Thus, intermediate banks could be unwittingly involved in illegal transactions under new regulations.
In order to improve the responsiveness of international banking, a method of cover payments was developed.
The MT202 COV is the bank-to-bank order that instructs funds movement in alignment with the MT103 messages.
The MT202 COV is needed because of correspondent banking networks and the complexity of international funds movements.
The MT202 COV augments the MT202 message by containing the origination and destination FI and account, such that intermediary banks are aware of sources and destinations and can perform their own risk analysis as well as comply with their specific banking regulations.