From there, payment plants can consolidate account statements received from the various participating subsidiaries and group them according to pre-defined rules in order to send transactions to partner banks in accordance with contractual agreements (financing and price conditions). Because companies can do more from fewer accounts, this may include sending and receiving payments to a given financial account on behalf of other group companies. Once the company has adopted a Payments-On-Behalf-Of (POBO) model, the payment plant uses its own accounts to make the payment and then sends a position to the bank`s internal operating unit account. The payment plant is considered to be the agent of the participating entities and may therefore charge an administrative fee for the services provided. The agreement between a payment plant and its participating companies is generally documented by a formal contract or agreement The ramp-up of Joint Global Implementation (CGI) as an international standard of payments, which is actively supported by banks around the world, has opened up new opportunities for companies to streamline their lending and receivable processes (AP/AR). Do you want to streamline the number of bank accounts you hold to optimize your bank fees? The payment feature in the Allmybanks software application allows you to achieve this goal. The transformation of the Treasury remains one of the treasurers` main objectives, as they focus on efficiencies in their lawsuits and the fight against fraud and cybercrime, while creating account structures that reduce bank costs and fees. In an increasingly globalized world, the desire to manage cash at the regional and global level instead of having local accounts is growing. The digital economy and open banking offer new opportunities and real-time cash starts to grow as the natural next step in optimizing cash organizations. The establishment of a centralized cash structure must take into account many factors, such as. B: “Recipients must not only be able to identify the incoming payment, but it is important that they are treated as domestic payments and not as cross-border payments, in order to prevent the recipient from being subject to royalties. Similarly, processing and clearing time should not be affected by the implementation of a POBO structure to avoid working capital problems and the risk of late payment.” However, such an approach may not be feasible for several reasons.
First, the recipient of the payment often wants to know who is the actual sender of the payment and not just who is the liquidator. Where possible, this can be mitigated by providing separate payment information to the recipient. Second, if such an approach appears to be consistent with the letter of the KYC/AML guidelines, it may be contrary to the spirit of the same guidelines. The question is whether a bank is responsible for overseeing the activities of the underlying payment issuer.