Cash Management User Guide Colombia - Treasury and Trade Solutions - Citi.com
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Cash Management User Guide Colombia Treasury and Trade Solutions Cash Management User Guide – Colombia – V2.0 - November 2020 1|Page
Table of Contents
Introduction........................................................................................................................................3
I. Payment Services ...................................................................................................................4
A. Types of Payment Services in Colombia ............................................................................4
B. Sending a Payment ............................................................................................................4
C. Beneficiary Notifications .....................................................................................................4
D. Revocation, Modification and Rejection of Payments .........................................................5
E. Payable Checks .................................................................................................................5
F. ACH Payments through PSE ..............................................................................................7
G. Payments through Mispagosaldia® .....................................................................................7
H. Availability of Payments ......................................................................................................8
I. Payments – Value Added Services.....................................................................................8
III. Receivables Services ............................................................................................................10
A. Receiving an ACH Payment .............................................................................................10
B. Check Deposits Channel ..................................................................................................10
C. Physical, Electronic, and Web Services Collections..........................................................10
D. PSE Collections Service ...................................................................................................11
E. ACH Debit Service............................................................................................................11
F. Citi® One Receivables ......................................................................................................14
G. Citi® Present and Pay .......................................................................................................15
H. Citi® Smart Match .............................................................................................................15
IV. Manual Initiation of Instructions ..........................................................................................17
V. Information Services: Data Aggregation - Infopool ............................................................20
A. Consolidation Service .......................................................................................................20
B. Procedure.........................................................................................................................20
VI Liquidity Management Services ...........................................................................................21
A. Zero Balance Account / Smart Account ............................................................................21
VII Conclusion ............................................................................................................................22
Cash Management User Guide – Colombia – V2.0 - November 2020 2|PageIntroduction Thank you for choosing Citi’s Treasury and Trade Solutions (TTS) for your cash management business needs. The objective of this Cash Management User Guide (Guide) is to provide you with a manual containing detailed information of Services available to you and is to be read together with your Account terms and conditions. In this Guide, Citibank Colombia S.A., Citi and Bank may be used interchangeably. This Guide may be updated from time to time and any changes will be communicated through our regular channels. Cash Management User Guide – Colombia – V2.0 - November 2020 3|Page
I. Payment Services
Payments can be instructed through the following channels: CitiDirect BE® and CitiConnect®.
A. Types of Payment Services in Colombia
Automated Clearing House (ACH): Interbank electronic transfers payment system
Sebra Transfers/Real Time Gross Settlement (RTGS):Transfers of funds, large or small, on a
real-time basis to accounts at other domestic financial institutions
Book to Book: Transfers between Citi accounts
Checks: Negotiable paper-based instruments that can be passed from one person or entity to
another and exchanged for money. A check unconditionally instructs a bank to pay a specific
amount in a specific currency to a specified person, to a “bearer”, or to “cash”. (See Section
E below)
B. Sending a Payment
1. The Customer instructs1 Citi to pay the beneficiary through CitiDirect BE®, CitiConnect®, or
SWIFT using files or a user interface, or via a Manually Initiated Funds Transfer (MIFT), prior
to the cut-off time. The instruction must be formatted according to market specifications and
as outlined during the implementation stage.
2. Citi forwards the instruction to the relevant payment system for further processing.
3. The payment system forwards the instruction to the beneficiary bank based on the locally
defined clearing cycle.
4. The beneficiary bank then credits the beneficiary account.
C. Beneficiary Notifications
Beneficiary notifications can be used to inform or notify beneficiaries of the status and details of
payments to ease the reconciliation of transactions. Beneficiary notifications are emailed to the
respective beneficiaries, who can access payment details through a link to the Online Payment
Channel (OLPC).
1
The Customer may require one or more authorization levels for payments and may establish different approval limits. All transactions
require at least one originator and one user with the appropriate approval level. Each authorized approver is issued and must use a
unique identification code and a dynamic password, or other procedure defined by Citi. The security of payment information is provided
through Customer-controlled authorizations and by Citi’s internal security system .
Cash Management User Guide – Colombia – V2.0 - November 2020 4|PageD. Revocation, Modification and Rejection of Payments
Each payment instruction confirmed by the Customer in CitiDirect BE® and/or CitiConnect® and
received by Citi is irrevocable upon receipt of such instruction by Citi.
If the payment instruction for credit to an account has been sent to the intended beneficiary and
the Customer wishes to revoke such instruction, a written request must be sent to Citi (signed by
legal representative) to reverse the respective transaction. In such cases, Citi will put forth its best
efforts to arrange for the pertinent entities to process the reversal. However, this does not imply
any obligation whatsoever vis-a-vis the Customer or third parties (including Citi) for the result of
such a process.
If the payment instruction has not been transmitted to the beneficiary (payment instructions with
future date) the Customer can choose to cancel or to modify the payment instruction through the
system (CitiDirect BE® or CitiConnect®).
E. Payable Checks
The following types of checks are available:
1. Cashier's checks (Paylink Checks): Checks instructed through the CitiDirect BE ® platform to
be issued in a specific local branch
2. Standard checks: Negotiable instruments, which can be passed from one person/entity to
another and exchanged for money
Citi may or may not accept deposits in checks from other locations
Issuance of Checks
Citi reserves the right to issue checks requested by the Customer with negotiability or other legal
restrictions, or as a crossed check, as it deems advisable.
If a check is not claimed within six months of issuance, Citi will destroy the check. Once the check
is destroyed, Citi will proceed on the same date to process the credit for the pertinent amount to
the Customer's account.
Cash Management User Guide – Colombia – V2.0 - November 2020 5|PageDelivery of Checks
Paylink Checks will be delivered according to the following procedures:
1. For the delivery of checks whose beneficiary is an individual, the beneficiary must present to
Citi his or her original citizen's identification document (ID) and a photocopy of it that Citi must
retain as supporting documentation for the delivery of the check(s).
2. For the delivery of checks to an individual other than the beneficiary, Citi will deliver the check
to the third party only with an authorization issued by any persons authorized to draw on the
Customer's Account.
3. For the delivery of checks whose beneficiary is a legal entity, the request for check delivery
must be made by a legal representative who must present an original of the entity’s certificate
of existence, and evidence that he or she is a legal representative of the legal entity. These
documents are issued by the Chamber of Commerce or the pertinent entity of the city where
the company is domiciled and valid for not more than 30 calendar days. Additionally, he or
she must provide the original and a copy of his or citizen's identification document (ID).
4. When the person who requests the check delivery is an individual other than the entity's legal
representative, he or she must deliver to Citi:
a. A power of attorney signed by the Customer’s legal representative or an authorized
signatory on file with Citi or in accordance with the Account terms for the Customer's
Account. The power of attorney will specify the name and identity document that must be
presented to claim the check and photocopy of the individual’s citizenship identification
document (ID) must be attached.
or
b. A power of attorney signed by the entity’s legal representative, and notarized, identifying
and authorizing the individual to claim the check and specifying the required identity
document. A photocopy of the individual’s citizenship ID and the original of the legal
entity’s certificate of existence must be attached, plus a copy of the ID document of the
entity’s legal representative.
Checks will be delivered if the required documents have been attached to Citi’s satisfaction.
Before delivering the checks, Citi, if it deems necessary, may confirm beneficiary information
by calling the telephone numbers registered by the Customer in Citi's system.
Stop Payment Request on Payable Checks
1. The Customer can request that the bank stop payment on any payable check, in accordance
with the bank procedures and applicable local laws.
2. The Customer communicates the stop payments instructions to Citi in writing. The stop
payment instructions will specify the serial number of the check, the date of issue, the
Cash Management User Guide – Colombia – V2.0 - November 2020 6|Pagebeneficiary’s name and the amount. Stop payment on checks will be processed based on the
information specified in the stop payment instructions.
3. If the check to be stopped has not been paid, the Bank will refund the proceeds of all the stop
payment requests and cancellations to the account from which the payments were derived,
except in cases where the Customer requests a replacement payable check to be issued.
F. ACH Payments through PSE
The Customer can execute electronic payments via ACH by direct debit to their account through
the PSE Payments System using the PSE button found online for services, products, as well as
e-commerce. The Customer also can prepare, settle and pay mandatory social security (SOI) and
tax obligations (DIAN and SHD Bogota) via the electronic portals defined for such purposes.
Each payment instructed through the designated electronic channel will require at least one maker
and one checker to be processed.
Citi will provide the corresponding PSE user guide during the implementation process. In
accordance with ACH Colombia S.A. procedures, there is a 20-minute time limit for each
transaction once it is initiated. If the transaction is not authorized within the time limit, it will
automatically be rejected. This time limit is defined by ACH Colombia and may be modified in the
future.
For PSE payments related to the settlement and payment of mandatory social security
obligations, Citi and ACH Colombia S.A. will provide the necessary transaction information to the
social security entities in a timely manner to process the distribution and reconciliation of
payments through the direct or contingency channel.
G. Payments through Mispagosaldia®
Through the Mispagosaldia® corporate electronic payments system, the Customer can make
payments to public utilities and corporations registered in Mispagosaldia®. Through
Mispagosaldia®, the Customer can register contracts with service providers, modify the maximum
payment amount for each contract, withhold invoice payments, and as well as a consult the last
twelve months. The system sends notifications of the following events to the email address(es)
specified by the Customer:
1. Receipt of invoices corresponding to contracts specified by the Customer in the
Mispagosaldia® database
2. Due dates of current invoices two business days in advance, plus a report of invoices that
exceed the maximum specified payment amount or whose payment has been withheld by the
Customer
3. Payment of invoices will be notified at 2:00 p.m. on the due date
Cash Management User Guide – Colombia – V2.0 - November 2020 7|Page4. Invoices for services such as phone, gas, and water are paid at 1:00 p.m. on the business
day prior to their due date provided the amounts do not exceed the maximums specified by
the Customer.
Registration of invoices for payments scheduled on the Mispagosaldia® platform must be made
at least three business days prior to the due date so that the debit to the Customer’s Account can
be scheduled.
All registrations of bills must be completed in a maker and check process.
Additional information is included in a service guide that is provided by Citi.
H. Availability of Payments
CitiDirect BE®, CitiConnect® and Mispagosaldia® are available to the Customer fourteen hours
per day (from 7 a.m. to 9 p.m.) on business days. The schedules applicable are:
Transfers between Citibank accounts: Until 6:00 p.m. the same day.
Interbank transfers: Until 3:00 p.m. for same day interbank transfers, with a maximum daily
amount per beneficiary of COP 25,000,000,000 (twenty five billion pesos). For interbank
transaction over this limit, contact CitiService 2 hours prior to sending the transaction. Contact
your Citi Relationship Manager before 2:00 p.m. to request an extension for interbank
transfers. Transactions sent during the extended hours will incur a cost for the use of funds.
Cashier's checks: Until 2:00 p.m. the same day for pick up check at the Citibank Colombia
S.A. offices (restrictions and changes may apply).
PSE payment services are available from 8 a.m. to 3 p.m. on business days.
I. Payments – Value Added Services
Citi Payment Outlier Detection
Citi® Payment Outlier Detection is an informational tool that uses advanced analytics and
machine learning capabilities to help identify transactions relating to a Customers’ Accounts,
and/ or Accounts held by the Customer’s affiliates, subsidiaries and branches for which the
Customer is authorized to operate, that are materially different as compared to a Customer’s
Transaction History. When Citi Payment Outlier Detection is set to the online mode these
“outlier transactions” are flagged and actively held in a queue for further review and action by
the Customer’s designated payment reviewer(s) via Citi’s electronic banking platform, CitiDirect
BE®. If upon reviewing the transactions, the designated payment reviewer(s) determines that
the outlier transaction was unintended, the payment reviewer(s) will have the ability to cancel
the transaction, or approve and release it for further processing. Once the outlier transaction is
cancelled, it is not processed further by Citi’s payment processing systems.
Cash Management User Guide – Colombia – V2.0 - November 2020 8|PageCiti Payment Outlier Detection Features:
1. A unique baseline profile is generated for each Customer based on the transaction history of
their Accounts, and/ or Accounts held by the Customer’s affiliates, subsidiaries and
branches which the Customer is authorized to operate (the ‘Customers Transaction Data’),
which helps improve outlier detection accuracy.
2. Every transaction that is evaluated by Citi Payment Outlier Detection receives a risk score
(0-100) depending on how much it deviates from the relevant past payment history.
Customers can configure the Payment Outlier Detection Threshold that helps determine
which transactions are identified as outliers.
3. Once a potential outlier transaction is identified, the designated payment reviewer(s)
receives a notification and accesses the outlier review queue via CitiDirect BE.
4. Approved outliers refer to outlier transactions that the Customer’s designated payment
reviewer(s) has confirmed to be correct and approved for further processing. Rejected
outliers refer to outlier transactions that Customer’s designated payment reviewer(s) has
confirmed to be unintended.
5. In Online mode potential outlier transactions are flagged and actively held in a queue until
the transaction is actioned upon by the Customer’s designated payment reviewer(s), or until
the cut-off time (as described below) has been reached (in which case the outlier
transaction(s) are processed). Approved transactions are released and processed by Citi
while rejected transactions are cancelled.
6. In the Online mode, Customers can also set a cut-off time limit after which any held outlier
transactions will be automatically released for processing.
7. In Offline mode, potential outlier transactions are identified but not actively held in a queue
or otherwise stopped by Citi Payment Outlier Detection and continue to be processed.
Additionally, in the Offline mode, the machine learning algorithm of Citi Payment Outlier
Detection continues to allow the system to keep learning from the Customer’s Transaction
Data as well as from the responses provided by the designated payment reviewer(s), as part
of a continuous re-adjustment of the risk scoring routine based on the reviewer’s action.
8. Payment outlier reports are available via the CitiDirect BE Reports and Analytics function.
The execution of the payment transactions that are subject to Citi Payment Outlier Detection will
occur in accordance with Citi’s usual execution timeframes for the relevant payment type and
will be considered received by Citi as follows:
1. In respect of a transaction that is not flagged as an outlier, the time when Citi completes the
Citi Payment Outlier Detection process; and
2. In respect of a transaction that is flagged as an outlier the earlier of: (i) the time at which the
timeframe established by the Customer for the disposition of the outlier expires (if the
Customer takes no action), or (ii) the time when Citi receives approval from the Customer to
process the outlier.
It is important to note that Citi Outlier Payment Detection is an informational support tool and is
not guaranteed to detect or prevent fraud in any way.
Cash Management User Guide – Colombia – V2.0 - November 2020 9|PageIII. Receivables Services
A. Receiving an ACH Payment
1. The clearing house forwards the instruction to Citi based on the locally defined clearing cycle.
2. Citi credits the account of the Customer. Any rejections or returns by Citi will be credited back
to the payer account. The reason for the return is communicated to the payer.
B. Check Deposits Channel
Customers can deposit their check(s) at Citibank Colombia branches.
C. Physical, Electronic, and Web Services Collections
Citi provides the following collection services:
Physical collection of cash or checks using the CitiRecaudos service at Citibank Colombia
branches,) and correspondent banks (Via Baloto) and correspondent use agreement where
Citi has enabled this service (cash only at puntos Via Baloto). These collections require the
payer to provide a reference number or a barcode defined by the Customer (corresponding
to the reference number).
Electronic collection through Mispagosaldia® channels, which include the internet. Citi can
suspend or add new collection channels, notifying the Customer at least thirty calendar days
in advance. Electronic collections require the Customer to transmit its invoice database or
develop a Web Services connection for querying of invoices and contracts and enabling on-
line reporting between Citi and the Customer.
Citi will make the necessary Web Service connections to ensure that the collection process is
carried out pursuant to the terms established with the Customer on the Web Services
activation forms. Via Web Service, Citi enables connection in real-time to the Customer’s
server to obtain billing information and report payments in real-time to the Customer. As a
contingency for the Web Service, the parties can use a database of billings sent by the
Customer and the pertinent collections report will be sent at the close of each business day
in the Asobancaria file format defined in the activation form for collections via Mispagosaldia®.
1. Information Systems
Information about CitiRecaudos is available via CitiDirect BE®, Citi’s electronic
banking platform.
The Mispagosaldia® solution with Web Services provides real-time online reporting of
collections received by Citi. The Bank sends a daily file with information on all collections
processed during the day, up until 7:30 p.m. Since collections received are reported by two
means (CitiRecaudos and/or Mispagosaldia), the Customer can verify that the application of
any invoices or payments reported is not duplicated.
Cash Management User Guide – Colombia – V2.0 - November 2020 10 | P a g e2. Transaction Details
Citi performs the credit of funds incoming from collections via Mispagosaldia® as follows:
a. Collections made before 7:30 p.m. will be credited the same business day.
b. Collections made after 7:30 p.m. will be credited the following business day.
c. Collections made on weekends and holidays will be credited the first available business
day. Funds collected will be credited to the Account the Customer indicates. The amount
of the credit will correspond to the amount reported by the Customer in the daily collection
files.
d. The Customer will submit to Citi in a timely fashion its invoicing database to ensure that
Citi has invoice references at the time of payment by Mispagosaldia® users. If the
Customer does not provide to Citi with the invoices at the time such invoices are submitted
to its payers / customers, the Bank may not be able to prevent duplicating payments or
reconciliation errors.
D. PSE Collections Service
Through the PSE Payments System, the Customer can collect invoices and/or provide shopping
options to its customers or clients, effectively using the PSE Payment button as a payment option
for its customers or clients.
a. The Customer will implement the PSE button service directly with ACH Colombia or a
technology provider of its choosing. The Bank will present the Customer to ACH Colombia to
initiate this process.
b. Credits to accounts will not be effected online. They will be cleared within interbank clearing
(ACH) timeframes.
c. Claims received by the buyer w be handled by the Customer in a timely fashion, dealing
directly with the buyer to resolve any conflicts in connection with the right of retraction or
differences in conditions, quality, amount, or any other matter related to the good or service
itself.
d. In the event of failures of communication that impede online confirmation that the payment
was made on the date and at the time of the transaction per the PSE files, the Customer will
perform the adjustments necessary to culmination the transaction requested by the buyer.
E. ACH Debit Service
A direct debit collection is a financial transaction originated electronically from the Customer to
Citi instructing the Bank to withdraw funds from a payer’s bank account, whether via interbank
transactions or book to book.
Cash Management User Guide – Colombia – V2.0 - November 2020 11 | P a g e1. The Customer initiates the transaction (first obtaining written collection authorization from the
payer) and submits it to Citi.
2. Citi validates that the transaction request contains the information required to process it
3. Citi communicates the transaction to the receiving payer bank via a clearing system or clearing
agent.
4. Citi credits the funds to the Customer’s Account within the agreed time, subject to the Bank’s
receipt of the funds.
If the instruction is returned, rejected or dishonored by the clearing system or the payer’s bank,
or if no credit is received by Citi from the clearing system on the settlement date, Citi debits the
Customer’s Account for the amount originally credited.
The following information is disclosed to the Customer in accordance with ACH
Colombia procedures:
The Customer will obtain a written collection authorization from the individual or legal entity
that issued a collection authorization (Receiving Client) for the Customer to send or initiate a
debit transaction to the respective financial institution (Receiving Financial Institution).
The Customer undertakes to verify that the collection authorization (i) has been duly
conferred, (ii) the validity of the receiving client's identity, (iii) that it contains true and correct
data, and (iv) that it is issued in conformity with the respective ACH debit activation form.
The Customer will maintain a constantly updated, easy-to- use database or file of such
collection authorizations, their cancellations, and any modifications thereto.
The Customer shall retain the original collection authorization documents for the debit
transactions in its archives as a free deposit in favor of Citi and the Receiving Financial
Institution. The cost therefore shall be borne in its entirety by the Customer. The archive
implies the use of technical and security media to ensure the confidentiality of the information
contained therein and to permit the retention of the original documents pursuant to prevailing
law, their physical observation, the preservation, the reconstruction of their content in the
event of a contingency and their physical delivery and/or presentation within twenty four
business hours following the request by arbitration, court, or administrative authorities or by
Citi or the Receiving Financial Institution. The Customer, in its capacity as depository for the
collection authorizations shall be liable vis-a-vis Citi, the Receiving Financial Institution, and
its buyer client for ordinary negligence for the improper use, loss, theft, deterioration,
adulteration, or for any other act that compromises or affects the physical or ideological
integrity of the collection authorizations.
The Customer, prior to executing the first debit transaction, must order Citi to execute the pre-
notification process (hereinafter Pre-notification). It consists of a non-monetary transaction
whose purpose is to obtain validation of the existence and terms of the Receiving Client's
Cash Management User Guide – Colombia – V2.0 - November 2020 12 | P a g eaccount. In addition, the Customer delivers the receiving client's identification data to Citi, who
shall send the data as transaction Pre-notification data. The Receiving Financial Institution
shall proceed to validate that the identification of the account holder is the same as the
identification in its records for the respective account.
Pre-notification will only be sent once. To facilitate the Pre-notification process, the Customer
shall proceed with the electronic transmission of data or the delivery of digital media to Citi,
as appropriate, at least four business days prior to the date on which the first debit transaction
is ordered. If the Pre-notification process is not successful at the Receiving Financial
Institution, it shall be re-launched.
In the event that the Pre-notification process is successful, the Customer will proceed with the
electronic transmission of data to Citi, as appropriate, enabling it to have at least two bank
business days to effect the debit transaction.
The Customer assumes total and complete responsibility for the debit transactions that it
originates, undertaking to originate them only based on prior instructions and authorizations
from its buyer clients. In the event that the collection authorizations are erroneous, fraudulent,
imprecise, incomplete or nonexistent, the Customer shall be liable for the total amount of such
transactions. It therefore irrevocably authorizes Citi to debit at any time from any of its
accounts such sums of money to cover its liability and to return the funds to the respective
account. Such irrevocable authorization is up to the amount improperly debited, as indirect
damages, lost profits, including but not limited to any sum arising from reimbursing the debits
generated, the interest on such sums calculated at the maximum rate permitted by law, as
well as legal costs, attorneys' fees, and other expenses. The Customer shall even be liable
for ordinary negligence, force majeure, and acts of God, as defined by law, for all damages
Citi, the Receiving Financial Institution, the receiving client, or any person incurs as a result
of the occurrence of any these events.
The Customer will maintain in its account(s) on the books of Citi, based on the volume of
transactions originated, sufficient funds to cover any potential returns. Likewise, the Customer
shall be responsible for notifying its buyer clients of any returns and for launching the pertinent
collection actions, as well as for correcting, preparing, and originating once again any
appropriate transactions. In the event that the Receiving Client requests the return within forty
five (45) calendar days following execution of the debit, the Customer irrevocably authorizes
Citi to debit the sums necessary from its accounts and the respective account(s).
The Customer accepts that the funds are subject to final payment pursuant to Citi's
procedures; therefore, Citi can delay the availability of the funds until it confirms such
collection. However, if Citi credits with the Customer to credit all the funds without waiting for
any potential returns by the Receiving Financial Institution, the Customer will maintain in its
account(s) on the books of Citi, based on the volume of transactions originated, sufficient
funds to cover any potential returns of transactions generated by the Receiving Financial
Institutions.
Cash Management User Guide – Colombia – V2.0 - November 2020 13 | P a g e The Customer undertakes to handle and resolve any claim that arises within three bank
business days following receipt of the claim
In the event of termination of the service, the Customer undertakes to establish an insurance
fulfillment policy to secure the payment of any incorrect debit whose claim and reversal are
executed after forty five (45) calendar days following termination of this service for the amount
set by Citi.
Interbank Limits: The maximum daily value for each debit transaction and for the
consolidated daily transactions is seventy two million eight hundred thousand pesos
(COP 72,800,000.00) from a given account. This limit may vary according to market
conditions; any changes will be informed in advance by Citi.
F. Citi® One Receivables
Citi® One Receivables is a solution that provides a single integration with different collection
channels and payment methods to automate the reconciliation process of Company’s Invoices
and Account Receivables. This solution is available in several Latin American countries, allowing
the Company to process and automate the reconciliation of different collection flows.
The Company will be able to inform the Bank of the commercial debt or Invoices, in a designated
format agreed with the Client, whose transmission will be done through different models such as
Secure FTP (SFTP), batch or online using Web Service on any format directly from the ERP
systems. Each of the payers will be able to check their commercial debt or invoices, choose the
document(s) that they wish to pay and make the payment through the collection channels that are
connected to One Receivables. Each time a payer makes a payment, One Receivables will
automatically sends the detail of the successful payment and the reconciled information to the
Company’s accounting system.
Citi® One Receivables includes three(3) main capabilities: a) Citi Active Networks allowing the
Companies to present invoices and debts in our Citi Network Extension Branches ; b) Enhanced
Direct Debit allowing the Companies to collect invoices through the ACH Direct Debit Network
when available in the country and c) Third Party Channels allowing the Company to connect to
One Receivables through other channels such as Third party Banks, Credit Cards Processor,
Mobile Wallets Company, etc. in order to automate the reconciliation of such channels.
Citi® One Receivables provides additional value to your Company’s Receivable process by
providing a series of pre-determined business rules. During the implementation process the
company defines the business rules to be implemented; the Business rules available in One
Receivables for configuration are:
1. Allow Passive Payments: The solution provides the option to select if the payer can input a
passive payment or not for each agreement.
2. Allow Reverse Transactions: The solution provides the option to select if the payer can input
a reverse transaction or not for each agreement.
3. Allow Partial Payment: The solution provides the option to select if the payer can input a partial
Cash Management User Guide – Colombia – V2.0 - November 2020 14 | P a g epayment or not for each agreement.
4. Allow Overdue Payments: The solution provides the option to select if the payer can input an
overdue payment of within “X” days after the due date of the Invoice
5. Set Automatic Discounts an Interest for invoices: The solution provides the option to set
interest and/or discounts to the invoices based on the time range related to the due date of
the invoice.
6. Minimum and Maximum amounts for the Payment: The solution provides the option to set the
Minimum and Maximum amounts allowed for each transaction
7. Payers Binnacle: The solution provides the option to set a list of payers IDs that will be
authorized to make a deposit or payment.
8. Flexible Payment Instruments: The solution provides the option to set payment instruments
allowed for each collection channel.
Implementing Citi® One Receivables requires consultation with the Company’s IT and Accounts
Receivables/Billing Team so that that invoice presentment processes in place can be documented
and a project design proposal created. Implementation timelines range between 4 – 6 weeks
depending on the project scope.
G. Citi® Present and Pay
The Citi® Present and Pay solution enables clients to digitize the invoice presentment and
ascertain greater control over the billing process. Citi® Present and Pay ingests three key data
sets: (1) The Invoice file recording all payments expected (2) the customer master file and (3)
the Citi bank account statement detailing all payments received. These data sets are
transmitted through proprietary Citi Connectivity. The Invoice file and Customer master file are
used to present invoices on pre-agreed client branded templates. These invoices are sent to
the Citi Clients Customer through a Client branded Customer facing portal. The Citi Client’s
Customer will have a number of options to view invoices, make a payment (specific options
available by country) confirm intent to pay and register disputes. A User Interface (UI), provides
Clients with an invoice presentment workflow tool, reporting, insights and analytics.
Implementing Citi® Present and Pay requires consultation with a Clients IT and Accounts
Receivables/Billing Team so that that invoice presentment processes in place can be
documented and a project design proposal created. Implementation timelines range between 8
– 12 weeks depending on the project scope.
H. Citi® Smart Match
The Citi® Smart Match solution enables clients to automate the process of matching payments
received against payments expected – a process known as cash application. Citi® Smart Match
ingests three key data sets: (1) The Accounts Receivables file recording all payments expected
(2) the Citi bank account statement detailing all payments received and (3) Remittance
Information such as email, PDF, files, EDI etc. typically sent by the Citi Client’s Customers to
help identify who made the payment and what that payment was for. These data sets are
transmitted through proprietary Citi Connectivity (SFTP) and various different extractor engines
Cash Management User Guide – Colombia – V2.0 - November 2020 15 | P a g ein the case of remittance data. Match rate success and solution performance relies on the
availability of these three data sets, and Citi cannot guarantee any results that may be achieved
through the use of the Service. Artificial Intelligence aggregates the various different data sets to
perform the matching, Machine Learning technologies enable the solution to learn data patterns
and optimize the match rate success.
A return file detailing all matched and unmatched payments is sent back to the client leveraging
the same connectivity. This file is transmitted into a client’s ERP system to automatically close
the payments expected that were successfully matched. A User Interface (UI), housed within
CitiDirect BE ® provides clients with a cash application workflow tool, reporting, insights and
analytics on solution performance. Implementing Citi® Smart Match requires consultation with a
Clients IT and Accounts Receivables/Collections Team so that that cash application processes
in place can be documented and a project design proposal created. Implementation timelines
range between 8 – 12 weeks depending on the project scope. Citi® Smart Match leverages
technology from US base fintech HighRadius Corporation who specialize in deploying account
receivables technology solutions and are a formal partner of Citi.
Cash Management User Guide – Colombia – V2.0 - November 2020 16 | P a g eIV. Manual Initiation of Instructions
Citi offers its Customers the ability to initiate manual instructions or Manually Initiated Funds
Transfer (MIFT) in the event of a contingency or other scenarios that may involve a manual
instruction, including amendment, recall or cancellation of previous instructions.
To enable this capability, the Customer must complete the Global Manual Transaction
Authorization (GMTA) form, which supplements the Master Account and Service Terms (MAST),
and any other applicable account terms and conditions. The GMTA form must be signed by
authorized signatories as listed in the Customer’s Board Resolution or equivalent.
The GMTA form identifies those individuals who are authorized to initiate and confirm instructions
by manual means, on behalf of the Customer.
Customers who do not provide a GMTA form to Citi, and therefore do not have MIFT payment
capability, understand that manual means of communication will not be available to them in the
event they are required for contingency or other applicable scenarios that may involve manual
instructions.
Additionally, Citi shares concern about operational risk related to sending physical letters to Citi
offices, enabling Customers to send manual instructions via CitiDirect BE® as scanned images.
To enable this capability, the Customer must request the Manual Payments solution package in
CitiDirect BE® Activation Form, where it should indicate which CitiDirect BE® users will be granted
this profile and how they can send manual instructions.
Manual Payments through CitiDirect BE (Pagos Manuales Virtuales)
1. The Virtual Manual Payments service allows the Customer to enter, see, and authorize
instructions via images (letters) through the CitiDirect BE®, CitiDirect BE® Mobile, and
CitiDirect BE® Tablet Electronic Banking system, using a secure transmission channel and
following the current authentication processes (use of the Safeword Card/MobilePASS) as
means of accessing and authenticating the users and processing (with preparer and approver
levels previously requested and authorized by the customer).
2. The sending of instructions through the Virtual Manual Payments service is limited to the
transactions that the Bank defines for this purpose.
3. Instruction images entered in the Virtual Manual Payments service must be previously signed
by the Customer’s authorized representatives and will follow the procedure established in the
signature validation account contract.
4. The images can only be processed in two format types: PDF and JPG
Cash Management User Guide – Colombia – V2.0 - November 2020 17 | P a g eNotes for Completing the GMTA Form
1. The manual instruction can be sent to Citi via either one of the following communication
modes. Please select the option(s) you want to activate in the GMTA form:
Letter
Fax
CitiDirect BE®
2. The initiators can be made available only with Option 1 in the GMTA form.
3. Please provide at least two call-back nominees. Citi recommends that the nominees be
located in the same time zone as the country where the Customer’s Account is located.
4. When completing the GMTA form, the Customer should list all account numbers that are to
be enabled for manual processing on the GMTA Account Information Schedule.
Processing MIFT Instructions
In the event that the Customer requires Citi to process a MIFT instruction:
1. The Customer sends a manual instruction, duly signed, to Citi via the selected communication
mode. For movement of funds from the Customer’s Account, Citi recommends using the Citi
standard manual payment form.
2. Upon receipt of the manual instruction, Citi carries out its internal verification, including but
not limited to, reviewing for completeness of the required processing details and verifying the
initiators’ signature(s) against those provided in the Signature Card. The Customer should
take care when completing the Citi standard form for manual payment as it may be rejected if
it contains erasures/white-outs.
3. Citi may conduct an additional control by calling back the nominees included in the GMTA
form, with the exception of instructions submitted in the Pre-Defined Beneficiary List Form,
once they are initially set up. The call-back nominee and the initiator cannot be the same.
Confirmation by telephone may be recorded by Citi.
4. Citi processes the manual instruction once Citi determines that all the verifications
are successful.
The processing of the instruction is subject to Citi’s internal procedures and conditions given that
there are alternative electronic channels to perform such instruction.
Updates to Authorizations
If information provided in the GMTA changes, the Customer must submit a new GMTA form which
supersedes the previous form. Changes for which Citi should be informed include, but are not
limited to:
Cash Management User Guide – Colombia – V2.0 - November 2020 18 | P a g e Personnel changes
Changes to a person’s name (e.g., due to change in marital status)
New telephone numbers (e.g., new phone number, new area code, or new city code)
New account number
Neither a GMTA form detailing just the updated alone, nor a letter or any other form of document
will be accepted. This is necessary to assure the operational integrity of the manual
communication process.
Deletions to Authorizations
The Customer must submit the name(s) of the nominee(s) to be removed from the GMTA form in
a letter on company letterhead and signed by authorized signatories as per the Customer’s Board
Resolution or equivalent. Again, in the interest of operational integrity, Citi will request a new
GMTA form that will supersede all the previous GMTA forms if there are several signature
deletions.
Cash payment orders through legal representative at branch
This service will not have cost for legal representatives or dully empowered person, who present
themselves with the corresponding documentation that supports said quality.
Cash Management User Guide – Colombia – V2.0 - November 2020 19 | P a g eV. Information Services: Data Aggregation -
Infopool
A. Consolidation Service
Infopool is a single interface to accounts with Citi and third-party banks. The Infopool Service
allows daily monitoring of balances and transaction of accounts maintained in different banks
across borders and currencies. Thus, Infopool Services consists of consolidating the information
on the Customer’s bank accounts and those of its subsidiaries on the books of Citi, Citigroup
banks and/or on the books of other banks (hereinafter Third Parties), through the CitiDirect BE®
electronic banking system.
Citi will only consolidate the information for the accounts indicated by the Customer on the
activation form, without making adjustments to the information provided by its issuer and as such
Citi is not responsible for the content or preciseness of the information on the accounts.
The Customer will authorize Group or Third Party service provider banks to provide to Citi the
account information, including personal data. It likewise authorizes Citi to receive this information
and to process it.
The Customer has and retains all the rights, titles and interests in the accounts information and
permits Citi to consolidate such account information for querying. Given the provision of the
service, Citi will only consolidate the information on accounts established by the Customer,
without adjusting the information provided by the issuer.
The Customer understands that Infopool is a global service, but some countries have personal
data protection laws that limit the compilation, disclosure, processing or transfer of personal data
and the account information may include personal data subject to the personal data laws of one
or more countries.
B. Procedure
1. The Customer warrants that for each account, regardless of the identity of the account holder,
the Customer has the right and is legally authorized to access the account information.
Likewise, the account holder authorizes Citi to consolidate such information.
2. For the implementation of the Data Aggregation (Infopool) service the Customer will submit
the Account Reporting Request Form and confirm the submittal of the Infopool Sample Letter
to the Citi Group and/or Third Party banks on whose books the accounts to be consolidated
using this service are held.
3. Infopool users will be those defined by the Customer on the CitiDirect BE® application forms
with the profile enabled for queries.
Cash Management User Guide – Colombia – V2.0 - November 2020 20 | P a g eVI. Liquidity Management Services
A. Zero Balance Account / Smart Account
ZBA structure consists of one checking account as master concentration account and one or
more checking accounts as payments or participating accounts. (In Colombia, accounts that
are included in the ZBA structure should be under the same Tax ID).
At the end of each day, the ZBA system automatically computes (per legal entity –same tax
ID) the intra-day net cash position of each participating account and automatically transfers
additional funds to the master concentration account in order to participating accounts to
remain at zero as summarized in the following diagram:
Smart Account structure consists of one Saving account as master concentration account
and one or more checking accounts as payments or participating accounts. (In Colombia,
accounts that are included in the Smart Account structure should be under the same Tax ID).
In the Smart Account structure deposits are in the savings account, payment of interest on
excess balances in the savings account is done, daily payments are made from checking
accounts and if at the end of each day there are additional funds on the participating accounts
NO automated sweeps are done as in ZBA for checking accounts to remain at zero as
summarized in the following diagram:
To activate these concentration structures, it is necessary to make the corresponding request
to the bank, in the format that is defined.
Cash Management User Guide – Colombia – V2.0 - November 2020 21 | P a g e
Treasury and Trade Solutions citi.com/treasuryandtradesolutions
© 2020 Citibank, N.A. All rights reserved.
Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and
registered throughout the world.VII. Conclusion
Thank you for choosing Citi Treasury and Trade Solutions (TTS) for your cash management needs.
Please feel free to contact your Citi relationship manager with any additional questions you have
regarding TTS services. Please be noticed that among the products protected by Fogafin's deposit
insurance are the checking account, the savings account, and collection banking services.
Cash Management User Guide – Colombia – V2.0 - November 2020 22 | P a g e
Treasury and Trade Solutions citi.com/treasuryandtradesolutions
© 2020 Citibank, N.A. All rights reserved.
Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and
registered throughout the world.Cash Management Guía de Usuario Colombia Cash Management User Guide – Colombia – V2.0 - November 2020 23 | P a g e Treasury and Trade Solutions citi.com/treasuryandtradesolutions © 2020 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
Tabla de Contenido
I. Introducción ..........................................................................................................................25
II. Sistema de Pagos .................................................................................................................26
A. Tipos de Pagos en Colombia ............................................................................................26
B. Enviando un Pago ............................................................................................................26
C. Notificaciones a los Beneficiarios .....................................................................................27
D. Revocación, Modificación y Rechazo de Pagos ...............................................................27
E. Cheques ...........................................................................................................................27
F. Pagos por ACH de Proveedor de Servicios Electrónicos (PSE)........................................29
G. Pagos a través de Mispagosaldia® (MPAD) .....................................................................29
H. Disponibilidad de Pagos ...................................................................................................30
I. Servicios de Pagos de Valor Agregado ............................................................................31
III. Servicios de Recaudo ...........................................................................................................33
A. Recepción de un Pago ACH .............................................................................................33
B. Canales para Depósitos de Cheques ...............................................................................33
C. Recaudo Físico, Electrónico y Web Services....................................................................33
D. Servicio Recaudo PSE .....................................................................................................34
E. Servicio Débito ACH .........................................................................................................35
F. Citi® One Receivables ......................................................................................................37
G. Citi® Present and Pay – Actualización del Manual de Usuario ..........................................39
H. Citi® Smart Match – Actualización del Manual de Usuario ................................................39
IV. Instrucciones Manuales ........................................................................................................40
V. Information Services - Data Aggregation – Infopool ..........................................................43
A. Consolidación del Servicio................................................................................................43
B. Procedimientos.................................................................................................................43
VI Servicio de Administracion de Liquidez ............................................................................434
A. Zero Balance Account / Smart Account ..........................................................................434
VII. Conclusió...............................................................................................................................44
Cash Management User Guide – Colombia – V2.0 - November 2020 24 | P a g eI. Introducción Gracias por elegir Citi Treasury and Trade Solutions (TTS) para sus necesidades de Cash Management. El objetivo de esta Guía de Usuario de Cash Mangement (Guía de Usuario) es proveer al Cliente con un manual que contiene todos los detalles e información relacionada con los Servicios disponibles y debe ser leída conjuntamente con los términos y condiciones de cuenta y servicios. En esta Guía de Usuario, Citibank Colombia S.A., se denominará en adelante Citi y/o El Banco. Esta Guía puede ser actualizada unilateralmente en cualquier momento y los cambios serán comunicados a través de los canales regulares. Cash Management User Guide – Colombia – V2.0 - November 2020 25 | P a g e
II. Sistema de Pagos
Los pagos serán enviados a través de los sistemas electrónicos CitiDirect BE® y CitiConnect®.
A. Tipos de Pagos en Colombia
ACH: Sistema de pago de transferencias electrónicas interbancarias
Transferencias Sebra: transferencias de fondos, de cualquier monto, en tiempo real a una
cuenta bancaria en otra entidad financiera nacional.
Book to book: transferencias entre cuentas de Citibank.
Cheques: instrumentos de papel negociables (título valor) que pueden endosarse de una
persona o entidad a otra o solicitar su pago en efectivo. Un cheque incondicionalmente
instruye a un banco a pagar montos específicos en una moneda específica a una persona
específica, al “portador” o a “efectivo” (ver sección E).
B. Enviando un Pago
1. El Cliente instruye2 a Citi a pagar al beneficiario a través de CitiDirect BE®, CitiConnect®,
o SWIFT usando los ficheros o interface disponibles, al igual que las transacciones
manuales de transferencia de fondos (MIFT) previo al horario de corte. La instrucción tiene
que ser formateada correctamente de acuerdo con las especificaciones de mercado y lo
expuesto durante la fase de implementación.
2. Citi reenvía las instrucciones relevantes en el sistema de pagos respectivo para
procesamientos futuros.
3. El sistema de pagos reenvía las instrucciones a la base del banco del beneficiario en el ciclo
local de ACH.
4. El banco beneficiario acredita la cuenta del beneficiario posteriormente.
2
El Cliente puede requerir uno o más niveles de autorización para pagos y podrá establecer diferentes límites de aprobación. Todas las
transacciones requieren al menos un originador y un usuario con nivel apropiado de autorizador. El Cliente requiere que cada usuario con
nivel apropiado de autorización de pagos posee un código de identificación o usuario único y una contraseña dinámica y/o cualquier otro
procedimiento que defina Citi La seguridad de la información del pago está asegurada a través de la autorización controlada por el Cliente y
por el sistema de seguridad interno de Citi.
Cash Management User Guide – Colombia – V2.0 - November 2020 26 | P a g eYou can also read
