will be available for collection from the Regional Business Online offices. 2.1.4.5 Incorrect / Duplicate Transactional batches and Account Details The Principal and/or Participant(s) are responsible for ensuring that they do not import the same batch twice, thereby creating a duplicate batch. (Duplicate batches have different batch numbers but contain the same information). Incorrect/duplicate transactional batches and account details can only be corrected using the appropriate channels mentioned below. The Principal and/or Participant(s) take full responsibility for these situations and will not hold SBSA liable. SBSA will assist where possible. The specific situation will dictate the method that should be used to address these problems. Recalls A recall is a request to SBSA to stop a transaction/ batch from being processed. Recalls can be performed under the following conditions: They only apply to Dated Two Day Service/ Collections (There is no recall facility for the Same Day Service or the One Day Service) They must be communicated, in writing, to SBSA no later than 09h00 on the business day prior to the Action Date They are not guaranteed by SBSA. SBSA will endeavour to carry out the instruction, but is not liable if the request is unsuccessful. Reversals It is not legally possible to reverse electronic credit and debit transactions. 11 Operational Regulations Version 2012-06-18 If a credit run is duplicated, PASA will not allow the processing of a debit run, to correct the duplication, as no mandate for authority to debit is held. Negotiation Where an incorrect transaction has been processed, the Principal and/or Participant(s) must deal directly with the applicable account holder to rectify the situation and SBSA is not party to this negotiation. 2.1.4.6 Unpaids, Returns and Redirected Transactions Transactions that are unable to be processed will be returned, together with the reason for nonpayment. REASON CODE ACTION REQUIRED Unpaid Reason Codes If an item is returned “Not Provided For” on two consecutive occasions, the Principal and/or Participant(s) must remove the debtor from the Service, unless the Principal and/or Participant(s) has received a new undertaking from the debtor to meet future payments. Certain types of accounts, such as Investment Accounts, book-based Savings Accounts, some Credit Cards, may not be debited. Not provided for (equivalent to R/D on a cheque) 02 Debits not allowed to this account 03 Payment stopped (by a/c holder) 04 A ‘Payment Stopped’ item indicates that the account holder has revoked the authority to debit his account. The Principal and/ or Participant(s) must ensure that no further transactions are made to this account and must contact the debtor directly for justification. Account frozen (as in divorce, etc) 06 The Principal and/or Participant(s) must contact the client to make alternative arrangements. Account in sequestration (private individual) 08 The Principal and/or Participant(s) must contact the client to make alternative arrangements. Account in liquidation (company) 10 The Principal and/or Participant(s) must contact the client to make alternative arrangements. Account closed forwarding details) 12 This reason is often given when accounts have been transferred to another bank. The Principal and/or Participant(s) must contact the client to obtain correct details. (with no The Principal and/or Participant(s) may not submit '‘Account Closed’ items again. The Principal and/or Participant(s) must contact the client to obtain correct details The Principal and/or Participant(s) must contact the manager at the Branch where the account is held. This indicates that funds are available in the account but are not yet cleared. The Principal and/or Participant(s) should resubmit the transaction allowing for sufficient clearing time. The Principal and/or Participant(s) must check their records to ensure that the account and branch numbers were correctly captured. If correct, they should contact their client’s bank branch and request assistance. If the account number is invalid then the Principal and/or Participant(s) must contact the client to make alternative arrangements. Account transferred (to another banking group) Account holder deceased 16 Account effects not cleared 22 No such account 26 User Withdrawal Request Code Recall/ Withdrawal 28 Indicates a transaction that the Principal and/or Participant(s) recalled. 30 32 The Principal and/or Participant(s) must check their records to determine whether the item was processed against the incorrect account. If necessary they must contact the debtor’s branch to confirm correct account number. 18 Disputed Transaction Codes No authority to debit/credit Debit in contravention of payer’s authority 12 Operational Regulations Authorisation cancelled Version 2012-06-18 34 If the account number is correct, the Principal and/or Participant(s) must contact the debtor directly as soon as possible. Previously stopped via stop payment advice Redirected Transactions Code Account transferred (within banking group) 36 The Principal and/or Participant(s) must check their records to determine whether the item was previously stopped. 14 An ‘Account transferred (within banking group)’ code indicates that the transaction has been processed and is returned with the re-directed account details. The Principal and/or Participant(s) must amend their records immediately as SBSA will only redirect items for a limited period, after which the entry will be returned as ‘Account Closed’ 2.1.4.7 Overnight processing If the Principal and/or Participant(s) have releasers loaded the following will apply: Uploading of files follows the same procedure as normal uploads. When the file is due to be released, (if the file is future dated) a message will be displayed requesting the Principal and/or Participant to choose normal SSVS processing or overnight processing. If the Principal and/or Participant(s) chooses SSVS processing, then normal SSVS rates will apply. If the Principal and/or Participant(s) chooses overnight processing, then the overnight charges will be applicable. If the Principal and/or Participant(s) have zero-release then the following will apply: The Principal and/or Participant(s) does not sign on to Domestic Banking to release, therefore no choice is made available. If the file is future dated, then overnight processing will automatically apply. In both cases, the action date will over-ride the processing selected. If the Principal and/or Participant(s) (with releasers) uploads a file with today's action date, normal SSVS processing has to occur, otherwise the file will not have a valid action date if held back to process overnight. On zero- release it depends on the criteria selected during set-up. If the Principal and/or Participant(s) have mentioned that they may not always meet the overnight deadlines, then we would include the option for normal SSVS processing. If this were the case, then a file with today's action date would process today and attract the normal SSVS charge rates. If the option for normal SSVS is not available for the Principal and/or Participant(s), then a file with today's action date will not process, because it will have an invalid action date at processing time. If the cut off time is missed, the system will change the date to the next business day. 2.1.4.8 Item Limits As part of the risk control measures within the National Payment System, the South African Reserve Bank (SARB) and the Payment Association of South Africa (PASA) have introduced the following allowable item limits: Debits: Maximum of R500 000-00 per transaction Credits: all transactions greater than R 5 million to be processed via Real Time Gross Settlement (RTGS) 2.1.5 Confidential Information The Principal and/or Participant agrees that confidential information in the Bank’s possession may be used and retained and or transmitted to third parties by the Bank in order for it to comply with local and international legislation and/or standards. Any disclosure by the Bank of such 13 Operational Regulations Version 2012-06-18 information to a third party if necessary for the purpose of compliance with the above shall not constitute a breach by the Bank of its obligations under these Services. The Principal and/or Participant agree that the Bank shall not be held liable for non-receipt of the funds by the recipient or the recipient's bank or agent where sovereign rules and regulations affect the transmission of the funds. 2.1.6 1. PASA/Bankserv Rules Forms of Authority The Principal and/or Participant must obtain a written authority from a debtor (or creditor) before transactions for that debtor (creditor) may be processed through the SBSA Business Online Service/EFT Service (refer appendix “A”). a) The Principal and/or Participant(s) may not, without the written consent of the debtor (or creditor), cede or assign any of its rights in terms of a written or recorded debit order or credit order held by the Principal and/or Participant(s), to any third party. In these instances a new mandate must to be obtained. b) A Principal and/or Participant(s) may use voice-recorded authorities/mandates but it should be noted that a voice-recorded mandate/authority be confirmed in writing within 21 days. Voice recorded mandate authorities are deemed to be a signed authority during the period prior to written confirmation. c) Upon request from the Sponsoring Bank users are required to produce to their sponsoring participant, at their own cost, an auditor’s certificate confirming the existence of the relative mandates. d) The written authority held by the Principal and/or Participant(s) must be approved by the debtor (or creditor) if any material alterations are made. e) The Principal and/or Participant(s), must in their own interests, retain an authority, whether in writing or recorded, after payments have ceased for a period of 5 years. If a debtor/creditor disputes a transaction it is the responsibility of the Principal and/or Participant(s) to provide proof of the mandate even though the payments have ceased, or be liable for the claim. f) On request users are required to produce, to SBSA, at their own cost, an auditor’s certificate confirming the existence of the relative mandates and also confirming that such mandates are in the form specified in these rules. g) If an item is returned “not provided for “ on 2 consecutive mandated action dates, the Principal and/or Participant(s) must remove the instruction for collection from the system unless the Principal and/or Participant(s) has received a new mandate from the payer to meet future payments h) If an account is closed or payment has been stopped the Principal and/or Participant(s) may not submit the instruction for collections a second time. i) In addition it must be noted that authorities are revoked under the following conditions: Stop payment; Direct instruction from the customer to the Principal and/or Participant; Terminated services; Changes to the conditions under which the mandate was given; If the debit order is unpaid on two consecutive occasions; Account closed. Accuracy of account and branch numbers 14 Operational Regulations Version 2012-06-18 The Principal and/or Participant(s) are expected to operate their SBSA Business Online service in an efficient manner so as to avoid causing unnecessary manual work. It is recommended that the Principal and/or Participant(s) ask their client for a cancelled cheque at the time that the client signs the authority. The Principal and/or Participant(s) can then capture the account and branch number from a reliable source. It is important that the Principal and/or Participant(s) recognise that SBSA does not validate account names against account numbers. The Principal and/or Participant(s) will be notified of invalid branch codes via the Interim Audit report, when they upload a file. Returns and unpaid items a) If for any reason a bank is unable to complete an electronic transaction, it will return details of the transaction, together with the reason for non-payment, to the branch where the relevant nominated account is held. b) Where a returned item is marked ‘Payment Stopped’ the authority under which it was processed is deemed to be revoked and the Principal and/or Participant(s) must ensure that no further transactions are processed under the authority concerned. (If the Principal and/or Participant(s) succeed in getting an agreement from the debtor to continue payments, the Principal and/or Participant(s) should impress on the debtor that he must cancel the stop payment instruction held by his bank. If this is not done the next debit order lodged will be returned again). The Principal and/or Participant(s) should not communicate with banks in connection with ‘Payment Stopped’ items, as the banks are not in a position to give reasons for their client’s instructions. c) When an item is returned unpaid, the entry cannot be re-deposited. The Principal and/or Participant(s) must either attempt to get payment outside the system or re-submit the item with his next submission. d) The Principal and/or Participant(s) may not adjust the value of a transaction in order to recover arrears. Separate debit orders must be submitted for the current payment and for each arrear payment. e) If an item is returned ‘Not Provided For’ on two consecutive occasions, the Principal and/or Participant(s) must remove the debtor from the system, unless the Principal and/or Participant(s) have received a new undertaking from the debtor to meet further payments. f) In accordance with PASA regulations, if the Principal and/or the Participant exceed 10% unpaid entries of their debit order run for a particular month, SBSA shall revoke the access to the debit order facility immediately. g) Any return or unpaid must be accompanied by the original information supplied by the homing bank as well as reason for the rejection, except where the transaction has been redirected to another bank account. Disputed Authority A client’s authority shall only be regarded as being in dispute if he declares in writing that: he did not authorise the drawing in question; the drawing is in contravention of his authority; or he has instructed the User to cancel his authority; stop payment of the instruction has been issued. It must be emphasised that SBSA cannot become involved in a dispute between its client and the Principal and/or Participant(s). 15 Operational Regulations Version 2012-06-18 If a homing bank receives a complaint from a client about an allegedly unauthorised debit to the client’s homing account, the homing bank is entitled to act as follows: a) Complaint lodged within 40 days after action date Reverse the debit immediately. b) Complaint lodged later than 40 days after action date The homing bank branch shall give the User’s sponsoring bank (Liaison Department) 30 day’s registered written notice to that effect. If the Principal and/or Participant(s) fail within such period to prove to the satisfaction of the homing bank the validity of the relevant authorisation, then SBSA shall immediately reverse the debit. In the event of such entry being reversed by a homing bank other than in compliance with the aforesaid notice provisions, then the homing bank shall forthwith reinstate such debit without prejudice to the homing bank to revert to the above procedure on the prescribed basis. Reversal of Incorrect Entries The Principal and/or Participant(s) may not generate debit transactions to reverse or correct a credit transaction, which has been incorrectly processed, or vice versa. Kindly note that a credit transaction may be disputed. Combining of Items The Principal and/or Participant(s) must not combine credits, as beneficiaries are unable to identify these transactions. If a customer has two or more accounts or policies etc, the Principal and/or Participant(s) may combine debit items into a single transaction provided: the customer agrees to the combining of transactions; the combined value must not exceed the limit of R500 000; in the case of premium collections, ceded policies may be combined with other policies, provided the combined entry still indicates the cession by means of an asterisk (*). 16 Operational Regulations Version 2012-06-18 2.2 REAL TIME CLEARING - RTC 2.2.1 Introduction Real Time Clearing will not automatically be given to all clients and it must be applied for by completing the necessary take-on-documentation. Application to use RTC must be made to the Principal’s consultant and is subject to prior credit approval. In addition to this the Principal and/or Participant must ensure that all operators that have been given access to release payments via RTC are 2 Factor Authentication enabled prior to activation of this service (please refer to clause 4 for further information in respect hereto). 2.2.2 Overview RTC makes provision for: End-to-end processing of an electronic payment in real time; Funds are made available in real time to beneficiaries at participating banks; Processing payments in real time outside of regular business hours; An alternative to COD payments to suppliers. 2.2.3. Processing Payments can be created on the Business Online system via one of the following sub-systems: SSVS – Online payments SSVS – Payment imports SDPS – Payment imports SSVS – Host to Host payments SWIFTNET (SSVS Host to Host) payments A Customer will use the existing “RTGS” indicator on the Business Online application to specify which of the transactions need to be processed via “Real Time Clearing”. RTC payments can only be made to RTC participating banks. If a bank is not a participant bank the transaction will be routed via RTGS. If the bank is not an NPS participant bank the system will display an error message to this effect in the status column. 2.2.3.1 Processing options and Audit reports All existing process flows and rules for SSVS, SDPS and Host to Host shall apply to this facility, i.e. segregation of duties, limits, printing of interim and final audit reports. For further information in respect hereto please refer to the relevant section above. OPTION 1: CREATE / MAINTAIN SSVS PAYMENTS The screen can be accessed via the Domestic Banking / Funds Transfers / Payments / All Payments menu options. The following actions can be performed on this screen: o Display o Create o Modify OPTION 2: MAINTAIN SDPS PAYMENTS The screen can be accessed via the Domestic Banking / Funds Transfers/ Payments / All Payments menu options. The following actions can be performed on this screen: 17 Operational Regulations o Display o Modify Version 2012-06-18 AUDIT REPORTS Interim Audit Reports will be displayed upon auditing of a batch of transactions, after it has been successfully saved. Final Audit Reports will be displayed only once the transaction has been successfully processed, and has reached a state of “Final Audit to be Downloaded”. 2.2.3.2 Unpaids and Recalls There will be NO unpaids, recalls or reversals resulting from these transactions. Real Time payments are irrevocable and cannot be refunded by the SBSA or the beneficiary’s bank in any way. It is for this reason that RTC payments must be made from cleared funds and/or available overdraft limits on the contra account. 2.2.3.3 Disputes It must be emphasised that SBSA cannot become involved in a dispute between its client and the Principal and/or Participant(s). If a SBSA receives a complaint from the Principal about an allegedly unauthorised payment in writing, SBSA shall follow internal customer complaint procedures in order to assist the Principal, however SBSA do not guarantee the successful return of funds. Similarly where an account has been paid erroneously, the recipient may raise a dispute of the incorrect payment and SBSA shall follow internal measure to return the said funds to the originator. 2.2.4. CUT-OFF TIMES ARE AS FOLLOWS Please note: The Principal and/or Participant(s) are responsible for ensuring that transaction batches are released and successfully processed prior to the specified Cut-Off Times for making payments, collections and transfers. The RTC functionality will only be available on the Business Online channel between 00h00:01am and 19h00. However these times will be parameter driven, and can therefore be adjusted accordingly. Payments are submitted on the day of action date according to the following time frames, with associated limits (which are discussed under the limits sub-heading). . Timeframe Monday – Friday 00h00:01 – 19h00:00 Saturday 00h00:01 – 19h00:00 Sunday & Public Holidays Unavailable If a payment is made after the 19h00 cut-off time, the transaction will be routed via RTGS. If transaction fails to process via RTGS an error message will appear which states the following: “RTGS payment processing cut-off time has been exceeded. Unable to process payment.” 18 Operational Regulations Version 2012-06-18 2.2.5. LIMITS The client’s existing subsystem limits will apply. However the following maximum limits will apply to transactions processed via RTC: Monday – Friday Saturday Sunday & Public Holidays Timeframe 00h00:01 – 16h00 16h00:01 – 19h00 19h00:01 – 00h00 00h00:01 – 09h15 09h15:01 – 19h00 19h00:01 – 00h00 All Day Limit R5,000,000.00 R 250,000.00 Unavailable R5,000,000.00 R 250,000.00 Unavailable Unavailable 2.2.6 PASA/Bankserve Rules: SBSA shall prove the Principal/Participant with a tracking number when the RTC payment is initiated. Verification of data The following validation rules are performed by SBSA on Branch and Account numbers for Bank-stored and Ad hoc creditor/debtor details: 1. When the Creditor/Debtor Account numbers of an SBSA account are captured, the account number is checked to see if it is a valid account number, at any SBSA branch. 2. When the Creditor/Debtor Account numbers of a non-SBSA Bank account are captured, the normal Bankserv validations are performed to verify that the branch numbers and account numbers are valid according to Bankserv rules. Accuracy of account and branch numbers The Principal and/or Participant(s) are expected to operate their RTC service in an efficient manner so as to avoid causing unnecessary manual work. It is recommended that the Principal and/or Participant(s) ask their client for a cancelled cheque at the time that the client signs the authority. The Principal and/or Participant(s) can then capture the account and branch number from a reliable source. All data provided to SBSA must be valid and correct. Incorrect data may result in rejections, which could delay the completion of the transaction. Payments made to incorrect accounts as a result of incorrect data can only be recovered by negotiation (or legal process) with the payee. The Principal and/or Participant(s) will be notified of invalid branch codes via the Interim Audit report, when they upload a file. Reversal of Incorrect Entries The Principal and/or Participant(s) may not generate debit transactions to reverse or correct a RTC payment instruction, which has been incorrectly processed, or vice versa. Splitting of Items The Principal and/or Participant(s) must not split transaction as this practice is prohibited by the Payment Association of South Africa, as beneficiaries are unable to identify these transactions. Fraud 19 Operational Regulations Version 2012-06-18 SBSA reserves the right to reverse any transaction made in lieu of fraud on receipt of a court order reflecting the same. Note: When making payments via RTC it is essential that the Principal and/or Participant(s) familiarize them self with the cost thereof. Transactions processed via RTC will be priced less than transactions that are processed via RTGS, if the RTGS transactions are less than R5 million. RTGS will apply in the following circumstances: payment to non-participating banks; payments made by clients that do not sign-up to use RTC; payment in excess of R5 million. SBSA shall not be liable for the increased cost, associated with RTGS payment transactions as indicated above, the Principal and/or Participant(s) may incur. 2.2.7. Disclaimer SBSA highly recommends that the Principal and/or Participant elects to make use of the segregation of duties and respective transactional limits and access level facilities provided, as a preventative measure in managing risk within the Principal and/or Participant 's environment. However should the Principal and/or Participant choose not to do so SBSA takes no responsibility and shall not be liable under the contract or otherwise for any direct, indirect special or consequential loss or damages (including without limitation loss of contract, loss of use, loss of profit or other economic loss) which is caused by or arises out of: any loss arising from fraud; misappropriation of funds; or unauthorised payments; or incorrect payments of funds. Unless so caused by the Bank’s gross negligence or wilful misconduct. 2.3 2.3.1 ELECTRONIC FUNDS TRANSFER SERVICE – EFTS The service to be provided by SBSA is the processing of an Electronic Payment and/or a complete Cheque Writing Service from input data supplied to SBSA by the Principal and/or Participant(s), and shall include any of the services listed: The direct crediting of SBSA accounts of the Principal and/or Participant(s) employees and creditors (referred to as Customers) who maintain accounts with selected commercial bank branches; The Two Day service allows the direct debiting of the bank accounts of the Principal and/or Participant(s) debtors (referred to as Customers) who maintain accounts with selected commercial bank branches. If this service is used it will be the responsibility of the Principal and/or Participant(s) to obtain the necessary written authority from his debtors (referred to as Customers), for the latter’s nominated accounts to be debited; The Two Day service allows for the printing of cheques to specified beneficiaries either drawn on SBSA’s Imprest Account for distribution by the Principal and/or Participant(s). 2.3.2 The Service is not automatically given to clients and it must be applied for. Application to use the EFT service must be made to the Principal and/or Participant(s) sales consultant. 20 Operational Regulations Version 2012-06-18 If the application is approved, the user shall be required to complete the documentation and thereafter shall be given a Banserv (ACB) code. 2.3.3 Prior to the service becoming operational the Principal and/or Participant(s) shall submit test data to SBSA to enable SBSA to test the data and to supply the service. Should the Principal and/or Participant(s) make any amendments to their system, new test data must be submitted to SBSA. The onus rests on the Principal and/or Participant(s) to ensure that the test option is selected when submitting data to SBSA for the first time. 2.3.4 The Principal and/or Participant(s) hereby warrants that every customer on whose account a debit or credit is drawn, will have signed an authority for the Customer’s bank/building society to debit or credit such Customer’s bank accounts and warrants further that the amounts and/or account numbers on entries submitted under such authority are correct. 2.3.5 The Principal and/or Participant(s) indemnifies SBSA against any claim of whatsoever nature which may be made against SBSA and arising from any losses, direct or consequential damages, liabilities, actions, claims, suits, costs, fees and demands which they may suffer, incur or which may be brought against them by reason of or in any way arising out of the payment of any debit or credit originated by the User, or the failure to pay any such transactions. 2.3.6 The Principal and/or Participant(s) undertake to refund to SBSA or Customer’s bank, as the case may be, any and all amounts paid to the Principal and/or Participant(s) or the Customer in respect of any such debits or credits if the Customer at any subsequent time disputes the validity of the transaction, provided that SBSA or the Customer’s bank (having consented hereto) has given the Principal and/or Participant(s) notice of its intention to reverse the debit or credit concerned, or it has within 40 days after the action date reversed such debit or credit. 2.3.7 Any property provided by SBSA for use by the Principal and/or Participant(s) shall remain the property of SBSA and the Principal and/or Participant(s) agree to return such property to SBSA within 48 hours of termination of this service. The Principal and/or Participant(s) shall be responsible to SBSA for any damage to or loss of such property whilst in their possession. 2.3.8 The Bank shall not be liable to the Principal and/or Participant(s) for any damage to any media unless such damage was caused by the negligence of SBSA. 2.3.9 Where payments are to be effected by SBSA, the Principal and/or Participant(s) authorises SBSA to debit a nominated account at SBSA with the amount of payments. Where the Principal and/or Participant(s) does not have an account at SBSA, the Principal and/or Participant shall submit with the input data, a bank guaranteed cheque in favour of SBSA to the value of the payments unless other arrangements have been agreed upon between SBSA and the Principal and/or Participant(s). 2.3.10 Should the Principal and/or Participant(s) require SBSA to debit any other bank accounts SBSA shall have the right to request the Principal and/or Participant(s) to provide a fidelity bond in favour of SBSA at the cost and expense of the Principal and/or Participant(s). 2.3.11 The onus shall be on the Principal and/or Participant(s) to verify the correctness of the output data supplied and the information appearing on all reports processed and supplied by SBSA. Details of any errors detected shall be communicated to SBSA in writing as soon as possible and, in any event by, not later than 09h00 on the day prior to the action date/pay date. Should SBSA not receive advice of any errors all the information shall be deemed to have been correctly processed. 2.3.12 In the case of an electronic transfer, where an account number or a bank branch number is invalid or if insufficient lead time is allowed, the service will change to effect payment by cheque for the Two Day Service. This will also apply to the One Day Service where the 21 Operational Regulations Version 2012-06-18 User has requested the issuing of cheques. Where payment is to be effected by cheque, such cheques are to be collected by the Principal and/or Participant(s). The transaction will be rejected on Same Day Pay Service as well as when the format of the data is incorrect. 2.3.13 Should transfer from accounts at any other banks and be unpaid, for any reason whatsoever, SBSA will debit the Principal and/or Participant(s) bank account under advice with the value thereof. 2.3.14 The Principal and/or Participant(s) must be aware that should the service not be used for a period of 6 months and longer, the User Code shall automatically be terminated and deleted from SBSA’s records. Should the aforementioned take place it would be necessary to make a new application. 2.3.15 The Principal and/or Participant’s will be advised by means of a "message alert" of any new developments or changes that affect the operation of the EFT service. It is important that the Principal and/or Participant(s) address these changes timeously to avoid rejections. Where the Customers change their banking details, the Customer needs to advise the Principal and/or Participants in order for them to update their records. 22 Operational Regulations Version 2012-06-18 2.4 BULK ELECTRONIC FUNDS TRANSFER SERVICE – BEFTS 2.4.1 Overview BEFT is the Bulk Electronic Funds Transfer service which was developed for large volumes clients on Host to Host. This service facilitates the processing of large batch files transmitted from the clients HOST environment directly into the Domestic Banking backend. The service is available for customers who process in excess of 30 000 transaction a month, however due to demand it is also available online on Domestic Banking for transactions less than 8000 per run. Files may be transmitted anytime during the day so long as they are submitted before customer cut-off time if they require to be processed in a batch that day. 2.4.2 Service Options: The following services are offered via BEFT ONE DAY: processing of payments only, for value and sight allocated on the morning of the first business day following the date of submission. TWO DAY: processing of payments, for value and sight allocated on the morning of the third business day following the date of submission. Processing of collections on the evening of the second business day following the date of submission. 2.4.3 Segregation of Duties In order to capture or effect a Payment/ Collection/ Transfer, a number of actions have to be performed: Process Payments/ Collections/ Transfers Actions required Create/ Import Audit Verify / Authorise change Release Final Audit For an explanation of each of the above actions reference can be made reference table contained in paragraph 2.1.2.2 on page 5. The Segregation of Duties is a key component to managing the Service and associated risks. Each action in the process should be allocated to different people. The greater the segregation of duties the greater the control. The Principal and/ or Participant(s) can select any combination of duties per person. A typical example of the allocation of actions per operator is: Clerk- Create/Import and Audit Supervisor- Verify and Authorise Change Manager- Release A facility of release only is available. This allows a single operator to create and release a batch, without following the workflow of ‘auditing’ and ‘verifying’. Extreme caution is advised when requesting this option as it allows any operator who has the ‘create’ and ‘release’ access levels the ability to effect payments without forcing the normal manual workflow. Please note: the final audit report must still be printed. 2.4.4 Straight Through Processing The law governing electronic payments recognises account numbers as being the basis for applying the credit or debit. Unlike cheque law, any name or commentary attached to an electronic payment is completely ignored. 23 Operational Regulations Version 2012-06-18 It is the responsibility of the Principal and/or Participant/s to ensure that the account and branch number details are correct. Furthermore, it is important that the Principal and/or Participants recognise that SBSA does not validate account names against account numbers, neither does SBSA nor the banking industry check that account numbers are consistent with branch numbers. If the Principal and/or Participants use the Ad hoc Creditor/Debtor details option, they must ensure that they have implemented the necessary internal controls to verify these details and reduce all associated risk. 2.4.5 Data Accuracy All data provided to SBSA must be valid and correct. Incorrect data may result in rejections, which could delay the completion of the transaction. Payments made to incorrect accounts as a result of incorrect data can only be recovered by negotiation (or legal process) with the payee. Please ensure you understand the points made in the paragraph above concerning Straight Through Processing. The Principal and/or Participant(s) must, in conjunction with SBSA, test the file import service with data upon first use of the system. 2.4.6 Cut-Off Times Please note: The Principal and/or Participant(s) are responsible for ensuring that transaction batches are released and successfully processed prior to the specified Cut-Off Times for making payments, collections and transfers. PAYMENTS Cut-Off Time Example Banks Affected Week Day Saturday Transacti on Date Value Date/ Sight Date Standard Action Bank Date Agent Banks BEFT – One Day Service All Banks 16h00 09h30 Monday Tuesday Tuesday Tuesday BEFT – Two Day Service All Banks 14h30 Service not available (see note below). Monday Wednesday Wednesday Wednesday Transaction BEFTS – One Day Pay Service The system will only accept the action dates if the following conditions are correct: The action date is a valid business day for credit payments. The lead days are the valid number of business days for the action date. The One Day Pay Service allows for a Saturday to be an action date. The One Day Pay Service allow Saturday as a valid business day i.e. if your action date is a Monday you can release on a Saturday. BEFTS – Two Day Service The system will only accept the action dates if the following conditions are correct: Action date is a valid business day for credits and debits. The lead days are the valid number of business days for the action date. Future date can extend to 10 days in the future. Action date cannot be a Saturday or Sunday or a public holiday. The two lead day required cannot include a Saturday and Sunday or public holiday. 24 Operational Regulations Version 2012-06-18 COLLECTIONS Cut-Off Time Example Banks Affected Week Day Saturday Transaction Date BEFT – Two All Banks Day Service 14h30 Service Monday not available (see note below). Transaction Type Value Date Sight Date Standar Agent d Bank Banks Wednesday Wednes day evening Wednesday evening BEFTS – Two Day Service The system will only accept the action dates if the following conditions are correct: Action date is a valid business day. The lead days are the valid number of business days for the action date. Action date cannot be a Saturday or Sunday or a public holiday. The two lead day required cannot include a Saturday and Sunday or public holiday. Sight Date: The date on which the funds will be available in the account and can be viewed. Value Date: The date on which the account will reflect that the funds have been deposited in the account, but are not yet available for withdrawal. Missed Cut-off Times The Principal and/or Participant(s) must make every effort to meet the relevant Cut-Off Times. The system will reject the batch with the error “lead time invalid”. This is because the system validates action date on the basis of “valid lead time” to action date, and any batch submitted after cut off time incurs an additional lead day to be added to the validation routine. Hence the submitted action date is one lead day short. The Operator must either amend the action date, or submit the batch through a different service. 2.4.7 Recalls A recall is a request to SBSA to stop a transaction/ batch from being processed. Recalls can be performed under the following conditions: They only apply to Dated Two Payments/ Collections They must be communicated, in writing, to SBSA no later than 09h00 on the business day prior to the Action Date They are not guaranteed by SBSA. SBSA will endeavour to carry out the instruction, but is not liable if the request is unsuccessful. 2.4.8 Unpaid, Returns and Redirected Transactions Refer to the table on pg 11 for a detailed explanation in respect to the terms and conditions for unpaid, returns and redirected transactions. 2.4.9 Item Limits As part of the risk control measures within the National Payment System, the South African Reserve Bank (SARB) and the Payment Association of South Africa (PASA) have introduced the following allowable item limits: Debits: Maximum of R500 000-00 per transaction Credits: all transactions greater than R 5 million to be processed via No Real Time Gross Settlement (RTGS) transactions are allowed. 2.4.10 PASA/Bankserv Rules Refer to pg 11 for a detailed explanation for the Bankserv rules and regulations governing the use of the Bulk Electronic Funds Transfer service. 25 Operational Regulations 2.5 2.5.1 Version 2012-06-18 ACCOUNT VERIFICATION SERVICE – AVS Overview AVS enables a Business Online customer to verify account information of their beneficiaries prior to making payments or collecting debits. The Service is not automatically given to clients and it must be applied for. Application to use the AV Service must be made to the Principal and/or Participant(s) sales consultant. If the application is approved, the user shall be required to complete the documentation and thereafter shall be given an AVS user code. 2.5.2 Availability Times The service will be available to Customers who have registered for the service 7 days a week. Processing will operate from 03:00 to 16:00. Please note: The Principal and/or Participant(s) are responsible for ensuring that verification batches are released and successfully processed prior to the specified Availability Times so as to ensure Cut off times for making payments, collections and transfers will not be missed. 2.5.3 Processing All verification batches to SBSA for the AVS facility will be via electronic transmission using Host to Host or via Domestic Banking. Standard Bank verification will be processed in real time, whereas Agent Bank verification data will be made available to the Customer via the Domestic Banking as per agreed standards among the participating banks (approximately 1 hour of submitting the file to the SBSA). Important: The batch file size will be limited to 50,000 records on host to host and 10 000 via Domestic Banking system; For each file received, the Bank will perform the following validations*: Receiving Bank; Receiving bank branch code; Receiving bank account number; account holder’s name;(Initials and surname); ID number/Company registration number; account status (open or closed); length of time the account has been open; whether the account accepts debits or credits * Verification fields may differ from bank to bank. Note: Initially the system will not cater for the verification of foreign nationals so catering for passport numbers is not required 2.5.4 Data Accuracy The Customer is responsible for the accuracy of the files they submitted via the AVS system. Incorrect data may result in rejections, which could delay the completion of the transaction. Payments made to incorrect accounts as a result of incorrect data can only be recovered by negotiation (or legal process) with the payee. 26 Operational Regulations Version 2012-06-18 Note: Based on the information received in terms of the above verification, the Principal and/or Participant should determine whether they wish to proceed to complete the transaction or amend the conflicting information accordingly. SBSA will not advise on this decision and shall not liable under the contract or otherwise for any direct, indirect special or consequential loss or damages (including without limitation loss of contract, loss of use, loss of profit or other economic loss) as a result of the Principal and/or Participants decision. 27 Operational Regulations Version 2012-06-18 2.6 NON AUTHENTICATED EARLY DEBIT ORDER SYSTEM 2.6.1 Overview The service is not automatically given to clients and it must be applied for. Application to use the NAEDO service must be made to the Principal and/or Participant(s) sales consultant. If the application is approved, the user shall be required to complete the documentation and thereafter shall be given a NAEDO user code. Furthermore the Principal and/or Participant must be registered with an authority that is affiliated with the Payment System Stakeholder Forum and provide proof thereof. If the authority is not affiliated with the Payment System Stakeholder Forum then Principal and/or Participant will not be permitted to process NAEDO instruction. NAEDOS will only cater for South African transactions; no Common Monetary Area transactions will be included in the NAEDOS service (Namibia included). 2.6.2 Unpaids, Disputes and Recalls Unpaids There will be NO unpaids resulting from these transactions. There will however be recalls and disputes. SBSA will also return an audit to the customer reflecting the successful transactions. Where transactions have been return as “not provided for” may be re-presented by SBSA where the Principal and/or Participant(s) have select credit tracking. Disputes A client’s authority shall only be regarded as being in dispute if he declares in writing that: he did not authorise the drawing in question; the drawing is in contravention of his authority; or he has instructed the to cancel his authority; Stop payment instructs has been issued. It must be emphasised that SBSA cannot become involved in a dispute between its client and the Principal and/or Participant(s). If a homing bank receives a complaint from a client about an allegedly unauthorised debit to the client’s homing account, the homing bank is entitled to act as follows: c) Complaint lodged within 40 days after action date Reverse the debit immediately. d) Complaint lodged later than 40 days after action date The accountholder’s bank shall give SBSA (Liaison Department) 30 day’s written notice to that effect. If the Principal and/or Participant(s) fail within such period to prove to the satisfaction of the accountholder’s bank the validity of the relevant authorisation, then SBSA shall immediately reverse the debit. 28 Operational Regulations Version 2012-06-18 In the event of such entry being reversed by the accountholder’s bank other than in compliance with the aforesaid notice provisions, then the accountholder’s bank shall forthwith reinstate such debit without prejudice to SBSA to revert to the above procedure on the prescribed basis. Recalls A Recall Request file will be created by the customer and submitted to the Bank before 16h00. 2.6.3 CUT-OFF TIMES ARE AS FOLLOWS Please note: The Principal and/or Participant(s) are responsible for ensuring that transaction batches are released and successfully processed prior to the specified Cut-Off Times for collections. NAEDO file is submitted one day before action date. Naedo Request Files: Monday to Friday - 16h00 Saturday - 09h45 Sunday - 09h45 Naedo Recall Request Files: Monday to Friday - 16h00 Saturday - 07h45 Sunday - 07h45 2.6.4 CREDIT TRACKING The service also provides for unsuccessful transactions. The periods available for credit tracking are: No tracking – no tracking will be performed and transactions will be processed once per day, 1 day tracking, 2 day tracking 3 day tracking, 5 day tracking, 6 day tracking, 7 day tracking, 8 day tracking, 9 day tracking, 10 day tracking, 14 day tracking 21 day tracking, or 32 day tracking. Minimal credit tracking – payments are processed minimum of twice per day upon presentment for the number of days listed above. Full credit tracking – payments are re-presented throughout the day for processing in the event of a credit being received as per the number of days listed above. Save for credit tracking arrangements, the same payment instruction may not be presented for collection more than once per day, and can only be presented on the day as indicated in the mandate or subsequently thereafter as per the mandate as indicated in clause 2.6.4. 29 Operational Regulations Version 2012-06-18 No more than two Non Authenticated Early Debit Order payment instructions per contract may be presented within a payment cycle 2.6.5 LIMITS The following limits are required to be in place for debit transmissions: 1. Item limit - per transaction (Maximum R 5000.00); 2. Daily limit; 3. Monthly limit. 2.6.6 FORMS OF AUTHORITY The Principal and/or Participant must obtain a written authority from a debtor, before transactions for that debtor may be processed through the SBSA Business Online Service (refer appendix “B”), as detailed in clause 2.1.12. The Principal and/or Participant(s) must ensure that all NAEDO transactions are uniquely identifiable by the agreement reference and payment cycle date. Before a user can migrate a debit order instruction form a non-preferential Debit order to NAEDO they must obtain a new mandate from their debtor. 2.6.7 PASA/Bankserv Rules a) The Principal and/or Participant(s) may only process a debit instruction where a written authority is held, the written authority from the debtor must have been obtained more than 3 days before the first debit instruction of the mandate is issued via the NAEDO service. The Principal and/or Participant(s) must provide a copy of the mandate to the debtor (or creditor) for future reference and/or queries. b) A Principal and/or Participant(s) may use voice-recorded authorities/mandates but it should be noted that a voice-recorded mandate/authority be confirmed in writing within 21 days. Voice recorded mandate authorities are deemed to be a signed authority during the period prior to written confirmation. c) The written authority held by the Principal and/or Participant(s) must be approved by the debtor (or creditor) if any material alterations are made (e.g. amounts, account number etc), the Principal and/or Participant(s) must not process transactions which have been amended without the prior approval as indicated herein. d) The Principal and/or Participant(s) may not process duplicate amounts for purposes of collecting arrear transactions. e) The Principal and/or Participant(s) must in their own interests, retain an authority, whether in writing or recorded, after payments have ceased for a period of 5 years. If a debtor/creditor disputes a transaction it is the responsibility of the Principal and/or Participant(s) to provide proof of the mandate even though the payments have ceased, or be liable for the claim. f) On request the Principal and/or Participant(s) are required to produce, to SBSA, at their own cost, an auditor’s certificate confirming the existence of the relative mandates and also 30 Operational Regulations Version 2012-06-18 confirming that such mandates are in the form specified in these rules. Notwithstanding this, the Principal and/or Participant(s) must allow SBSA to audit their records. g) The Principal and/or Participant(s) may not, without the written consent of the debtor (or creditor), cede or assign any of its rights in terms of a written or recorded debit order or credit order held by the Principal and/or Participant(s), to any third party. In these instances a new mandate must to be obtained. h) The Principal and/or Participant(s) may not present more than 2 instructions for any single debit instruction for the same mandate in a payment cycle. Including an instruction via credit tracking. i) The Principal or Participant(s) must cancel all payment instruction for any one of the written authorities where a successful debit instruction has not been process for a consecutive period of 4 months or not presented for 4 months at all. j) The Principal or Participant(s) must cancel the future payment instructions if the written authority has been cancelled. k) The Principal or Participant(s) must allow debtor to do stop payments against the service. l) In addition it must be noted that authorities are revoked under the following conditions: The debtor may approach the Principal or Participant(s) before the debit instruction is processed, to discuss the stopping thereof and instruct the Principal or Participant(s) to cancel the instruction, who must acknowledge receipt thereof. If the Principal or Participant(s) continues to process the debit instruction the debtor can approach their bank for assistance. Frequent contravention of processing a debit instruction in light of a stop payment being placed on record, or the introduction of risk into the system, will result in suspension of the use service and shall be reported to regulatory bodies, which have the right to levy a penalty. 31 Operational Regulations Version 2012-06-18 2.7 TRANSACT ALERT 2.7.1 Introduction Transact Alert will not automatically be given to all clients and it must be applied for by completing the necessary take-on-documentation. Application to use Transact Alert must be made to the Principal’s consultant. 2.7.2 Overview Transact Alert makes provision for: Notification of transactions debited or credited to the participating bank accounts; Notification of amendments to the Principal and/or Participants Business Online Transact Alert profile; Notifications can be sent via multiple channels including SMS, e-mail, facsimile, or system to system channels such as Host to Host. 2.7.3 Alert type Alerts can be created on the Business Online system to accommodate for the following: Delivery of alerts via SMS, e-mail, facsimile, or files in an XML, fixed width or CSV format; Debits, Credits and Inter account transfers; All or selected types of transaction codes appearing on a bank statement; Date range; All amounts or specified amounts; Administrative alerts in respect to profile updates, password resets, Operator Logon, beneficiary release and maintenance and adhoc payment release; and Time the alert is to be received by the Principal and/or Participant where the alert is to be sent via SMS. . 2.7.4 Operator allocation and Alert History All accounts loaded to the Business Online profile can be nominated for the service and be linked to existing operators or non-existing operators. In addition operators previously registered for the service can be modified or deregistered. Furthermore, previous alerts sent can be viewed via the View Alerts function for a historical period of 7 days 2.7.5 CREATE/MODIFY TRANSACT ALERT All amendments the profile must be in writing to the Bank signed by the Designated Person. 2.7.6 Accuracy of value transactions All information provided in terms of notification of transactions debited or credited to the participating bank accounts is provided on an “as is” and “as available” basis. While every effort is made to ensure that the content of the notification is accurate and complete, the information provided will be dependent on the information provided by the source system or customer. Disputes It must be emphasised that SBSA cannot become involved in a dispute between its client and the Principal and/or Participant(s). 32 Operational Regulations Version 2012-06-18 If SBSA receives a complaint from the Principal about an allegedly unauthorised payment in writing, SBSA shall follow the internal customer complaint procedures in order to assist the Principal, however SBSA do not guarantee the successful return of funds. Similarly where an account has been paid erroneously, the recipient may raise a dispute of the incorrect payment and SBSA shall follow internal measures to return the said funds to the originator. CONFIDENTIALITY Please note: The Principal and/or Participant(s) are responsible for ensuring that all internal processes are adhered to in order to ensure that alerts are assigned to the correct individuals and all confidential information to the Principal remains confidential. Disclaimer The Bank highly recommends that the Principal and/or Participant elects to make use of the segregation of duties as a preventative measure in managing risk within the Principal and/or Participant 's environment. However should the Principal and/or Participant choose not to do so the Bank takes no responsibility and shall not be liable under the contract or otherwise for any direct, indirect special or consequential loss or damages (including without limitation loss of contract, loss of use, loss of profit or other economic loss) which is caused by or arises out of: disclosure of confidential information; any loss arising from fraud; misappropriation of funds; unauthorised payments; or incorrect payments of funds; unless so caused by the Bank’s gross negligence or wilful misconduct. 33 Operational Regulations Version 2012-06-18 2.8 THIRD PARTY FUND ADMINISTRATOR 2.8.1 Introduction Third Party Fund Administration (TPFA) is a third party fund administration product offered by SBSA to the agent (for example accountants, attorneys and financial intermediaries) acting as an intermediary. In terms of the product the agent invests funds on behalf of a third party (‘investor principal”) based on a written mandate. The product allows for the following transactions: electronically transferring funds; inter-account transfers; origination of the investor principal accounts; termination of the investor principal accounts; and TPFA property guarantees. The TPFA Guarantees product allows the agent to set up electronic local property guarantees on behalf of the investor principal. The agent can, via the online product, create guarantees and instruct SBSA to issue, pay or cancel guarantees. 2.8.2 Description TPFA is a service used by third party fund administrators, for example accountants, attorneys and financial intermediaries to administer their customers’ funds. 2.8.3 Overview opening and closing of investor principal’s; electronic funds transfer transactions; viewing of balances and statements; inter-account transfers; availability of month-end statements; and local property guarantees on behalf of investor principals. 2.8.4 Segregation of Duties In order to open, transfer and close accounts, a number of actions have to be performed: Process Actions required Account opening Create/Open Account closure Close Transfers Create/Open Disclaimer confirmation Delete Audit Verify/Authorise change Release Release/Release only An explanation of each action follows: Action Explanation Create/Open Operator captures and validates new account Disclaimer Confirmation of holding a mandate on behalf of an entity to open a new sub account for them confirmation Close Selecting an account to be closed on the close account screen. The account moves to the closing instruction screen to be released. 34 Operational Regulations Version 2012-06-18 Delete an account on the closing instruction screen. The account moves Delete back to the close account screen. Audit Operator prints audit report, which partially ‘locks’ transactional batches, preventing modifications or deletions of transactions. The printing of an Interim Audit Report is optional, but highly recommended. Modifications can be made by allowing an ‘authorised change’. Verify Operators ‘lock’ transactional batches, preventing modifications or deletions unless authorised to do so. Operators ‘unlock’ transactional batches, permitting modifications or deletions to an audited or verified transactional batch. Operator authorises SBSA to process a transactional batch. Release levels and limits govern which, and how many, operators are required to send a transactional batch for processing to SBSA. Authorise change Release By releasing, each Operator confirms that the details of the transactional batch have been personally checked and are correct. Release only The release level can be seen as an electronic signature and should be allocated appropriately. The release only option is available to single Operator users, whereby the create and release is required without having to audit and verify. The following actions are involved with the TPFA guarantees product: Process Actions required Guarantee Creation Request Guarantee Pay Guarantee Draft Modify Approve Request Approve Request Cancel Guarantee Guarantee Reports Approve Request Print Guarantee Delete Print Summary Action Explanation Draft To create property guarantees, the Operator must draft a guarantee. Operator can capture property guarantee details within the supplied required and optional fields. Captured details of property guarantees in ‘draft’ and ‘guarantee request approved’ status may be modified. Property guarantees in other statuses may not be modified. Property guarantees in ‘draft’ and ‘guarantee request approved’ status may be deleted off the system by the Operator. Property guarantees in other statuses may not be deleted. Once property guarantee details have been captured and funds required for the property guarantee is available in the investor principal’s underlying TPFA account, the property guarantee may be issued by SBSA. Once issued, the property guarantee may be instructed to be paid or cancelled. Property guarantees that have been issued may not be modified. Manual intervention to modify Property guarantees is also not allowed. Modify Delete Issue Pay Instructing SBSA to pay the Property guarantee to the beneficiary captured on the Property guarantee. Property guarantees have to be issued before payment can be made. Payment should only take place when transfer of property has 35 Operational Regulations Version 2012-06-18 taken place and confirmed with written notice by the designated transfer attorney. The transfer attorney may or may not be the same as the issuing attorney. Cancel Approve Release Print Guarantee Print Summary SBSA may conduct audits to ensure written notices have been received by the Operator (or agent) who releases Property guarantees to SBSA for payment. Issued Property guarantees may be cancelled. Property guarantees may only be cancelled upon written notice by the beneficiary or transfer attorney. The transfer attorney may or may not be the same as the beneficiary. SBSA may conduct audits to ensure written notices have been received by the Operator (or agent) who releases Property guarantees to SBSA for cancellation. Before Property guarantees may be released for issue, cancellation or payment they need to be approved. Only Operators with ‘approval’ rights may approve Property guarantee actions. By approving Property guarantees, the Operator confirms details on the Property guarantee are correct and may be allowed to be sent to SBSA to issue, cancel or pay a guarantee, depending on the request. Once Property guarantees have been approved, they may be released to SBSA to perform a certain action (issue, payment or cancellation). By releasing the Property guarantee the Operator with ‘release’ rights has confirmed the details of the Property guarantee are correct and SBSA can go ahead with the request. A Property guarantee will be printed in a defined template form. Guarantees in ‘draft’, ‘paid-out’ or ‘cancelled’ status will be watermarked. An agent’s list of Property guarantees stored on the system may be printed. The Segregation of Duties is a key component to managing the Service and associated risks. Each action in the process should be allocated to different people. The greater the segregation of duties the greater the control. The agent can select any combination of duties per person. A typical example of the allocation of actions per Operator is: Clerk- Create and Audit Supervisor- Verify and Authorise Change Manager- Release A facility of release only is available. This allows a single Operator to create and release a transaction. Extreme caution is advised when requesting this option as it allows any Operator who has the ‘create’ and ‘release’ access levels the ability to effect payments without forcing the normal manual workflow (without having to audit and verify a transaction). 2.8.5 Limits The Principal and/or Participant must ensure that the transactional limits on accounts are adequate and in line with requirements. Two limits apply to TPFA Property guarantees – an item limit (per Property guarantee) and a limit per agent. The item limit ensures Property guarantees requested do not exceed five million Rand. The limit per agent ensures that the cumulative total of all active Property guarantees does not exceed an amount specified by SBSA’s credit department. These limits are stored on Bank Trade and will be controlled by the relevant segment credit area. 2.8.6 Access Access to functionality and accounts can be restricted per Operator as specified by the Designated Person(s), appointed by the agent. 36 Operational Regulations 2.8.7 Release Levels Version 2012-06-18 Release levels govern which Operator(s) are required for authorising the release of transactional batches and loading of creditors for processing. The release level can be seen as an electronic signature and should be allocated appropriately. 2.8.8 TPFA Property guarantees release and approval rights For TPFA Property guarantees there are ‘approve’ and ‘request’ actions controlled by access paths. These apply to the Issue, Pay, and Cancel instructions sent by the agent via Business Online to SBSA. The ‘approve’ action allows agents to internally approve Issue, Pay, and Cancel instructions prior to sending the instructions via the ‘request’ action to SBSA. Approve and release actions can be seen as electronic authorisation. 2.8.9 Cut-Off Times Please note: The agent is responsible for ensuring that transactions are released and successfully processed prior to the specified cut-off times for opening, transfer and closing of accounts. Account opening Monday - Friday (excluding public holidays): 15h00 Account closure Monday – Friday (excluding public holidays): 15h30 Property guarantee payments Monday – Friday (excluding public holidays): 15h00 Saturday (excluding public holidays): 10h15 2.8.10 Service availability Account opening Monday - Friday (excluding Saturdays and public holidays) 07h00 – 15h00 Account closure Monday – Friday (excluding Saturdays and public holidays) 06h30 – 15h30 The system is available 24 hours for TPFA balances, statements and transaction details. The TPFA Property guarantees product is available 24 hours but the release of a Property guarantee for payment is not permitted after cut-off times (shown above). 2.8.11 Missed Cut-off Times The agent must make every effort to meet the relevant Cut-Off times. Operators will be informed if they have missed the Cut-Off time via a screen message, which will instruct the Operators on how to proceed. The type of service in use (Same Day or Dated), and the method of capture (online or batch import) will determine the way in which the transactions will be processed. TPFA property guarantees cannot be instructed to be paid after cut-off times. If the payment instruction is requested, after cut-off times, a message will warn the Operator that cut-off times have been missed and the Property guarantee will not be paid. The Operator must issue the instruction to pay the following business day. 37 Operational Regulations Version 2012-06-18 2.8.12 Contingency Plan Should the TPFA system be unavailable, please contact the Disaster Recovery department and they will process the transaction on your behalf. Contact number: 0860 123 006 38 Operational Regulations Version 2012-06-18 2.9 DOMESTIC TREASURY 2.9.2 Overview Viewing of Balances for Domestic Treasury Call & Fixed, loan and deposit accounts. Provisional Statements for Call & Fixed, loan and deposit accounts 65-day Statement history for Call & Fixed, loan and deposit accounts Viewing of Assets held in Safe Custody Deposits and Withdrawal of funds between the account holders own SBSA current accounts and Treasury Call Accounts. 2.9.3 Segregation of Duties In order to capture or affect Deposit / Withdrawal transfers, a number of actions have to be performed: Process Deposits Withdrawals Actions required / Create Audit Verify/ change Authorise Release An explanation of each action follows: Action Explanation Create Operator captures and validates new transaction for making deposits/ withdrawals. Operator prints audit report, which partially ‘locks’ transactional batches, preventing modifications or deletions of transactions. The printing of an Interim Audit Report is optional, but highly recommended. Modifications can be made by allowing an ‘authorised change’. Operators ‘lock’ transactional batches, preventing modifications or deletions unless authorised to do so. Operators ‘unlock’ transactional batches, permitting modifications or deletions to an audited or verified transactional batch. Operator authorises SBSA to process a transactional batch. Release levels and limits govern which, and how many, operators are required to send a transactional batch for processing to SBSA. Audit Verify Authorise change Release By releasing, each operator confirms that the details of the transactional batch have been personally checked and are correct. Release only Final Audit Report The release level can be seen as an electronic signatory and should be allocated appropriately. The release only option is available to single operator users, whereby the capture and release is required without having to audit and verify. Operator downloads and prints the Final Audit Report. This is essential as it is the only document of proof of transfer and is used for the tracing of payments. The printing of a Final Audit Report cannot be made mandatory, but is highly recommended. The Segregation of Duties is a key component to managing the Service and associated risks. Each action in the process should be allocated to different people. The greater the segregation of 39 Operational Regulations Version 2012-06-18 duties the greater the control. The Principal and/ or Participant(s) can select any combination of duties per person. A typical example of the allocation of actions per operator is: Clerk- Create and Audit Supervisor- Verify and Authorise Change Manager- Release 2.9.4 Action Dates Transactions will be processed by the specified ‘Action Date’ provided that the Cut-Off Times are adhered to. Please note: The following rule applies for transactions that are future dated: The runs are processed at 08h00, real-time; therefore funds must be cleared and available before the transaction will be effected. NB: Only one transaction (either a deposit or a withdrawal) may be processed per day, per call account number. If more than one transaction is to be processed within the same day you may contact your relationship dealer, who will at the discretion of SBSA process the transaction on your behalf. 2.9.5 Cut-Off Times Please note: The Principal and/or Participant(s) are responsible for ensuring that transaction batches are released and successfully processed prior to the specified Cut-Off Times for making deposits or withdrawals. DEPOSITS & WITHDRAWALS Monday - Friday (excluding public holidays): 15h30 Saturday: 11h00 2.9.6 System Availability Domestic Treasury is available for daily processing between 08h00 to 15h30 Monday to Friday, and 08h00 to 11h30 on Saturdays. Future dated transactions can be released out of the daily processing times. 2.9.7 Contingency Plan Should the Domestic Treasury system be unavailable, please contact your Domestic Treasury Relationship Dealer and they will process the transaction on your behalf. 40 Operational Regulations Version 2012-06-18 2.10 INTERNATIONAL BANKING 2.10.2 Introduction International Banking provides an online payment and management system offering local and cross border payment capabilities and access to account information for the Principal and Participant. 2.10.3 International Banking Account Management Overview Foreign Currency Account Management o Viewing of real time and end-of-day balances and exposures for Customer Foreign Currency Accounts o Printing of statements with balances and transactions o 6 months-to-current statement history Multi-Currency Account Management o Viewing of balances of offshore accounts held at International banks o Daily, weekly or monthly statements of accounts held at SWIFT compliant international banks with SBSA 2.10.4 International Banking Funds Transfer Overview Make payments from a CFC account to pre-loaded beneficiaries Make payments from an offshore bank account (accounts held at SWIFT compliant international banks with which SBSA has bilateral agreement) to pre-loaded beneficiaries domestically or cross border Make payments from ordinary SBSA current accounts to pre-loaded beneficiaries both domestically and cross border. Transfer funds between own CFC accounts Transfer between own CFC and own SBSA current accounts 2.10.5 Binding Agreement Each offer to purchase or sell foreign currency via the Service by the Principal and/or Participant(s) constitutes a binding agreement between SBSA and the Principal and/or Participant(s), just as if the relevant Application forms had been completed and signed. The Principal and/or Participants are therefore bound by all data submitted to SBSA via the Service. 2.10.6 Purchase of Foreign Currency The Principal and/or Participant(s) warrant that the information submitted to SBSA is correct and that the foreign currency applied for will only be used for the purpose for which it was indicated. No foreign credit will directly or indirectly accrue to the Principal and/or Participant(s) or to any other resident of the Common Monetary Area, without disclosure to the Exchange Control Authorities. The Principal and/or Participant(s) acknowledge that they will not be able to revoke or countermand any ‘released’ application to purchase foreign currency, unless agreed with SBSA. 2.10.7 Sale of Foreign Currency The Principal and/or Participant(s) will comply with the Exchange Control regulations and will disclose all balances of foreign currency due to them. Neither the Principal nor the Participant(s) will withhold any balance of foreign currency in respect of the underlying transaction in contravention with Exchange Control regulations. 41 Operational Regulations Version 2012-06-18 2.10.8 Segregation of Duties The following actions are necessary for making a payment or transfer: Process Beneficiary Details Actions required Create Audit Payments/ Transfers Create Audit Verify/ Authorise change Verify/ Authorise Release change An explanation of each action follows: Action Explanation Create Operator captures and validates new beneficiary details or transactions for making payments/ transfers (Validate – check for valid branch, account, date and beneficiary details). Audit Operator prints audit reports and partially ‘locks’ beneficiary or payment details, preventing modifications or deletions of transactions, unless authorised to do so. It is essential to print the Final Audit Report, as it is the only document of proof for tracing payments. The Customer Advice (only for Rand Accounts) which forms part of the Final Audit Report will enable the client to see his transaction number, and should be held as proof of payment. Verify Operator ‘locks’ beneficiary/ payment details, preventing modifications or deletions unless authorised to do so. Authorise change Operator ‘unlocks’ beneficiary/ payment details, permitting modifications or deletions to an audited or verified beneficiary or payment. Release Operator authorises SBSA to process a transactional batch. Release levels and limits govern which operators (and how many) operators are required to send a transactional batch for processing at SBSA. By releasing the operator confirms that the details of the transactional batch has been personally checked, and is correct The Segregation of Duties is a key component to managing the Service and associated risk. Each action in the process should be allocated to different people. The greater the segregation of duties the greater the security. The Principal and/ or Participant(s) can select any combination of duties per person. A typical example of the allocation of actions per person is: Clerk- Create and Audit Supervisor- Verify and Authorise Change Manager- Release 2.10.9 Beneficiary Details There are different ways in which beneficiary details can be managed: 42 Operational Regulations Version 2012-06-18 Bank- stored Account details are stored on the SBSA mainframe and can be modified on-line by the Principal and/or Participant(s). The SBSA Support area will modify SWIFT Addresses, audit and lock client captured beneficiary details to ensure that STP Rules have been adhered to. On exception the SBSA Support Area will also capture beneficiary details upon request from the client and a fee will be levied per beneficiary. 2.10.10 African Transactional Gateway SBSA’s African Transactional Gateway (ATG) provides a quick, safe and convenient channel for Standard Bank and Stanbic corporate and institutional clients to make payments to beneficiaries in Africa or anywhere in the world. 2.10.11 African Transactional Gateway Overview ATG facilitates the transmission of transaction information to from the Principal and/or Participant to SBSA Transaction instructions will be routed to the relevant local or foreign bank for processing Payments made as per the transaction instruction can be made via EFT, Cheque or SWIFT ATG provides audit reports and statements for purposes of reconciliation. Transfer between own CFC and own SBSA current accounts 2.10.12 Data Accuracy The Principal and/or Participant(s) must only provide valid and correct data, and will disclose all information, as required by the Exchange Control regulations, when purchasing and selling foreign currency. The Principal and/or Participant(s) must not duplicate any application to purchase or sell foreign currency. 2.10.13 Value Dates Transactions will be processed by the specified ‘Value Date’ provided that the Cut-Off Times are adhered to and does not fall on a weekend / public holiday. 2.10.14 Cut-Off Times Transactions on the INTERNATIONAL BANKING system are subject to currency cut-off times. This must be used as a guide only, as it is subject to change. COUNTRY CUT-OFF TIME Australia Austria Belgium Canada Denmark Euro Finland France Germany 03h00 11h00 11h00 15h30 03h00 11h00 11h00 11h00 11h00 43 Operational Regulations Hong Kong Ireland Italy Japan Malaysia Netherlands New Zealand Portugal Norway Singapore Spain Sweden Switzerland United Kingdom USA Version 2012-06-18 03h00 11h00 11h00 03h00 12h30* 11h00 03h00 11h00 03h00 03h00 11h00 03h00 03h00 11h00 15h30 *Previous day The Principal and/or Participant(s) are responsible for ensuring that transactions are released and successfully processed prior to the specified Cut-Off Times for making payments. The Principal and/or Participant(s) must ensure that they meet both the currency cut-off time and processing times. Processing Times The final processing time for payments is 15h30 South African time. TRANSACTION TYPE BANKS AFFECTED Same Day Value All Banks payment Spot value payment All Banks Tom value payment All Banks PROCESSING CUT-OFF TIME (weekday) EXAMPLE 15h30 Release date Mon Value Date Mon 15h30 15h30 Mon Mon Wed Tue Release date: The date on which payments are submitted for processing Value Date: The date on which the account will reflect that the funds have been deposited into the beneficiary’s account and the funds are available for withdrawal. African Transactional Gateway Cut-off and Processing Times COUNTRY CUT-OFF TIME Same Day SBSA CREDITS LEAD DAYS Ghana 12.30pm Same Day T+5 D.R.C 12.30pm Same Day T+2 Nigeria 12.30pm Same Day T+1 Mauritius 12.30pm Same Day T+2 Tanzania 12.30pm Same Day T+2 CUT-OFF TIME Agent Banks Credit and Future Dated 12:30 and 16.00pm 12:30 and 16.00pm 12:30 and 16.00pm 12:30 and 16.00pm 12:30 and 16.00pm 44 Operational Regulations Kenya 12.30pm Same Day T+5 Uganda 12.30pm Same Day T+2 Botswana Lesotho 12.30pm 12.30pm Same Day Same day T+1 T+1 12.30pm Same Day T+2 Malawi Mozambique Swaziland Zambia Zimbabwe Namibia 12.30pm Same Day T+2 12.30pm Same Day T+1 12.30pm Same Day T+1 12.30pm Same Day T+2 12.30pm Same Day T+1 Version 2012-06-18 12:30 and 16.00pm 12:30 and 16.00pm 12:30 and 16.00pm 12:30 12:30 and 16.00pm 12:30 and 16.00pm 12:30 and 16.00pm 12:30 and 16.00pm 12:30 and 16.00pm 12:30 and 16.00pm Missed Cut-off Times The Principal and/or Participant(s) must make every effort to meet the relevant Cut-Off Times. Operators will be informed if they have missed the Cut-Off Time via a screen message, which will instruct the Operators on how to proceed. SBSA will not be liable for any claim, including interest claims, arising from missed Cut-Off Times. 2.10.15 Exchange Control – Document Management Exchange Control Requirements with regards to Business Online – International Banking payments for SA Resident account holders In terms of current exchange control rulings, most outgoing cross-border payments need to be supported by documentary evidence. It is the responsibility of the Authorised Dealer (i.e. South African Bank) effecting the outward payment to ensure that the correct documentation is viewed and appropriately endorsed, prior to processing the payment. The exception to this rule is where a client holds an Import Letter of Undertaking with the South African Reserve Bank, thereby exempting the client from submitting documentation in respect of trade and trade-related payments. It is imperative that supporting documentation reaches the client’s preferred ITS Frontline office in good time (i.e. as soon as possible once payments have been released). Please remember that this process applies to both CFC and Rand settled payments. 2.10.16 LIMITS A Principal and/or Participant(s) will only be allowed to transact such an amount as is available within their limit as agreed with SBSA (held as a Rand equivalent amount). The Principal and/or Participants will be responsible for allocating operator limits. This limit is the maximum amount in Rands to which a given operator can deal in a single transaction. 45 Operational Regulations Version 2012-06-18 AUDIT REPORTS Interim Audit Reports will be displayed upon auditing of a batch of transactions, after it has been successfully saved. Final Audit Reports will be displayed only once the transaction has been successfully processed, and has reached a state of “Final Audit to be Downloaded”. The following procedures with regards to Foreign Exchange payments are required of all International Banking clients: Trade related payments (Imports/Export) - No Import/Export Letter of Undertaking in place CFC Rand / ZAR 1. Capture payment(s) as per normal (at least 1. Capture payment(s) as per normal (at least 2 business days before value date) 2 business days before value date) a. Select IBC frontline office where a. Select IBC frontline where documentation will be presented documentation will be presented. b. Only trade related BOP categories can Payment Status = Validated Addition be selected. Payment status = Validated Addition 2. Print Interim Audit report(s) on same day 2. Print Interim Audit report(s) on same day and attach to supporting Exchange Control and attach to supporting Exchange Control documentation, e.g. original invoice, bill of documentation, e.g. original invoice, bill of lading and bill of entry. lading and bill of entry. Payment Status = Audit Addition. Payment Status = Audit Addition 3. Payment(s) can now be verified and 3. Payment(s) can now be verified and released. released. Payment Status = Awaiting Document Payment Status = Awaiting Document Sighting. Sighting. 4. Submit documents (as per 2 above) to the 4. Submit documents (as per 2 above) IBC frontline selected in 1.1 above. IBC frontline office selected in 1.1 above. 5. The agent will stamp the documentation 5. The agent will stamp the documentation “exchange provided” and update the “exchange provided” and update the payment status. payment status Payment Status = Busy Processing Payment Status = Busy Processing 6. Print final audit report. 6. Print final audit report. Payment Status = Final audit to be Payment Status = Final audit to be downloaded. downloaded. NB!! Payments will not be processed until the relevant exchange control documentation has been submitted to the IBC. Please note that it will be necessary to extend cover if documentation has not been sighted before currency cut-off time on value date. Trade related payments (Imports/Export) - SARB Import/Export Letter of Undertaking in Place CFC Rand / ZAR 1. Capture payments(s) as per normal (at least 1. Capture payment(s) as per normal (at least 2 business days before value date) 2 business days before value date). a. Only trade related BOP categories Payment Status=Validated Addition can be selected. 2. Print final audit report and attach to Payment Status=Validated supporting Exchange Control Addition documentation, e.g. original invoice, bill of 2. Print final audit report and attach to lading and bill of entry. supporting Exchange Control Payment Status = Final Audit to be documentation, e.g. original invoice, bill of downloaded. lading and bill of entry. 3. File documentation as per SARB letter of Payment Status=final audit to be undertaking for audit purposes 46 Operational Regulations downloaded. 3. File documentation as per SARB letter of undertaking for audit purposes Version 2012-06-18 Non-Trade related payments – Rand / ZAR Account According to SA Exchange Control Rulings 1. Capture payment(s) as per normal (at least 2 business days before value date). Select IBC branch where documentation will be presented. Payment Status=Validated Addition 2. Print Interim Audit Report(s) on same day and attach to supporting Exchange Control documentation, e.g. original invoice 3. Payment(s) can now be verified and released. Payment Status=Awaiting Document Sighting 4. Submit documents (as per 2 above) to IBC branch selected in 1.a above. 5. IBC will stamp documentation “exchange provided” and update payment status Payment Status=Busy Processing 6. Print final audit report. Payment Status=Final audit to be downloaded. According to SARB Exchange Control Approval 1. Capture payment(s) as per normal (at least 2 business days before value date) a. Select IBC branch where documentation will be presented b. Quote SARB approval number on payment Payment Status=Validated Addition 2. Print Interim Audit report(s) on same day and if required, attach to supporting Exchange Control documentation, e.g., original invoice 3. Payment(s) can now be verified and released. Payment Status=Awaiting Document Sighting. 4. Submit documents (as per 2 above) to the IBC branch selected in 1.a. above. 5. IBC will stamp “exchange provided” documentation and update payment status Payment Status=Busy Processing 6. Print final audit report. Payment Status=Final Audit to be downloaded 2.1.5 System Availability The International Banking system will be operational from 07:00 to 19:00 from Monday to Friday and from 07:00 to 13:00 on Saturdays (for pre-releasing capturing only). System uptimes are not affected by currency cut-off times. 2.1.6 Contingency Plans In the event of system unavailability, the client is urge to contact either the frontline ITS (or non-res centre, depending on the type of deal) in order to capture the deal manually. The Bank may also choose to extend cut-off times to accommodate such plans. 2.6.13 Confidential Information The Principal and/or Participant agrees that confidential information in the Bank’s possession may be used and retained and or transmitted to third parties by the Bank in order for it to comply with local and international legislation and/or standards. Any disclosure by the Bank of such information to a third party if necessary for the purpose of compliance with the above shall not constitute a breach by the Bank of its obligations under these Services. The Principal and/or Participant agree that the Bank shall not be held liable for non-receipt of the funds by the recipient or the recipient's bank or agent where sovereign rules and regulations affect the transmission of the funds. 47 Operational Regulations Version 2012-06-18 2.11 FX TRADING 2.11.2 FX Trading Overview Capture, submission and conclusion of new spot, forward and swap deals Capture and submission of orders including stoploss, linked and profit take Deal Management (surrenders, extensions and early deliveries) of existing transactions Enquiries on current day’s unsettled and historical deals (provided the original maturity date was within the previous three- (3) months). 2.11.3 Binding Agreement Each transaction to purchase or sell foreign currency via the Service by the Principal and/or Participant(s) constitutes a binding agreement between SBSA and the Principal and/or Participant(s) when the deal is completed. A deal is considered complete when it has been logged in the SBSA system and a deal (transaction) number(s) is/are generated electronically. An electronic confirmation of the transaction number(s) will be sent to the Principal and/or Participant(s) after each deal is completed. Other means of confirming the completed deal are: a fax, confirming the details of the transaction concluded in terms of the conditions stipulated in the General Conditions applicable to Foreign Exchange Contracts document. A letter sent via the branch, also confirming the details of the transaction concluded in terms of and subject to the conditions set out in the General Conditions applicable to Foreign Exchange Contracts document. 2.11.4 Receipt and Confirmation of Deals The Principal and/or Participant(s) will be afforded the duration of one business day (calculated to commence at the time on, which the relevant confirmation was generated by SBSA) within which, to confirm the accuracy of, or request the correction of, such confirmation (in the latter case, indicating how it believes the terms of such confirmation should be correctly stated and such other terms which should be added to, or deleted from, such confirmation to make it correct). If the Principal and/or Participant(s) fail to notify SBSA within such period, the particulars recorded in the confirmation shall be deemed to be correct and accepted by all parties. 2.11.5 Cancellation of Deals The Principal and/or Participant(s) warrant that the information submitted to SBSA is correct. The Principal and/or Participant(s) acknowledge that they will not be able to revoke or countermand any ‘submitted’ application to purchase/sell foreign currency after the Principal and/or Participant has accepted the quote, unless agreed upon in writing with the Treasury Division of SBSA. For the purposes of this Agreement, a Pre-accepted deal is considered accepted when the Principal and/or Participant(s) ‘submits’ the deal to SBSA, while a Quoted deal is considered accepted when the Principal and/or Participant accepts. 2.11.6 Limits A Principal and/or Participant(s) will only be allowed to transact such an amount as is available within their limit as agreed with SBSA (held as a Rand equivalent amount). The Principal and/or Participants will be responsible for allocating operator limits. This limit is the maximum amount in Rands to which a given operator can deal in a single transaction. 2.11.7 Data Accuracy The Principal and/or Participant(s) will only provide valid and correct data, and will disclose all information, as required for the processing of their deals and contracts. 2.11.8 Processing Times Processing time for Treasury deals is from 08h00 to 16h30 on business days. 48 Operational Regulations Version 2012-06-18 2.12 CUSTODY COMMUNICATIONS 2.12.2 Functionality 2.12.2.1 Overview of Custody Communications The purpose of the Custody Communications system is to provide Investor Services (IS) clients with Internet access to their Custody and Settlement business. Through this window, clients will be able to instruct IS electronically to effect settlement of their trades and to cancel previously sent instructions. Clients will be able to view the status of their trades from creation to submission to receipt by SBSA, to settlement, with comprehensive History reporting. Additionally they can access Holdings balances and a complete Corporate Actions module. 2.12.2.2 Glossary of Terms Custody IS IA SBSA CIB Securities Lending Settlement STRATE SWIFT Custody is the range of services relating to the safekeeping of financial instruments in a portfolio on behalf of the client including any action to be taken as a result of corporate actions occurring while instruments are held by the custodian Investor Services (Division) is a Division of CIB that handles the Custody and Settlement requirements for clients. IA (integration architecture) is an area of CIB responsible for middle-ware solutions and forms a part of IT The Standard Bank of South Africa Limited Corporate Investment Banking Securities Lending is the lending of shares or bonds from an investor's portfolio to meet the temporary needs of other parties, typically dealers who need securities to support their trading activity. Although there is a transfer of title, the lender retains the benefits of ownership, is secured with collateral and is paid a fee Settlement relates to the exchange of instrument holding against cash with a resultant change in portfolio position and takes place in whichever market environment is applicable to the instrument type STRATE (Share Transactions Totally Electronic) is the acronym given to the Electronic settlement Exchange for Equities in South Africa A standard utilised for message formats in the financial services industry Capture forms Equities/Bonds, Money Market and Corporate Action Elections The Custody Communications system allows the user to capture trades on equities / bonds, money market, ADR’s and advise on corporate action elections. All four functions include an ASCII Import as well as a cancellation function. The function provides a status per trade to advise the user that the trade has reached CIB’s custody system. American Depository Receipts – ADR’s This function is separated from the other capture functions due to the fact that the instruction does not update IS’s custody system automatically. There are a number of manual duties that need to be performed in order for the instructions to be effected. 49 Operational Regulations Version 2012-06-18 The function provides a status per instruction to advise the user that the trade is being effected by the representative in the ADR area. Segregation of duties The segregation of duties is a key component to managing the service an associated risk. Each action in the process should be allocated to different people. The greater the segregation of duties, the greater the security. The Principal and/ or Participant(s) can select any combination of duties per person, e.g. access paths for Verify (1st signature) and Release (2nd signature). Instruction Timelines EQUITY SETTLEMENT TIMELINES On-Market Description of Deadline CIB CUT-OFF T+ 5 settlement Cycle Broker alledgement T+2 End of Day Client Instruction deadline T+3 10h00 Reporting trade to STRATE Commit to a trade Manually commit to a trade Uncommit to a trade Cancellation of a trade B2B link to a trade Delink a B2B order Reverse substitution Voluntary Reverse Substitution Involuntary T+1 Settlement Cycle Client Instruction Deadline Report trade to STRATE Commit to a Trade Manually Commit to trade Uncommit to a trade B2B link to a trade Delink a B2B trade Cancellation of a trade T+0 Settlement Cycle Client Instruction Deadline Report trade to STRATE Commit to a Trade Cancellation of a trade BATCH TIMELINES Description STRATE settlement batch STRATE auto affirm batch On-Market STRATE CUT-OFF Off-Market CIB CUT-OFF Off –Market STRATE CUT-OFF T+3 12h00 T+3 11h30 T+3 12h30 T+3 12h30 T+3 17h00 T+3 17h00 T+3 17h00 RFS T+3 12h00 T+3 12h00 T+2 12h00 T+3 12h00 Until SD-RFS T+3 17h00 T+3 17h00 RFS T+3 12h00; T+4 09h00 T+4 10h00 SD-1 12h00 SD-1 15H00 SD-1 15H00 SD-1 17h00 SD-1 17h00 Sd-1 17h00- RFS SD-1 17h00 SD-1 17h00-RFS SD-1 15h00-RFS SD 12h00 SD 12h00 SD 15H00 SD 17H00 SD 12H00-RFS Frequency of update Every 15 minutes Every 30 minutes 50 Operational Regulations Money Transfer batch B2B settlement batch STRATE not settled batch STRATE problem trade batch Unexcor 1st settlement Unexcor 2nd settlement Version 2012-06-18 Every 5 minutes Every 2 hrs after 12:00 Every 2 hrs after 12:00 Once @ 12:45 10h30 –11h00 14:30 – 15h00 MONEY MARKET TIMELINES Description CIB Cut-Off Client instruction deadline SD 13h00 Client Amendment deadline SD 14h00 Payment Cut-off time between SBSA and the Market Market Cut-Off SD 15:30 ADR TIMELINES Description of Deadline T + 5 Settlement Cycle Market deadline to report trades Internal deadline to received instructions Trades must be committed by T+1 Settlement cycle Market Deadline to report trades Internal deadline to receive instructions Trades must be committed by GILT TIMELINES Description Client instruction deadline STRATE Deadline Off STRATE Market Market T+2 12h00 T+2 11h00 T+3 12h00 On T+2 15h00 T+2 11h00 T+3 12h00 T+1 15h00 T+1 14h00 T+1 17h00 CIB Cut-Off SD-1 10h00 Deadline for advice to client and counterparties of possible problem trades. Members to contact settlement agent for final settlement position. Members to declare failed members/client trades IS to advise member of settlement problems on T+1 trades booked after 13h00 Failed trade process deadline for members IS to advise BESA and members of settlement problems. IS to exclude problem trades for first settlement. IS to commit of first settlement run. First settlement run. Second settlement deadline for same day SD 13h00 trades. Second settlement process run. CORPORATE ACTION TIMELINE Description of Deadline CIB STRATE Deadline Market Cut-Off SD-1 10h00 penalties) SD-1 13h00 SD-1 16h00 SD-1 16h00 SD-1 16h30 SD-1 18h00 SD 08h00 SD 09h00 SD SD 10h15 10h30 SD 13h30 SD 14h30 STRATE LDT + 3 at 12h00 LDT + 3 at 16h30 51 (due to Operational Regulations Version 2012-06-18 2.12.3 Pending Reason Codes on Trade SWIFT SWIFT web page SWIFT.com STRATE STRATE web page STRATE.co.za NCS Contact your Client Service Officer IS CHARGES Please contact your Relationship Manager at IS for information on charges 2.12.4 Responsibility Guidelines for Electronic Instructions Client Money market Instructions - It is the responsibility of the client of phone Money Market operations once they have captured the instruction and notify operations that the status of their trade is C4 and that they have received an acknowledgement number. 2.12.5 Risk Management Data Access Access to the data will be controlled by the following mechanisms: Enquiries – Data returned by enquiries is controlled by the accounts linked to the Operator ID. This mechanism allows for example, one operator to only view transactions from account 1 and another those from account 2, but their supervisor can view the transactions from both accounts. Updates – NCS requires a Custody Instruction address to identify the Client adding a transaction. The Custody Instruction Address will be stored at User ID level. If a Client has multiple User ID’s, the same Custody Instruction Address will be linked to all of them. No restrictions will be imposed at Operator or Client level with regard to the maximum value that can be processed per transaction or per account. 2.12.6 System Availability IS database (NCS) – 07h00 to 19h00 Monday to Friday. Domestic Banking – Custody Communication Product – 24h00 per day 7 days per week 2.12.7 Contingency Plan Should the Custody Communication system be down for a prescribed amount of time, a Business decision would be made to revert back to fax. 52 Operational Regulations Version 2012-06-18 2.13 INTERNATIONAL TRADE SYSTEM 2.13.2 International Trade System Overview Import Documentary Credits: o o o o o Electronic submission of, applications forms, request for amendments, request for cancellations, authority to pay and acceptance of discrepancies and/or documents Electronic advices directly from SBSA e.g. establishment, amendment, cancellation, drawing and payment advices Sending and receiving messages directly to and from SBSA regarding a transaction e.g. to query receipt of documents or to query whether a payment has been effected Notifications from SBSA to action pending transactions either by facsimile, email or SMS Creating own templates to store details of regular beneficiaries and application forms 2.13.3 Binding Agreement Each application to transact constitutes a binding agreement between SBSA and the Principal and/or Participant(s). Consideration to this application will only be given provided that all relevant Indemnities have been obtained. Note - For transactions requiring Insurance, SBSA’s interest should be duly noted. 2.13.4 Processing Times Normal Processing times are from 8h00 – 15h30 provided that the necessary credit facilities are in place. Any transactions received thereafter will be processed the following Business Day. 2.13.5 Limits The Principal and/or Participant(s) will be responsible for allocating operator limits. This limit is the maximum amount in Rands to which a given operator can transact in a single transaction. 2.13.6 Secure Messaging Secure messaging allows for online communication in a secure environment between operators in the IBC and front end users in respect of specific transaction. Instructions received from clients through this medium will be considered valid and binding. 2.13.7 Data Accuracy The Principal and/or Participant(s) will only provide valid and correct data, and will disclose all information, as required for the processing of their transactions. 2.13.8 System Availability System available 24hrs, however, processing subjected to times stipulated above. The Business Online and IBC support desk is available from 8h00 – 16h30 for both technical and product specific help. 2.13.9 Status Codes and Descriptions The table below lists the various status codes which will be encountered on the International Trade system as well as a brief explanation of each code. 53 Operational Regulations Version 2012-06-18 2.13.10 SWIFT (Society for Worldwide Financial Telecommunications) characters SWIFT accepts certain characters when processing applications. In the event of an unacceptable Status Status Description Status Meaning Messages/Trns/Both Code Reflects when a transaction or Both message has been created. Reflects when a transaction/message VC Validated Change has been unlocked (Authorise Both Change) Reflects when a draft swift message has been created for a transaction. L1 Part Locked Transactions Accepting the draft swift will place the transaction in a locked (LO) status. Reflects when a transaction/message has been locked. In order to modify, it LO Verified/Locked Both will have to be unlocked (Authorise Change) Transaction /message has been PR Part Released released and is awaiting another Both operator to release Reflects when a transaction/message RL Released which has been released and awaiting Both processing at the bank Released and Transaction is being processed at the RS Transactions Stripped bank Transaction has been rejected by the ER Error Encountered bank. Requires modification and re- Transactions submission Final Audit to be Transaction has been released by the C4 Transactions Downloaded bank. Transaction has been processed Final Audit CF successfully and the audit report has Transactions Downloaded been printed. Transaction booked Transaction is completed and has CA Transactions off been closed Reflects when a released message Released message has been attended to by the bank RR Messages attended to and does not require a reply from the client. Released message Reflects when a message requires a Messages RA reply required reply from the client. SWIFT character being used, the International Trade System will provide you with a warning. The application can only be completed once the character has been deleted. VA Validated Addition Note: All letters or the alphabet as well as numbers are accepted. The table below lists the punctuation marks which are acceptable as well. Character / : ‘ + Explanation Forward Slash Colon Apostrophe Hyphen/Dash Plus sign 54 Operational Regulations ( Open bracket ) Close bracket . Full Stop , Comma ? Question mark 3 Version 2012-06-18 SYSTEM AVAILABILITY 3.8 THE SERVICE Whilst every effort will be made to adhere to these above service times, SBSA accepts no liability for the unavailability of the Service for whatever reason. Unless otherwise notified, all changes to the Service, will be implemented as follows: SITUATION Backups & Maintenance DETAILS Service unavailable between 00h00 to 07h00 on Sundays Emergency changes A Message will be broadcast on the message banner, on the web site to notify unavailability of the system. 3.9 THE SUPPORT Business Online provides call centre support to all Business Online clients. The hours of support are from 07h00 to 19h00 – Monday to Friday (excluding Sundays and Public Holidays), and on Saturdays from 08h00 to 13h00. Outside of business hours limited support will be available (business hours are from 08h00 to 16h30 – Monday to Friday, excluding Saturdays, Sundays and Public Holidays). All calls are recorded to allow continuous improvement and assessment of the service provided by the Call Centre. 4. RISK MANAGEMENT OVERVIEW Due to the nature of the transactions for which the Service is utilised, risk reduction procedures need to be implemented and managed by the Principal and/or Participant(s). These include: USER ID After installation of the system, the Principal and/or Participant(s) will be assigned a User ID. The User ID is the Principal’s and/or Participant(s)’ unique reference and must be quoted in all correspondence with SBSA. OPERATOR ID Each operator will be assigned an Operator ID. The Operator ID is the Operator’s unique reference for logging onto the system and must not be shared by anyone. The expiry period for passwords is 30 days. It is the Designated person's responsibility to advise SBSA of any changes with regards to Operators (resignations, transfers, etc.) 55 Operational Regulations PASSWORDS Version 2012-06-18 A successful combination of an Operator ID and daily password will be authenticated and the operator will be allowed access to the system. An Operator Reset Key needs to be loaded by every Operator and must be used in order to be authenticated in the case of a daily password reset or first time log-on. TWO FACTOR AUTHENTICATION TOKEN LOGON The purpose of this added authentication feature is to enhance our security features in order to mitigate fraud related activities. Each operator will be assigned a Token device, which will be linked to the Operator ID exclusively. The Token device will be used to generate a unique One Time Password (numerical) which must be used together with the current logon credentials i.e. Operator ID and Daily Password to successfully log into the Business Online application. Once a token has been received by an operator, the operator will be required to logon to the application and register their token within a specified number of days, by following the respective instructions on the Business Online logon screens of the application. The registration shall included entering in the Reset Key, Token Serial Number and One Time Password and then the enter another One Time Password 30 seconds later. It is the Designated person's responsibility to advise SBSA of any changes with regards to Operators (resignations, transfers, etc.) and the re-ordering of additional or replacement token devices. It is the responsibility of each operator to protect their logon credentials and token device as SBSA shall not be held liable for fraud that has been committed due to the client’s negligence or wilful misconduct for any reason whatsoever. Speaker Verification The Principal and/or the Particpant(s) acknowledge that, unless SBSA is advised otherwise in writing, Operators will be enrolled by SBSA for purposes of Speaker Verification whereby Operators wishing to reset passwords are authenticated by way of Speaker Verification (an application that identifies a person by using voice biometrics to confirm the person is the same person that was originally recorded). The Principal and/or the Participant's) acknowledge that it/they are responsible for advising SBSA immediately upon an Operator ceasing to be employed and/or authorised to transact by the Company and indemnifies SBSA from any loss and or damages suffered as a result of the failure to advise SBSA as aforesaid. Rules and conditions for passwords: Selection Passwords must be non-trivial and not predictable. Trivial passwords are obvious words that may be easily associated with the Operator or organisation. Predictable passwords are logical sequences or time related words. Memorisation Passwords must be memorised and never physically recorded on media viewable by other operators. Change Passwords must be changed: On expiry; After a reset; or 56 Operational Regulations Version 2012-06-18 If there is any likelihood that the password has been inadvertently or deliberately compromised. Accountability Operator passwords and operator reset key is confidential and must not be divulged or given to anyone, as breach of security through the use of a password/operator reset key will be the responsibility of the holder of the Operator ID. Password Expiry Daily Password – The passwords will expire after 30 days. Operator Reset Key – Never. Suspension Daily Password When attempting to sign-on, an Operator ID will be suspended after five (5) incorrect passwords have been entered. Where the password for an Operator ID has remained unchanged for 45 days since the last password change, the Operator ID will be made INACTIVE. Operator Reset Key When attempting to sign-on, an Operator ID will be suspended after three (3) incorrect attempts. Reset If there is a problem with the daily password, SBSA will, upon instruction, reset the daily password to the Operator Reset Key, and a fee will be levied as specified on the pricing brochure. If there is a problem with the Operator Reset Key, SBSA will, upon instruction, reset the Operator Reset Key to allow the operator to select a new Operator Reset Key, and a fee will be levied as specified on the pricing brochure. Criteria Daily Password Should be a combination of letters of the alphabet and numbers; Must be at least 6 characters and a maximum of 8 characters long; Must not be months of the year or days of the week (note: if an attempted new password starts with the first three letters of any month or day, it will be rejected e.g. APRicot, DECimal, MONkey); Series of consecutive letters of the keyboard will be rejected, e.g. 123456, qwerty, etc.; Maximum number of consecutive repetition of a letter allowed is 2, e.g. appples and workkk is not allowed, but apples and work88 is allowed; The password must not be the same or similar to the previous six (6) passwords. The password can be changed by the operator only once a day; Passwords containing the Operator ID will not be allowed; Passwords containing the following strings will not be accepted: o IBM TEST SYS LOG SIGN TSO PASS NEW VTAM NET APPL ROS BASIC o JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC XXX ASDF 1234 o ZXC MNB LKJ POI 123 987 098 MON TUE WED THU FRI SAT SUN o CADAM VALID DEMO GAME QWE ASD FOCUS CICS Operator Reset Key MUST BE a minimum of 3 characters and a maximum of 8 characters. MUST BE a word that has meaning to you, and is easy to remember without having to write it down. 57 Operational Regulations Version 2012-06-18 MAY BE either alpha or numeric characters, or a combination of both. MAY NOT contain 3 consecutive characters; e.g. ‘apples’ allowed but ‘aaa’ not. MAY NOT be your Operator ID or User ID ROLES OF PERSONNEL & SEGREGATION OF DUTIES Role Authorised Signatory Responsibility Task(s) Act on behalf of the Conclude and sign the Agreement Principal Appoint and terminate the appointment of the Designated Person(s) Generally perform any act or do anything required or prescribed by the Agreement Participant Authorised Act on behalf of the Appoint and terminate the appointment of the Signatory Participant(s) Participant’s Designated Person(s) Designated Person Control the Define, manage and authorise additions, management, amendments and deletions of: communication and Accounts associated risk of the Creditor/Debtor details Service within their own Operators legal entity Passwords Limits Access Ensure that the User Release levels Profile is reviewed for Ensure that the Service is not used by any validity through the use person(s) other than those authorised of the User Portfolio Ensure successful release and processing of reports. all transfers, payments and collections Ensure appropriate use of the Service within specified Cut-Off Times Receive all communication, passwords and IDs from SBSA Provide all instructions to SBSA Ensure that the transactional limits on accounts are adequate and in line with requirements Operator Access, operate and transact on the Service as specified by the Designated Person Use the Service within the parameters of the Operational Regulations Ensure successful release and processing of all transfers, payments and collections by SBSA through proactively monitoring of the Service LIMITS A subsystem limit is the maximum value of all transactions that can be processed per day and is subject to approval by SBSA. The Principal and/or Participant(s) must ensure that the transactional limits on accounts are adequate and in line with requirements ACCESS Access to functionality and accounts can be restricted per operator as specified by the Designated Person(s). All accounts to be accessed are loaded to the profile, with selected accounts loaded to specific operators depending upon their duties. For example, treasury staff may have access to all 58 Operational Regulations Version 2012-06-18 accounts; creditor staff would only be given access to accounts effecting payments to creditors, etc. RELEASE LEVELS Release levels govern which Operator(s) are required for authorizing the release of transactional batches and loading of creditor/debtor for processing. The release level can be seen as an electronic signature and should be allocated appropriately. ZERO RELEASE LEVELS The Zero Release option is only available for Host-to-Host clients. These clients do not log onto Standard Bank Business Online to release a payment/collection. Their mainframe application is automated to transmit the payment/collection files directly to SBSA. The Principal and/or Participant(s) who select the Zero Release option must manage the additional risk by ensuring that adequate internal controls are in place to prevent unauthorised manipulation of the data prior to transmission to SBSA. They are responsible for ensuring that their IT environment, along with all associated business process interfaces, are secure. PROCESSING OF TRANSACTIONS HASH TOTAL Hash total is a value added facility that allows the client to verify that a file submitted to SBSA has not been tampered with. The file must be created offline in order for the hash total facility to be used. The Hash total will be calculated by the offline and online system as follows: Hash Total is the sum of all the transaction amounts multiplied by the individual account numbers in a file. The operator will be forced to export the Hash Total for Domestic Banking which SBSA calculates. The operator will then need to compare the Hash Total (displayed as a single number) against the offline system Hash Total. Fraudulent Transactions SBSA shall not be liable for fraudulent transaction taken place within the organisation of the Principal or Participant(s) unless so cause by SBSA’s negligence or willful misconduct. SBSA shall take the appropriate internal measures to assist the Principal or Participant(s) with the recover of the funds and the mitigation of the loss suffered due to the fraud, however SBSA does not guarantee the success of retrieving the respective funds. Kindly take note that SBSA shall only be able to reverse such funds on presentation of the relevant subpoenas and court order instruction SBSA to disclose confidential information and reverse the said funds. 59 Operational Regulations Version 2012-06-18 5. RECORD MAINTENANCE Regular reviews of the Service must be conducted by the Principal and/or Participant(s) to ensure updated records are maintained for: Accounts Creditor/ Debtor details Operators Passwords Limits Access Segregation of Duties and Release Levels This information can be found under the Administration Module Function on Domestic Banking. 6. COMMUNICATION All communication to SBSA is required to be: In writing Presented on a company letterhead Signed by the required person – Designated Person/ Authorised Signatory/ Participant Authorised Signatory Delivered/mailed/ faxed to SBSA Received within a reasonable time frame by SBSA in order to undertake the required action All communication from SBSA to operators will be: Via the Message Alerts facility All communication from SBSA to designated persons will be: Via email Via letter for formal and/or confidential information. Telephonic communication with the Call Centre is recorded and stored to facilitate accuracy and dispute resolution. 7. FEES SBSA shall give the Principal and /or Participant(s) 30 days’ notice of a change to the fees. SBSA reserves the right to debit any account in the name of the Principal or Participant in respect of fees. 8. DISCLAIMER Jurisdictional disclaimer IMPORTANT NOTICE: The investment services and information (the "services") available on our website are not targeted at residents outside of the Republic of South Africa. In particular, nothing on our website should be interpreted as targeting persons or entities in the United States of America, Canada, the United Kingdom, Australia and Hong Kong. Applicants may be granted access to the services once we are satisfied that such access would not be in breach of the relevant laws of the jurisdiction in which the applicant is resident, registered or domiciled. 60 Operational Regulations Version 2012-06-18 9. TERM AND CONDITIONS Conditions of access Acceptance These conditions become effective when you access our website for the first time and constitute a binding agreement between us (The Standard Bank of South Africa Limited) and yourself, which will always prevail. The current version of these conditions will govern our respective rights and obligations each time you access our website. Online services Our online products and services (online services) are subject to registration procedures and approvals, which we may accept or reject at our sole discretion. These online services are governed by separate terms and conditions (service terms) that are available on the relevant sections of our website where the online services are provided. In the event of conflict between these conditions and the service terms, the provisions of the service terms will apply. Nature of information on our website All information on our website is only intended to provide you with general information about us, our products, services and objectives. Nothing on our website should be treated as an offer but merely as an invitation to do business with us. We may provide information from time to time on: projected revenues, income, earnings per share, capital expenditures, dividends, capital structure or other financial items; the plans, objectives and/or projections of the bank for future operations, including those relating to the services of the bank; or future economic performance. Such projections are only estimates. Actual events or results may differ. All information is provided "as is" and should not be treated as professional or investment advice of any kind. You should consult your own professional advisors before relying on any information on this site. Your privacy and security Our commitment to your privacy and the security of your personal information is outlined in our privacy and security statement. Amendments to these conditions We may amend these conditions from time to time. By accessing our website you are bound to the version of the conditions published at the time of any visit to our website. You agree to view the current version each time you access the site. A certificate signed by the administrator responsible for maintaining our website will be prima facie proof of the date of publication and content of the current version and all previous versions of the conditions. Information feeds We may use the services of other organisations to provide information on our website. We have no control over this information and make no representations or warranties of any nature as to its accuracy, appropriateness or correctness. You agree that such information is provided "as is" and we will not be directly or indirectly liable for any damages that may arise from your reliance on it. All quotes, news, market information or data shown on the site by way of live information feeds are delayed by at least 15 minutes unless otherwise stated. You should always select the "refresh" or similar page update function on your Internet browser to ensure that the information you are viewing is the most current. 61 Operational Regulations Version 2012-06-18 Linked third party sites Our website may contain links to other websites with information and material produced by other parties. While we try to provide links only to reputable websites, we cannot accept responsibility or liability for the information provided on other websites. A link from our site to any other website does not mean that we have scrutinised or endorsed the owners or administrators of the websites or their business or security practices and operations. Permission for hyperlinks, deep linking, crawlers and metatags Nobody may establish a hyperlink, frame, metatag or similar reference, whether electronically or otherwise (collectively referred to as linking), to our website or any subsidiary pages before receiving our prior written approval, which may be withheld or granted subject to the conditions we specify from time to time. An application for linking must be submitted to webmaster@sbic.co.za. Once received we will do our best to respond and enter into further discussions with you. If you don't get a written response from us within five business days, consider your request as having been rejected. Breach of these conditions entitles us to take legal action without prior notice to you and you agree to reimburse the costs associated with such legal action to us on an attorney and own client scale. Our intellectual property We retain all copyright and other intellectual property rights in all material, including logos and other graphics and multimedia works published on or via our website. You are authorised to view and download one copy to a local hard drive or disk, print and make copies of such printouts, provided that: the material is used for considering use of the online services and for no other commercial purposes; any reproduction of our proprietary material from this site or portion of it must include our copyright notice in its entirety. The logos and trademarks shown on this site are our registered and unregistered trademarks or that of third parties. Nothing on this site should be construed as granting any license or right to use any trademark without our prior written permission and/or that of third parties, as the case may be. You may not, without our prior written permission, use our intellectual property or that of third parties for any other purposes. An application to use our intellectual property must be submitted to webmaster@sbic.co.za. Upon receiving your application we will do our best to respond and enter into further discussions with you. If you don't get a written response from us within five business days, consider your request as having been rejected. Irrespective of the existence of copyright, you acknowledge that we are the proprietor of all material on the site, whether it constitutes confidential information or not, and that you have no right, title or interest in any such material. Software You are required to use and maintain hardware and software of sufficient quality and performance capability and to use only the latest versions of Microsoft Internet Explorer and/or Netscape browsers as indicated. Your failure to use these browsers may result in a higher security risk and/or cause some or all of the functionality of the site not to operate properly or at all. Users are advised to use only the Sun Java™ Runtime Environment distributed by the bank on the Business Online installation CD. Automatic and manual upgrades of the Java™ Runtime Environment may be performed once the bank has approved them for use with the current version of Business Online software. No support will be given to users that have unendorsed versions of the Java™ Runtime Environment. Software, if any, made available for download on or via our site is governed by licence conditions that establish a legal relationship with the licensor. You indemnify us against any breach of these licence conditions. We give no warranty and make no representation, whether express or implied, as to the quality of fitness for purpose or the use of such software. 62 Operational Regulations Version 2012-06-18 No warranty, whether express or implied, is given that any files, downloads or applications available via this site are free of viruses, trojans, bombs, time-locks or any other data or code which has the ability to corrupt or affect the operation of your computer, database, network or other information system. Transmission of information Information transmitted via an unsecured link over the Internet, including email, is susceptible to potential unlawful access, distortion or monitoring. The measures we have taken to limit these risks are outlined in our privacy and security statement. As we do not have the ability to prevent unlawful activities by unscrupulous persons, you accept that we cannot be held liable for any loss, harm or damage suffered by you as a result. To limit these risks, we may request independent verification of any information transmitted by you via the site or email from time to time. Termination, suspension and limitation We may modify, suspend or discontinue the site, whether temporarily or permanently, without notice. We may also impose limits or conditions on the right to certain services, features or functions and we may restrict access to parts of or all of the services on the site. No warranties or representations We do not warrant that the site or online services will be error-free or will meet any particular criteria of accuracy, completeness or reliability of information, performance or quality. We expressly disclaim all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security and accuracy. Disclaimer and limitation of liability Although we have taken care to ensure that the content on our website is accurate and that you suffer no loss or damage as a result of your use of our website, our website and the online services are provided "as is". Use of our site and the online services is entirely at your own risk. You assume full responsibility for the risk or loss resulting from your use of our site and your reliance on the material and information contained on it. We and our affiliates, shareholders, agents, consultants or employees are not liable for any damages whatsoever relating to your use of our site or the online services or the information contained on our site or your inability to use our site or the online services. This includes, without limitation, any direct, indirect, special, incidental, consequential or punitive damages, whether arising out of contract, statute, delict or otherwise and regardless of whether we were expressly advised of the possibility of such loss or damage. Without derogating from the generality of the above, we will not be liable for: Any interruption, malfunction, downtime or other failure of the site or online services, our system, databases or any of its components, for whatever reason; Any loss or damage arising from your orders, investment decisions, purchases or disposal of goods and services, including financial instrument(s) or currency, from third parties, based on the information provided on this site; Any loss or damage with regard to customer data or other data directly or indirectly caused by malfunction of our system, third party systems, power failures, unlawful access to or theft of data, computer viruses or destructive code on our system or third party systems; programming defects; negligence on our part; Any interruption, malfunction, downtime or other failure of goods or services provided by third parties, including, without limitation, third party systems such as the public switched telecommunication service providers (currently Telkom), internet service providers, electricity suppliers (currently Eskom), local authorities and certification authorities; 63 Operational Regulations Any event over which we have no direct control. Version 2012-06-18 How disputes will be resolved Subject to the relevant service terms, all disputes arising as a result of your use of the site or on the interpretation of these conditions or on any matter which in terms of the conditions requires agreement by the parties, (other than where an interdict is sought or urgent relief may be obtained from a court of competent jurisdiction), will be submitted to and decided by arbitration. That arbitration will be held with only the parties and their representatives present at the offices of the Arbitration Foundation of Southern Africa, Sandton, Gauteng, South Africa. The arbitration will be governed by the rules of the Arbitration Foundation in terms of South African law and will be heard by an arbitrator or arbitrators appointed by the foundation. Either party will be entitled to have the award made an order of court of competent jurisdiction. The parties will keep the evidence in the arbitration proceedings and any order made by any arbitrator confidential unless otherwise contemplated. The arbitrator will have the power to give default judgement if any party fails to make submissions on due date and/or fails to appear at the arbitration. Capacity to enter into agreements You hereby warrant to us that you have the required legal capacity to enter into and be bound by contractual terms. Minors must be assisted by their legal guardians when reading these conditions. If you are unsure whether you have the legal capacity to enter into agreements, contact someone able to provide you with this information before you continue using our site. Certificate A certificate signed by us will constitute prima facie proof of the operation or functionality of the online services or any part thereof and the contents of any information displayed on the site on a given date. Our address for notices and service of legal process Our chosen address for any legal notice is: Director, Legal Services Group Legal Division Standard Bank Centre 9th Floor 5 Simmonds Street Johannesburg The law governing our relationship The conditions will be governed and construed in accordance with the law of the Republic of South Africa without reference to any conflict of law provisions. General provisions The headings of the clauses in the conditions are provided for convenience and ease of reference only and will not be used to interpret, modify or amplify the terms of the conditions. Where any dates or times need to be calculated in terms of the conditions, the international standard time: GMT plus two hours shall be used. No failure or delay by us to exercise any of our rights will be construed as a waiver of any such right, whether this is done expressly or implied, nor will it affect the validity of any part these conditions or prejudice our right to take subsequent action against you. If any of these terms, conditions or provisions are held to be invalid, unlawful or unenforceable; the term, condition or provision will be deleted from the remaining terms, conditions and provisions which will continue to be valid to the full extent permitted by law. 64 Operational Regulations Version 2012-06-18 If you have any questions or do not understand anything in these conditions please send an email to webmaster@sbic.co.za and we will respond to you as soon as possible. 10. PRIVACY AND SECURITY STATEMENT Your right to privacy and security is very important to us. We, The Standard Bank of South Africa Limited, treat personal information obtained through the use of our website and our applications as private and confidential and are committed to providing you with secure access to our online services. How we use the personal information we collect We need to collect personal, technical or other information if we are to meet our obligations to you, to follow your instructions, to inform you of new services and to ensure that our business is geared towards your needs. This is particularly necessary with respect to technical information concerning your hardware/software, such as operating system, memory, hard drive capacity, ISP, network settings etc. This latter information will not be used for marketing purposes, but is required to optimise capacity and performance of our services. Use of technology to monitor your use of our website We gather and analyse information on our visitors' routine use of our website. We use this information to monitor which areas of the website are most frequently visited, to assist us to continue developing a value-added service. This information is pooled so individual personal information, behaviour or patterns cannot be identified. Cookies On some parts of our website we use so-called "cookie" technology. Cookie technology consists of small pieces of data or a small text file which is given to your browser by our Webserver when you visit our website. This data is stored on your browser. The cookie is sent back to our Webserver each time you visit our website. Cookies are not computer programs and do not run on a computer like programs do. They cannot gather information or function on their own. Cookies enable us to provide a more valuable online experience to you. While you can set up your Internet browser to disable cookie technology, we do not recommend that you do this since some parts of this website and our online services may not function properly, or at all. Technical Information and Diagnostics Tools With regard the technical information referred to above, we need to gather and assess various information including, without limitation, the operating system, Internet browser, memory, hard drive capacity, central processing unit type and network settings used by you when accessing services provided by us. This information is needed to optimise capacity and performance of our services and to assess the introduction of new services and functionality. In addition, it may be used to assess compliance with the provisions of Chapter 9 relating to hardware and software quality and performance capability. This technical information is gathered both on an ongoing and ad hoc basis and various tools are employed, including Remote Diagnostic Tools located on the computer/s you use to access our services. All information gathered will be retained in a secure environment, only used for the stated purpose and otherwise in accordance with this privacy and security statement. Mail, email or SMS promotions Provided that you have agreed to this, we may use your personal or other information to send you information on new services or products that may be of interest to you and from time to time will mail, email or SMS information to you about us, our products and services, or our partners and their products or services. If you do not wish to continue receiving this information you may contact us and we will remove you from our mailing list. Third parties 65 Operational Regulations Version 2012-06-18 Whenever we commission other organisations to provide support services to us, we will bind them to our privacy policies as far as they may be required to have access to our customers' personal information to perform such services. Our website may contain links to or from other sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the security or privacy practices employed by other sites. We recommend that you always read the privacy and security statements on such sites. When we will disclose personal Information without consent we will not disclose personal information to anyone outside SBSA without your permission unless: we are compelled to do so by law or in terms of a court order; it is in the public interest to do so; it is necessary to protect our rights. Storing personal information Personal information we collect via the website is stored in a secure environment and is not available to any person outside SBSA. Our security practices We are committed to providing secure online services. As such, all interactions with our transactional sites are protected through encryption that complies with international standards. Encryption is used to protect the transmission of your personal information when completing online application forms. Our Internet servers are protected by firewalls and intrusion detection systems. Access to information on these servers is restricted to authorized personnel only. We have also employed the services of independent security experts to test and advise us on the security of our systems. To ensure that you benefit from our security you should read the security tips we post on our site from time to time. Privacy and security statements applying to specific online services Different online services and Standard Bank entities may have their own privacy and security policies because the nature of their service or products demands a deviation from our general policy. These specific policies will apply to and exclusively govern your use of the particular online service. Right to amend this privacy and security statement We reserve the right to amend this privacy and security statement at any time. All amendments to this privacy and security statement will be posted on the website. Unless otherwise stated, the current version shall supersede and replace all previous versions of this privacy and security statement. If you have any questions about this privacy and security statements please email us on webmaster@sbic.co.za. 66 Operational Regulations Version 2012-06-18 11. APPENDIX “A” DEBIT ORDER INSTRUCTION1 FROM: (NAME OF DEBTOR) ………………………………………………. (ADDRESS) ………..……………………………………………….. …………………………………………………. …………………………………………………. DATE: ………………….. TO: XYZ Company Limited Main Street Anycity Dear Sirs MY AGREEMENT ‘PROPOSAL, ETC’ DATED ………………………… The details of my/our bank account are as follows: BANK …………………………………………………… BRANCH NAME AND TOWN …………………………………………………… BRANCH NUMBER ACCOUNT NUMBER TYPE OF ACCOUNT Current (Cheque)/Savings/Transmission/(Delete where not applicable) I/We hereby request, ‘instruct’ and authorise you to draw against my/our account with the abovementioned bank (or any other bank or branch to which I/we may transfer my/our account) the sum of R ………………………………………………….. (and amount in words), ‘the amount necessary for payment of the monthly instalment/premium due in respect of the abovementioned agreement/insurance’ on ………….. day of each and every month commencing on ……………………….. and continuing (as the case may be). All such withdrawals from my/our bank account by you shall be treated as though they had been signed by me/us personally. I/We understand that the withdrawals hereby authorised will be processed by computer through a system provided by the South African Banks, and I also understand that details of each withdrawal will be printed on my bank statement or on an accompanying voucher. I/We agree to pay any bank charges relating to this debit order instruction. This authority may be cancelled by me/us by giving you thirty days notice in writing, sent by prepaid registered post, but I/we understand that I/we shall not be entitled to any refund of amounts which you have withdrawn while this authority was in force if such amounts were legally owing to you. Receipt of this instruction by you shall be regarded as receipt thereof by my/our bank (whichever it is or will be). ASSIGNMENT: I/We acknowledge that the party hereby authorised to effect the drawing/s against my/our account may not be cede or assign any of its rights to any of its rights to ant third party without my/our prior consent and the I/we may not delegate any of my/our obligations in terms of this contract/authority to any third party without prior written consent of the authorised party. Signed ……………………………….on this …………….. day of ……………………………………….. …………………………………………………………… SIGNATURE AS USED FOR SIGNING CHEQUES …………………………………….. ASSISTED BY (Where legally necessary) …………………………… CAPACITY NOTE: A cancelled cheque should be attached for bank identification purposes. (Current Accounts only). 67 Operational Regulations Version 2012-06-18 The User may add to the above minimum requirements. 12. APPENDIX “B” DEBIT ORDER INSTRUCTION ANNEXURE B AUTHORITY2 AND MANDATE FOR PAYMENT INSTRUCTIONS A. AUTHORITY GIVEN BY: (NAME OF ACCOUNTHOLDER) _______________________________________ (ADDRESS) _____________________________________________________________________ (BANK ACCOUNT DETAILS): BANK NAME ______________________________________________ BRANCH NAME AND TOWN ______________________________________________ BRANCH NUMBER ACCOUNT NUMBER TYPE OF ACCOUNT: CURRENT (CHEQUE)/SAVINGS/TRANSMISSION)* *(DELETE WHERE NOT APPLICABLE) DATE: _______________________________ TO: (NAME OF BENEFICIARY)_______________________________________________ (ADDRESS) ________________________________________________ ________________________________________________ REFER TO OUR CONTRACT DATED _____________________ (“the Agreement”) I/We hereby authorise you to issue and deliver payment instructions to your banker for collection against my/our abovementioned account at my/our abovementioned bank on condition that the sum of such payment instructions will never exceed my our obligations as agreed to in the Agreement. 2 This authority and mandate must be given in writing or electronically in terms of the Electronic Communications and Transaction Act, 2002, Chapter 3, Part 1. 68 Operational Regulations Version 2012-06-18 The individual payment instructions so authorised to be issued must be issued and delivered monthly/bi-monthly/three-monthly/six-monthly/annually/weekly/bi-weekly* (interval) on or after the dates when the obligation in terms of the Agreement is due and the amount of each individual payment instruction may not be more or less than the obligation due. *(delete what is not applicable) The payment instructions so authorised to be issued must carry a number, which number must be included in the said payment instructions and if provided to you should enable you to identify the Agreement. The said number should be added to this form in section E before the issuing of any payment instruction and communicated to me directly after having been completed by you. I/we agree that the first payment instruction will be issued and delivered on or after _________________ (date). Subsequent payment instructions will continue to be delivered in terms of this authority until the obligations in terms of the Agreement have been paid or until this authority is cancelled by me/us by giving you notice in writing of not less than the interval (as indicated in the previous clause) and sent by prepaid registered post or delivered to your address indicated above. B. MANDATE I/we acknowledge that all payment instructions issued by you shall be treated by my/our abovementioned bank as if the instructions had been issued by me/us personally. C. CANCELLATION I/we agree that although this authority and mandate may be cancelled by me/us, such cancellation will not cancel the Agreement. I/we also understand that I/we cannot reclaim amounts, which have been withdrawn from my/our account (paid) in terms of this authority and mandate if such amounts were legally owing to you. D. ASSIGNMENT: I/We acknowledge that this authority may be ceded or assigned to a third party if the Agreement is also ceded or assigned to that third party. 69 Operational Regulations Version 2012-06-18 NOTE: The NAEDO and/or EFT user may add or delete (at its own risk) from the above minimum requirements. Signed ……………………………………… on this ……………. day of ………………………………. ……………………………………………. SIGNATURE AS USED FOR OPERATING ON THE ACCOUNT ………………………………………………………… ………………………………….. ASSISTED BY FOR OFFICE USE E. AGREEMENT REFERENCENUMBER THE AGREEMENT REFERENCE NUMBER IS ……………………….. 70
