Multibank Relationship Management in Middle East and Africa

13 Multibank Relationship Management in Middle East and Africa Role of treasury policy in monitoring multi-banking Sophisticated treasury operations will often have a well-defined treasury policy which is instrumental in overseeing multi-banking arrangements. Such a policy outlines the corporation’s approach tomanaging banking relationships, including criteria for selecting banks, guidelines for account management (including opening or closing of new bank account) and protocols for risk assessment. By establishing clear parameters, the treasury policy ensures consistent monitoring and control over multi-banking activities, thereby enhancing financial governance and operational efficiency. SWIFT MNCs operating in the Middle East and Africa region often utilise the SWIFT network to facilitate secure and standardised financial messaging across multiple banking relationships. SWIFT is widely adopted by MNCs in the MEA region due to its ability to standardise and automate financial transactions, thereby reducing operational costs andminimising errors. The network’s global reach and reliability make it a preferred choice for corporations dealing withmultiple banks across different countries. Despite its advantages, MNCs in the MEA region face specific challenges when implementing SWIFT connectivity. • Regulatory variations The MEA region comprises diverse regulatory environments, requiring MNCs as well as banks to navigate complex compliance requirements across jurisdictions. • Infrastructure disparities Variations in technological infrastructure across MEA countries can affect the consistency and reliability of SWIFT connectivity. Across MEA there are still banks that lack the technical infrastructure to integrate seamlessly with global TMS platforms. • Security concerns Enabling robust cybersecurity measures is critical, especially in regional with varying levels of cyber threats, awareness and preparedness. Challenges specific to MEA