Correspondent & Reimbursement check0 / 1 answered · 0 correct
Check 1
Is a SWIFT message itself the money?
Nostro and Vostro Accounts
The same account seen from two banks’ viewpoints.
Nostro
“Nostro” is commonly used for our account held with another bank, often in a foreign currency.
Vostro
“Vostro” is commonly used for your account held with us. The same account relationship can therefore be described differently by each bank.
Why it matters
Payments settle through actual accounts and clearing systems. SWIFT messages communicate instructions; they are not themselves the money.
Reconciliation
Banks reconcile balances, value dates and entries. Operational errors can occur even when the underlying payment instruction is valid.
Standards / source note: Correspondent and reimbursement arrangements depend on bank agreements, current SWIFT standards and, where incorporated, ICC rules such as URR 725.
Remember thisSWIFT sends the instruction; settlement ultimately changes balances in accounts/clearing systems.
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