Cross-Border Settlement Tracking | Unified Ledger

Introduction

Cross-border payments are inherently complex. Transactions traverse multiple banking networks, payment processors, and currency conversions before reaching their final destination. Each intermediary introduces delays, fees, and data format variations that make tracking and reconciliation challenging.

NAYA's unified ledger provides end-to-end visibility into cross-border settlements, enabling finance teams to track funds from initiation through final receipt across any combination of payment rails and currencies.

The Problem

Organizations processing cross-border payments face significant tracking and reconciliation challenges:

Multi-Hop Payment Flows: A single cross-border payment may flow through your payment processor, a correspondent banking network, currency conversion services, and the recipient's local payment system. Each hop generates separate transaction records that must be correlated.

Settlement Timing Uncertainty: Unlike domestic payments that settle in predictable timeframes, cross-border settlements can take 1-5 business days or longer depending on the corridor, currency pair, and banking relationships. Without visibility, finance teams cannot accurately predict cash positions.

Currency Conversion Complexity: Payments are often initiated in one currency and delivered in another. Tracking the actual FX rate applied, any conversion fees, and the exact amounts at each stage is essential for accurate accounting and margin analysis.

Data Format Fragmentation: SWIFT messages, local payment scheme formats, and processor APIs each use different data structures and identifiers. Correlating a payment across systems that use different reference numbers requires manual matching or complex logic.

Correspondent Bank Fees: Fees are often deducted by intermediary banks during the payment process. Without tracking these deductions, the final settlement amount may not match expectations, leading to reconciliation breaks.

Regulatory Reporting Requirements: Cross-border payments often trigger reporting requirements (BSA/AML, FATF, local central bank reporting). Accurate tracking data is essential for compliance.

The NAYA Solution

NAYA provides the infrastructure to track cross-border settlements with complete visibility and accuracy.

End-to-End Transaction Linking

NAYA's Data Hub ingests data from all systems involved in cross-border payments: your payment processor, SWIFT gateway, correspondent banks, and local payment rails. The system links related records using configurable matching rules, providing a unified view of each payment's journey.

Multi-Currency Ledger

NAYA's Operational Ledger natively supports multi-currency operations. Record transactions in their original currencies and track FX conversions as separate, linked events. The ledger maintains accurate balances in each currency while providing consolidated views for reporting.

Fee and Deduction Tracking

Capture intermediary fees at each stage of the payment flow. NAYA reconciles the expected delivery amount against actual receipts, identifying any unexpected deductions and their sources.

Settlement Status Monitoring

Track the status of each payment through its lifecycle: initiated, in transit, converted, delivered, and confirmed. Automated monitoring alerts your team when payments are delayed beyond expected settlement windows.

How It Works

1. Capture Payment Initiation: When a cross-border payment is initiated, NAYA records the instruction including sender, recipient, amount, currencies, and expected delivery date.

2. Track Intermediate Events: As the payment moves through correspondent banks and conversion services, NAYA ingests status updates and fee information. Each event is linked to the original payment instruction.

3. Match Final Settlement: When funds arrive at the destination account, NAYA matches the receipt to the original payment, reconciling the delivered amount against expectations and identifying any discrepancies.

4. Report and Analyze: Use NAYA's APIs and dashboards to monitor settlement timing, analyze corridor performance, and identify cost optimization opportunities.

Key Benefits

• Complete Payment Visibility: Track every payment from initiation through final delivery across all intermediaries.
• Accurate Cash Forecasting: Understand settlement timing patterns to improve cash position predictions.
• Fee Transparency: Capture and analyze intermediary fees to negotiate better rates and optimize corridors.
• Faster Discrepancy Resolution: When amounts do not match, quickly identify where fees were deducted or errors occurred.
• Multi-Currency Accuracy: Maintain precise records of FX rates and conversion timing for accurate accounting.
• Regulatory Compliance: Complete transaction records support AML, sanctions screening, and central bank reporting requirements.

Compliance & Reporting

Cross-border payments carry significant regulatory requirements that NAYA helps address:

• AML/KYC Documentation: Maintain complete records of payment parties and screening results.
• Sanctions Compliance: Track screening results and investigation outcomes for flagged payments.
• Central Bank Reporting: Generate reports required by regulators for foreign exchange transactions.
• Audit Trails: Provide auditors with complete payment histories including all intermediary events.

Integration Architecture

NAYA connects with your existing cross-border payment infrastructure:

• Payment Processors: Integrate with Wise, OFX, Convera, or your existing PSP for payment initiation and status tracking.
• SWIFT Gateway: Ingest SWIFT MT and MX messages for correspondent banking visibility.
• Treasury Management: Sync settlement data with your TMS for cash forecasting and FX exposure management.
• ERP Systems: Post settled transactions to your general ledger with accurate FX rates and fee allocations.

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