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Citi Perspectives for the Public Sector
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2015 – 2016
41
Meeting global transparency needs
With today’s global emphasis on government
transparency, MFAs are under pressure to
maintain a strong control environment and
a reliable and timely audit trail. Anti-corruption
efforts in cash-based environments, such
as embassies, require strong fraud
management practices.
Being able to take advantage of global, real-
time, electronic reporting provides central
finance groups with instant visibility, offering
better control and transparency. Embassy
banking experts, such as Citi, offer unmatched
global resources, expertise and technology
for streamlining cash management processes
and optimizing funds usage. Citi’s integrated
offerings enhance controls, improve efficiency
and provide transparency into funds flows
and balances.
Working with a trusted advisor with a long
history of supporting MFAs, who can provide
domestic and cross-border transaction
expertise and offer leading online cash
management technologies and tools, can be
a game-changer for central finance groups.
The right global banking partner can provide
the technology, information and experience
needed to streamline and harmonize treasury
activities and reduce administrative costs. MFAs
can harness the power of a robust treasury
management platform to institute more
efficient and cost-effective cash management
practices, putting the best practices of the
private sector to work for the public good.
Lessons learned: A case in point
Taking a lesson from best-in-class global
treasuries, central finance groups can benefit
by partnering with a single core bank, while still
allowing embassies to maintain local banking
relations, where required.
Case in point: An MFA in Asia realized that as a
result of its 30 bank relationships and multiple
commercial card providers, central finance
had little oversight over banking costs and
limited visibility and control of its accounts
and cards spend globally. By adopting a
centralized banking model, instead of each post
performing functions such as administration,
invoice processing, petty cash, over-the-counter
(OTC) cash, and supplier payments, the MFA’s
SSC processes payments and consolidates
account information. The SSC issues payment
instructions to vendors and receives bank
balances, card spend, and invoice information.
Using Citi’s WorldLink
®
Payment Services,
the MFA’s central finance group was enabled
to automate transaction flows and fund its
posts globally in an efficient way. Relying on
the payments capabilities of WorldLink, the
finance team was able to execute domestic and
cross-border payments easily and securely.
This powerful service allows the MFA to issue
payments in more than 135 currencies via a
single window, without having to maintain
local currency accounts. As a result of its
centralization initiative, the Ministry has
achieved significant cost savings, as well as
transparent banking costs.
Embassy banking experts, such as Citi, offer unmatched global resources,
expertise and technology for streamlining cash management processes and
optimizing funds usage. Citi’s integrated offerings enhance controls, improve
efficiency and provide transparency into funds flows and balances.