ISO 7341:2005
(Main)Banking — Nostro accounts reconciliation
Banking — Nostro accounts reconciliation
ISO 7341:2005 specifies the data to be contained on a loro account statement (also known as vostro account), and the format of such data. It also provides rules for the creation, transmission and reconciliation of statements, and for the handling of references.
Banque — Procédures de rapprochement de comptes
General Information
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Standards Content (Sample)
INTERNATIONAL ISO
STANDARD 7341
Third edition
2005-02-15
Banking — Nostro accounts
reconciliation
Banque — Procédures de rapprochement de comptes
Reference number
ISO 7341:2005(E)
©
ISO 2005
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ISO 7341:2005(E)
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ISO 7341:2005(E)
Contents Page
Foreword. iv
Introduction . v
1 Scope. 1
2 Normative references . 1
3 Terms and definitions. 1
4 Data to be included in statements. 3
4.1 General. 3
4.2 Data related to statements as a whole. 3
4.3 Data related to each element . 4
5 Rules for the creation and transmission of statements. 6
5.1 Statement frequency. 6
5.2 Transaction amount. 6
5.3 Entries for expenses, charges or commission . 6
5.4 Bulking of entries. 6
5.5 Code MSC (miscellaneous). 6
5.6 Entry date. 6
5.7 Value date . 6
5.8 References. 8
6 Rule for the handling of references . 8
6.1 Assignment of references to a transaction. 8
6.2 Use of references on statements to identify transactions. 8
Annex A (informative) Examples showing methods of handling references . 10
Bibliography . 14
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ISO 7341:2005(E)
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards bodies
(ISO member bodies). The work of preparing International Standards is normally carried out through ISO
technical committees. Each member body interested in a subject for which a technical committee has been
established has the right to be represented on that committee. International organizations, governmental and
non-governmental, in liaison with ISO, also take part in the work. ISO collaborates closely with the
International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization.
International Standards are drafted in accordance with the rules given in the ISO/IEC Directives, Part 2.
Draft International Standards adopted by the technical committees are circulated to the member bodies for
voting. Publication as an International Standard requires approval by at least 75 % of the member bodies
casting a vote.
Attention is drawn to the possibility that some of the elements of this International Standard may be the
subject of patent rights. ISO shall not be held responsible for identifying any or all such patent rights.
ISO 7341 was prepared by Technical Committee ISO/TC 68, Financial services.
This third edition cancels and replaces the second edition (ISO 7341:2000), of which it constitutes a minor
revision.
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ISO 7341:2005(E)
Introduction
A financial institution that services an account on behalf of an account owner financial institution sends
statements of that account at regular intervals to the account owner financial institution. Reconciliations (i.e.
the matching and verifying of entries) of such statements by the account owner financial institution can be
carried out manually, but increasing use is now made of automatic aids to assist in the reconciliation process.
Successful reconciliation of the data provided in statements requires that the data concerned be both accurate
and complete. Moreover, the use of a standardized format for the transmission of data facilitates the use of
automatic aids to reconciliation. The application of rules for the transmission of references unique to a
particular transaction also minimizes the occasions when matching cannot be accomplished.
This International Standard is designed to provide a basis for agreements on the preparation of account
statements between correspondent financial institutions. It is based on S.W.I.F.T. message type MT 950.
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INTERNATIONAL STANDARD ISO 7341:2005(E)
Banking — Nostro accounts reconciliation
1 Scope
This International Standard specifies the data to be contained on a loro account statement (also known as
vostro account), and the format of such data. It also provides rules for the creation, transmission and
reconciliation of statements, and for the handling of references.
2 Normative references
The following referenced documents are indispensable for the application of this document. For dated
references, only the edition cited applies. For undated references, the latest edition of the referenced
document (including any amendments) applies.
ISO 4217, Codes for the representation of currencies and funds
ISO 8601, Data elements and interchange formats — Information interchange — Representation of dates and
times
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
3.1
account identification
identification assigned by the account servicing financial institution to identify the account of the account
owner financial institution
3.2
account owner financial institution
financial institution for which an account is serviced at another financial institution that is the depository for an
account
3.3
account servicing financial institution
financial institution that is the depository for an account
3.4
advice (debit or credit)
confirmation that a funds transfer has been executed
NOTE An advice does not contain payment order instructions.
3.5 Balances
3.5.1
available balance
balance at the disposal of the account owner at the close of the statement period
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ISO 7341:2005(E)
3.5.2
closing balance
balance of entries posted to the account at the close of the statement period
3.5.3
intermediate closing balance
balance of entries posted to the account at the end of the statement page or message
3.5.4
intermediate opening balance
intermediate closing balance of the previous page or message
3.5.5
opening balance
closing balance of the previous statement
3.6
bulking
practice of totalling the amounts of a number of transactions to provide a single accounting entry
3.7
entry
any debit or credit posted to an account
3.8
entry date
date on which entries are made in the records of an account
3.9
loro account
vostro account
account serviced by a financial institution on behalf of an account owner financial institution
NOTE The account servicing financial institution sends the statements of account to the account owner financial
institution.
3.10
nostro account
record kept by an account owner financial institution of an account serviced on its behalf by an account
servicing financial institution
NOTE The account owner financial institution receives the statement of account from the account servicing financial
institution.
3.11 References
3.11.1
account servicing financial institution's reference
reference assigned by the account servicing financial institution to identify the transaction
NOTE This is the reference to which the account owner financial institution refers in cases of enquiry to that financial
institution.
3.11.2
reference for the account owner financial institution
reference which identifies the transaction to the account owner financial institution
3.11.3
reference for the beneficiary
reference which enables the beneficiary to identify the transaction
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ISO 7341:2005(E)
3.11.4
sending financial institution's transaction reference
reference assigned by the sending financial institution which uniquely identifies the transaction
3.11.5
supplementary details
information for the account owner financial institution which may be added to individual statement entries
3.12
transaction amount
funds transferred between two parties in a transaction
3.13
value date
date on which the funds are at the disposal of the account owner financial institution
3.14
sending financial institution
financial institution that inputs a message to a service
3.14.1
sender
party authorized to send a message
4 Data to be included in statements
4.1 General
The data (both mandatory and optional) to be included in statements are described under two main headings:
a) data related to statements as a whole (see 4.2);
b) data related to each entry (see 4.3).
Mandatory data elements known to the financial institution sending the statement shall always be included;
optional elements are included at the discretion of the sending financial institution.
4.2 Data related to statements as a whole
4.2.1 List of data elements
4.2.1.1 Mandatory elements
The following elements shall be included in all statements.
a) Account identification.
b) Account owner financial institution's identification.
c) Balances:
1) opening balance: date (as at the closing of the previous statement period), amount and nature (debit
or credit);
2) closing balance: date (as at the close of the present statement period), amount and nature (debit or
credit).
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ISO 7341:2005(E)
d) Currency identification (and fund type if needed).
NOTE If a code is used, this shall be taken from ISO 4217.
e) Sequence number of the statement.
NOTE Methods of sequence numbering are given in 4.2.3.
f) Statement sender identification.
g) Transaction reference number.
4.2.1.2 Optional elements
The following elements may be included in the statements.
a) Balances:
1) available balance: date (optional), amount, nature (debit or credit);
2) intermediate closing balance: date (optional), amount, nature (debit or credit);
3) intermediate opening balance: date (optional), amount, nature (debit or credit).
b) Entries.
NOTE The sequence for listing entries is shown in 4.2.2.
4.2.2 Method of listing the entries
To facilitate manual reconciliation the sequence for listing entries within statements shall be by entry date and,
within entry date, by value date. Debits and credits shall be shown separately in ascending order of amounts
in each case. As a consequence of using this convention, charges will not usually appear together with their
principal amount.
4.2.3 Numbering of statements and pages within statements
Statements (and pages within statements, if these are used) shall be numbered using one of the following
methods:
a) unbroken sequential numbering of all statement pages;
b) sequential numbering of statements and numbering of individual pages within them.
EXAMPLE The second page of the twenty-third statement would be numbered 23/2.
4.3 Data related to each element
4.3.1 List of data elements
The data elements for each entry shall be as follows.
a) Amount (mandatory): maximum length 15 digits.
b) Dates:
1) entry date (optional) (see 5.6): the format shall be month-day (e.g. 07-10);
2) value date (mandatory) (see 5.7): the format shall be in accordance with ISO 8601,
e.g. year-month-day (e.g. 1999-07-10).
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ISO 7341:2005(E)
c) Entry type identification (mandatory):
1) indication of a credit (code C), or indication of a reversal of a debit (code RD);
2) indication of a debit (code D), or indication of a reversal of a credit (code RC).
d) Funds type (optional), if applicable, to consist of the third character of the currency code (ISO 4217).
e) References:
1) account servicing financial institution's reference (optional) (see 5.8.3);
2) reference for the account owner (mandatory) (see 5.8.2): maximum length 34 characters;
3) supplementary details (optional) (see 5.8.4).
f) Transaction type identification code (mandatory).
NOTE For the explanation and list of codes see 4.3.2.
4.3.2 Transaction type identification code
4.3.2.1 Explanation of code
The transaction type identification code comprises four characters.
a) The first character is a code indicating the means by which advice of the transaction has been transmitted
if it is a credit, or means by which the instruction was transmitted by the account owner if it is a debit.
Currently allocated codes are as follows.
F: The first time that the entry is made known to the account owner financial institutions [for example
charges previously unadvised (see 4.3.2.3 and 5.3)].
N: The corresponding advice or transfer was not routed by S.W.I.F.T. or where an “alpha” description is
preferred (see 4.3.2.4 and Table 1).
S: The corresponding advice or transfer was routed by S.W.I.F.T. (see 4.3.2.2).
b) The last three characters indicat
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