SEPA Migration Checklist
Single Euro Payments Area (SEPA) standards become mandatory across 17 Euro member states on 1 February 2014. If your organization initiates Euro ACH payment or direct debits, action needs to be taken to ensure compliance. This email series is intended to provide you with relevant information and practical guidance.
Who should be engaged internally for our SEPA project?
It is important to ensure internal stakeholders are engaged to ensure all necessary aspects of the SEPA migration are covered and a project managed approach is recommended. Below is a list of internal areas that may be impacted and a summary of key activities that should be considered. There may be other areas or activities within your organization that could be impacted or activities may fall under different departments.
- Speak with Citi to understand SEPA’s impact and the opportunities available.
- Assess current payment/collection flows and account usage.
- Determine impacted group companies.
- Evaluate bank, account structure, banking connectivity and file format strategies.
- Decide on a SEPA Direct Debit scheme.
- Investigate system changes (e.g. ERP/Accounting systems) and ensure budget in place for required changes.
2) Accounts Payable / Receivables
- Ensure IBAN and BIC readiness.
- Review processes and incorporate necessary changes. Under SEPA Direct Debits, the creditor is responsible for storing and holding mandates. Creditors are also responsible for notifying customers when collecting through SEPA.
- Confirm end-end flow of payment information and reconciliation.
- Implement and maintain ERP changes – such as IBAN, BIC and other fields.
- Accommodate both ERP/Accounting system changes and other system changes - e.g. update to sales or employee systems.
- Understand mandate management impact – potentially new databases / systems will be required or utilization of third party services.
- Potential Bank Connectivity & Format changes.
- Testing and cut-over to full usage of SEPA.
4) Human Resources
- Migration of payroll to SEPA including dealing with outsourced payroll providers.
- Collection of new employee account details.
5) Customer Service
- Awareness of SEPA changes.
- Readiness for customer queries – e.g. on mandates.
- Awareness of changes to refund rights under SEPA Schemes.
- Potential changes to customer contracts/ T&Cs to align with refund rights.
- Awareness of changes to customer processes/forms - e.g. new mandates have to be collected from new customers.
- Collection of SEPA details ongoing - e.g. updates or amendments to mandate forms.
8) Project Management Office
- Ensure the SEPA project is resourced, changes are scheduled and progress is underway. Monitor activities across all impacted departments.
SEPA has the ability to deliver real value to your organization. Citi is committed to delivering solutions that enable you to capitalise on the benefits that SEPA offers.
To put our expertise to work for you today, please contact your Citi representative or visit our SEPA website at www.transactionservices.citi.com/SEPA
Citi Transaction Services
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