For any native bank, maintaining a foreign account and handling it without any discrepancies is highly impossible with manual reconciliation. Especially, while dealing with messages like MT940 and MT950.
“Ascent AutoRecon© complies to the regulations of countries like UAE, Saudi Arabia, Oman, Bahrain, Qatar, Kenya and Malaysia among others is an absolute automated solution, in terms of providing an end-to-end reconciliation solution for closing all complex Nostro Vostro transactions.”
Settlement Issues of Nostro Accounts
Most of the banks receive Nostro account statements through SWIFT MT940 and MT950. Banks without SWIFT get a soft copy of the statement either by email or a hard copy delivered from the local branch of the correspondent bank.
Banks have to maintain the replica of Nostro account statements in their internal books and manually reconciling these accounts could be troublesome. Nostro Reconciliation Software is beneficial to banks in such scenarios.
Unidentified funds are a common scenario for Nostro reconciliation, where banks make payment to the incorrect beneficiary. When banks fail in returning the money, it will attract charges or interest for use of funds.
Similarly, banks have to ensure that their interbank cash flows from FX Spot, FX Forward, FX Swaps, borrowings, placements, derivative trades and merchant flows like foreign bills purchased/realized, foreign inward/outward remittances etc. are received and paid appropriately. Some of the functionalities of AutoRecon Nostro Reconciliation software includes:
Ascent banking reconciliation software is designed to resolve the above-mentioned settlement issues of Nostro & Vostro accounts, it is different from other software because of the following process:
- Nostro reconciliation software helps in Connecting T+0 MT940/950, T+0 & T+1 GL Nostro Mirror A/C and T + 1 Nostro A/C Statement for both credit and debit cards
- Decoding SWIFT messages using rich GUI and algorithms
- Pre-formatting the data from varied SWIFT messages
- Reconciling the data with General Ledger
- Filtering unmatched transactions and identifying exception cases
- Matching bank statement with GL
- Proofing closing balance matching with the opening balance
- Compatible to latest version MT9360