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Bahrain

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Cash Management User Guide – Bahrain – V2.0 – July 2020
 Table of Contents
I. Introduction ............................................................................................................................. 3

II. Payment Services .................................................................................................................... 4

A. Types of Payments Services in Bahrain ................................................................................................. 4

B. Sending a Payment ................................................................................................................................ 4

C. Direct Debits (Payments) ........................................................................................................................ 5

D. Payable Cheques ................................................................................................................................... 5

E. Over-the-Counter Payments ................................................................................................................... 7

F. Standing Instructions .............................................................................................................................. 7

G. Payments – Value Added Services ........................................................................................................ 7

III. Receivables Services .............................................................................................................. 9

A. Receiving a Payment .............................................................................................................................. 9

B. Cheque Deposits .................................................................................................................................... 9

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C. Over-the-Counter Cash Collections........................................................................................................ 9

IV. Other Considerations ............................................................................................................ 10

V. Complaints ............................................................................................................................. 11

VI. Conclusion ............................................................................................................................. 12

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Cash Management User Guide – Bahrain – V2.0 – July 2020
 I. Introduction
Thank you for choosing Citi’s Treasury and Trade Solutions (TTS) for your cash management
business needs. The objective of this Cash Management User Guide is to provide customers
with a manual containing detailed information of services available to them and is to be read
together with your account terms and conditions. In this guide, Citi and Bank may be used
interchangeably. This guide may be updated from time to time and any change will be
communicated through our regular channels.
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 II. Payment Services
A. Types of Payments Services in Bahrain
 Book Transfers: Transfers of funds between Citi Accounts in Bahrain.

 Domestic Funds Transfers: Transfers processed via the Electronic Funds Transfer
System (EFTS), which supports both high-value and low-value transfers.

 Real-Time Gross Settlement (RTGS): A large-value funds transfer system based on

continuous settlement of payments on a gross, individual order basis; primarily used for
interbank transfers and manually initiated funds transfers.

 Direct Debits (Payment): A means of making payments where the beneficiary

(“originator”) generates the initiating transaction to be processed by the payer’s bank
against the payer’s account. Direct debits, which are always subject to the payer’s
authorization, are typically used for recurring payments, such as credit card and utility
bills, where the payment amounts vary from one payment to another. Payments are
processes via the Electronic Bill Presentment and Payment (EBPP) Module of EFTS.

 Cheques: Negotiable paper-based instruments that can be passed from one person or
entity to another and exchanged for money. A cheque unconditionally instructs a bank
to pay a specific amount in a specific currency to a specified person, to a “bearer”, or
to “cash” upon presentment.


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Cross Border Funds Transfers: Allow Citi customers to make international transfers in a
wide range of currencies as outgoing telegraphic transfers.

B. Sending a Payment
1. The Customer sends a payment instruction to Citi, formatted to market standards and as
outlined at the time the payment service was implemented, via:

 Citi e-banking channels, which include CitiDirect BE® and CitiConnect®, or

 A SWIFT interface

2. Citi forwards the instruction to the relevant payment system for further processing.

3. The payment system forwards the instruction to the beneficiary bank based on the locally
defined clearing cycle.

4. The beneficiary bank credits the beneficiary account.

For domestic EFTS payments, the beneficiary bank must be in Bahrain.

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 C. Direct Debits (Payments)
Citi, as the Customer’s paying Bank, supports incoming direct debits received from other
participating financial institutions or partner banks having bilateral agreements with Citi.

1. Citi validates the transaction received against the direct debit mandate (or equivalent),
previously communicated by the Customer to Citi, before payments are made.

2. If the direct debit payment is in compliance with the direct debit authorization, Citi
processes the instruction and debits the Customer's Account.

3. Citi communicates to the collecting financial institution via the EFTS system (EBPP
Module) for positive or negative (rejects) acknowledgements). In the event there are
insufficient funds in the Customer’s Account, Citi will not process the direct debit
payment and will send the unsuccessful debit status back to EFTS.

Citi will reverse any entry passed erroneously and debit or credit the relevant account.

D. Payable Cheques
Citi Bahrain can issue two types of payable cheques for the Customer.

1. PayLink® Demand Drafts: Prefunded instruments drawn on Citi or a correspondent bank,

where the issuer of the draft (the drawer/Customer) directs the drawee (the Bank) to
make payment to the payee (the cheque beneficiary).

2. Bank Drafts, including PayLink® manager's cheques (local currency) and manager’s
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cheques (local currency).

The validity period of a payable cheque is determined by applicable laws and banking
practices, from the date mentioned on the cheque upon its issuance. The last day of such
period is known as the “expiry date”. If any such payable cheque is not presented for
payment on, or before, the expiry date, the Bank will not honor the cheque.

Issuance and Processing of PayLink® Demand Drafts

1. The Customer communicates the instructions via the agreed Citi e-banking channel.

2. Citi debits the Customer’s Account and prints the drafts.

3. Citi sends the drafts to the payees’ addresses, or makes them available for pickup as
specified in the Customer’s instruction on the relevant e-channel.

4. The payees deposit the drafts, which are presented back to Citi via local clearing
arrangements.

5. The drafts are validated and the funds are then made available.

6. The Customer will be informed of any issues with drafts that have been presented.

7. Citi will not make a payment if it considers a cheque or draft to be materially altered,
forged, counterfeit or stolen, or at the request of a competent judicial, quasi-judicial,
regulatory, government or supervisory authority.

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 8. If a PayLink® demand draft is not presented for payment on or before the expiry date, the
Bank will not honor the cheque. A credit for the amount payable of the expired cheque
will be made to the Customer’s Account either upon the Customer’s request or at the
Bank’s discretion within a reasonable time after the expiry date.

Issuance and Processing of PayLink® Managers Cheques

One-time set up is required for limits and mandates for facsimile signatures and cheque
amounts. The Customer must notify Citi of any changes to the authorized signatory list using
the required documents at least five business days in advance.

1. The Customer communicates instructions to print and issue cheques via the agreed Citi
e-banking channel.

2. Citi prints the cheques, drawn on the Customer’s Account, with a facsimile signature of
the authorized signatory, subject to established cheque and signatory limits and
mandates.

3. Citi sends the cheques to the payees’ addresses, or makes them available for pickup as
specified in the Customer’s instruction on the relevant e-channel.

4. The cheques are deposited by the payees and presented to Citi via local clearing
arrangements.

5. Cheques are validated and posted to the Customer’s Account for settlement and the
funds are then made available.
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6. Citi will not make a payment if it considers a cheque or draft to be materially altered,
forged, counterfeit or stolen, or at the request of a competent judicial, quasi-judicial,
regulatory, government or supervisory authority.

7. If cheques or drafts are lost, stolen, destroyed, stale or invalid, the Customer must inform
Citi in writing per the pre-agreed formats for stopping payments, along with any required
supporting documentation as per local policies, laws and regulations. (For example, stop
payment instructions for stolen cheques should include a police report and
undertaking).Upon the Customer’s request, Citi can either issue a new cheque/draft or
credit the Customer’s Account. If the lost, misplaced, or stolen cheque or draft is later
found, the Customer is required to deliver the original cheque or draft to Citi immediately

Stop Payment Requests on Payable Cheques

The Customer may request that the Bank put a stop payment on any payable cheque in
case of lost, misplaced or cancelled cheques, in accordance with Bank procedures and
applicable local laws. Citi recommends using the Citi standard form for stop payment, which
can be obtained by contacting the CitiService Desk.

1. The Customer communicates the stop payments instructions to Citi. The stop payment
instructions will specify the serial number of the cheque, the date of issue, the payee’s
name and the amount. Stop payment on cheques will be effected based on the
information specified in such instructions.

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 2. If PayLink® demand drafts to be stopped have not been paid, the Bank will refund the
proceeds of all stop payment requests and cancellations to the Account from which the
payments were derived, except in cases where the Customer requests that a
replacement draft be issued.

3. If a lost, misplaced, or stolen cheque or draft is later found, the Customer is required to
deliver the original cheque or draft to Citi immediately.

The Bank will accept the Customer’s instructions to stop payment of cheques on a best
efforts basis.

E. Over-the-Counter Payments
Citi maintains a cash counter at the branch, at which customers or their authorized
representatives can withdraw cash in accordance with standard procedures, local laws and
regulations.

F. Standing Instructions
Customers can use standing instructions to make recurring funds transfers on a scheduled
basis.

G. Payments – Value Added Services

Citi Payment Outlier Detection
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Citi® Payment Outlier Detection is an informational tool that uses advanced analytics and
machine learning capabilities to help identify transactions relating to a Customers’ Accounts,
and/or Accounts held by the Customer’s affiliates, subsidiaries and branches for which the
Customer is authorized to operate, that are materially different as compared to a Customer’s
Transaction History. When Citi Payment Outlier Detection is set to the online mode these
“outlier transactions” are flagged and actively held in a queue for further review and action by
the Customer’s designated payment reviewer(s) via Citi’s electronic banking platform,
CitiDirect BE®. If upon reviewing the transactions, the designated payment reviewer(s)
determines that the outlier transaction was unintended, the payment reviewer(s) will have
the ability to cancel the transaction, or approve and release it for further processing. Once
the outlier transaction is cancelled, it is not processed further by Citi’s payment processing
systems.

Citi Payment Outlier Detection Features*:

1. A unique baseline profile is generated for each Customer based on the transaction
history of their Accounts, and/or Accounts held by the Customer’s affiliates, subsidiaries
and branches which the Customer is authorized to operate (the ‘Customers Transaction
Data’), which helps improve outlier detection accuracy.

2. Every transaction that is evaluated by Citi Payment Outlier Detection receives a risk
score (0-100) depending on how much it deviates from the relevant past payment
history. Customers can configure the Payment Outlier Detection Threshold that helps
determine which transactions are identified as outliers.

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 3. Once a potential outlier transaction is identified, the designated payment reviewer(s)
receives a notification and accesses the outlier review queue via CitiDirect BE.

4. Approved outliers refer to outlier transactions that the Customer’s designated payment
reviewer(s) has confirmed to be correct and approved for further processing. Rejected
outliers refer to outlier transactions that Customer’s designated payment reviewer(s) has
confirmed to be unintended.

5. In Online mode potential outlier transactions are flagged and actively held in a queue
until the transaction is actioned upon by the Customer’s designated payment reviewer(s),
or until the cut-off time (as described below) has been reached (in which case the outlier
transaction(s) are processed). Approved transactions are released and processed by Citi
while rejected transactions are cancelled.

6. In the Online mode, Customers can also set a cut-off time limit after which any held
outlier transactions will be automatically released for processing.

7. In Offline mode, potential outlier transactions are identified but not actively held in a
queue or otherwise stopped by Citi Payment Outlier Detection and continue to be
processed. Additionally, in the Offline mode, the machine learning algorithm of Citi
Payment Outlier Detection continues to allow the system to keep learning from the
Customer’s Transaction Data as well as from the responses provided by the designated
payment reviewer(s), as part of a continuous re-adjustment of the risk scoring routine
based on the reviewer’s action.

8. Payment outlier reports are available via the CitiDirect BE Reports and Analytics
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function.

The execution of the payment transactions that are subject to Citi Payment Outlier Detection
will occur in accordance with Citi’s usual execution timeframes for the relevant payment type
and will be considered received by Citi as follows:

1. In respect of a transaction that is not flagged as an outlier, the time when Citi completes
the Citi Payment Outlier Detection process; and

2. In respect of a transaction that is flagged as an outlier the earlier of: (i) the time at which
the timeframe established by the Customer for the disposition of the outlier expires (if the
Customer takes no action), or (ii) the time when Citi receives approval from the
Customer to process the outlier.

It is important to note that Citi Outlier Payment Detection is an informational support tool and
is not guaranteed to detect or prevent fraud in any way.

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 III. Receivables Services
A. Receiving a Payment
1. The clearing system forwards the instruction to Citi based on the locally defined
clearing cycle.

2. Citi credits the Account.

Any rejections or returns by Citi will be credited back to the payer account. The reason for
the return is communicated to the payer.

B. Cheque Deposits
The Customer can deposit its cheques over-the-counter at any Citi branch.

When depositing cheques, the Customer is required to complete a deposit slip to instruct
with details of the Citi account to credit the cheque proceeds. The deposit slips can be
obtained from any Citi branch.

All cheque deposits received by Citi on a working day (Sunday – Thursday) before the
cut-off time are sent for cheque clearing on the same day. A cheque deposited on a public
holiday or weekend will be sent to clearing on the next working day.

On the day the cheques are sent for clearing, Citi will credit the Customer’s Account with the
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total cheque deposit amount with a hold on funds. In Bahrain, cheque clearing is a same day
process. Upon receiving clearing status from the paying bank, Citi will credit the Account. If
(i) the instruction is returned, rejected or dishonored by the clearing system and/or payer
bank, or (ii) if no credit is received by Citi from the clearing system on the settlement date,
Citi will debit the Customer’s Account the amount originally credited for the dishonored item.

C. Over-the-Counter Cash Collections

The Customer can deposit cash over-the-counter at any Citi branch.

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 IV. Other Considerations
The Customer will make its own assessment of the legal, regulatory, tax and accounting
implications of the services provided by the Bank.

From time to time, the Bank shall deliver to the Customer fee schedules, procedures,
requirements, guides, manuals and other materials describing the procedures, requirements and
limitations surrounding the use of the services, in accordance with notice period requirements
under local laws and regulations.

The clearing of payments and receivables is governed by the rules set by the corresponding
clearing system. Both Citi and its customers must adhere to these clearing rules.

A simple and easy-to-use guide to the complaints procedure is available in bank branches and
can be obtained from your Relationship Manager.
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 V. Complaints
You may register any concerns or suggestions regarding the Bank’s service through the following
channels:

 Contact CitiService by email: citiservicebahrain.co@citi.com

 Contact assigned Relationship Manager

Kindly include details of the Customer’s representative, who the Bank can reach out to if further details
or clarifications are required and to whom the Bank should provide its response.

You will receive an acknowledgement within 5 days of receipt of your concern/complaint and name
of the person handling your concern/complaint.

If you are still not satisfied with the response received, please direct the matter to Country Compliance
Officer directly, whose details are mentioned in the simple and easy-to-use guide to the complaints
procedure that can be obtained from the above mentioned contacts.

Bank’s Country Compliance Officer will review the Customer complaint and will provide an appropriate
response, along with the various options that are available to the Customer to pursue the matter
further within Citibank, NA - Bahrain Branch.
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 VI. Conclusion
Thank you for choosing Citi Treasury and Trade Solutions (TTS) for your cash management
needs. Please feel free to contact your Citi relationship manager with any additional questions
that you have regarding TTS services.
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Treasury and Trade Solutions citi.com/treasuryandtradesolutions
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