For 11 years Postbank has acted as the Euro
Settlement Service Provider for the Eurogiro
Community. Nowadays Postbank manages
the settlement of Euro-denominated payments
exchanged between the participating Eurogiro
members for almost 50 banks and postal ope
rators worldwide. Optimisation of liquidity man-
agement and reliability of the service are key
benefits of the centralised Euro Settlement.
Regulators require enhanced transparency
The previous ESSP set-up did not comply
with the new requirements stipulated in the
new EU Regulation 2015/847 and FATF Re
commendation XVI. Basic information about
the settlement-related underlying transactions
was missing.
As the existing settlement service provider,
Postbank had to take appropriate action to
avoid “blind settlement”. In order to close
the compliance gap, the re-designed ESSP
set-up also includes the underlying payment
details of settlement instructions within the
ESSP Re-design – the next generation
of enhanced settlement service
Since 2004 Deutsche Postbank has been proud to act as the Euro Settlement Service Provider for the Eurogiro
Community. New regulatory requirements with enhanced compliance demands led to the necessity to adjust
the previous ESSP service to the new re-designed ESSP. On June 24th 2015 Postbank, Eurogiro and the
Eurogiro community jointly and successfully launched a new era of the Euro single settlement.
existing Anti Money Laundering and Sanc-
tions Screening processes of the Settlement
Service Provider.
Sanctions screening is based on T-copies
of all transactions initiating ESSP settlement
being sent from the Eurogiro hub to the
Settlement Provider in order to enable sanc-
tions screening prior to settlement.
Eurogiro upgraded its ELS/ESM software
to ease member adoption and Postbank
installed a new interface between ESSP and
its sanctions screening application.
New EU regulation 2015/847 came
into force on June 26th, 2015
With the successful launch of the re-designed
ESSP on June 24th, 2015 Postbank is proud to
say that rarely has a new legislation been imple-
mented more straightforwardly than this one.
The strict observance of the timelines was
mainly as a result of timely conception and
Payment is sent to receiving bank,
and MT202 and T-copy are sent to
ESSP. ESSP settles after successful
screening. If transaction cannot pass
screening, settlement is cancelled
and the envelope has to be re-sent
without the failing transaction(s).
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The re-designed ESSP solution consists of the following key features:
Eurogiro News
your global payments community
September 2015 - Issue 02
How to modernise
a dinosaur
7
First time in Asia
– Eurogiro’s 2015 annual
member meeting
5
Technical User Group
meeting 2015 in
Copenhagen
3
Five social conversa-
tions that Western Union
cares about
2
