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BANK OF ALBANIA

AIPS PROJECT

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• What is AIPS?

• AIPS Project Implementation Plan

• AIPS Activities & Responsibilities

• AIPS Operational Security & Resilience

• AIPS Project Communications

• Questions & Answers

Introduction

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What is AIPS?

• Settlement of Systemically Important Payments.

• RTGS Core Principles.

• AIPS System Components.

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Settlement of Systemically Important Payments

Payments between settlement participants (bank-to-bank payments) including

payments to and from the BOA;  Payments on government securities transactions, using the DVP mechanism;  Net transfers of funds requiring designated time settlement; and  Large-value customer payments.

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RTGS Core Principles

• Bank for International Settlements (BIS).

• European Central Bank (ECB).

• International Standards Organisation (ISO).

• SWIFT Standards

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AIPS System Components.

• SWIFT FIN Y-Copy Service

• AIPS Webstation

• AIPS Central System

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AIPS Main Components

RTGSRTGS SettlementSettlement

PaymentsPayments &&

TransfersTransfersAcc

ess

and

Rou

tin

gWorkstation

BOA SystemBOA System

CBT

Webstation

Participant SystemParticipant System Delivery SystemDelivery System

S.W.I.F.T.

I/FY-Copy

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AIPS Architecture

BOASWIFT CBT

Participant A AIPS System

SWIFT CBT

ParticipantWebstation AIPS VPN

Network

SWIFT FINY-CopyService

Access &RoutingModule

ExternalModule

Participant B

SWIFT CBT

ParticipantWebstation

SETSsubsystem

SettlementModule

RTGSAccounting

Space

BOA Payments& Transfers

Net SettlementBatches

PACSsubsystem

PaymentsModule

AccountTransfersModule

Database andReporting

Module

PACSAccounting

Space

Accounting &Treasury

ManagementSystem (ATM)

DatabaseBilling Module

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SWIFT FIN Y-Copy

• SWIFT Alliance to initiate/receive Payments.

• Security provided by SWIFT Network.

• Double Authentication by SWIFT.

• SWIFT Close-User-Group.

• SWIFT stores all payments until AIPS confirms settlement.

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Flow Of Messages

• The sending bank remits an AIPS SWIFT payment (MT103/202) to receiving bank.

• Minimal settlement information is forwarded to AIPS (MT096)

• SWIFT FIN Y-Copy awaits settlement confirmation from AIPS (MT097)

• The original payment is released to the receiving bank.

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SWIFT and AIPS

SWIFT FIN Y-Copy

SENDER RECEIVER

AIPS

MT103/202 MT103/202

MT096 MT097

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AIPS Webstation

AIPS uses the Participant Webstation to support RTGS non-value functions including:

• on-line access to account balance and activity information;• on-line access to queued payment information;• on-line information for the total sum of queued inward

payments (to be decided);• on-line access to perform reprioritisation of queued

payments; and• monitoring of RTGS Central System operational status.

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AIPS Central System

The Central System performs three main roles:• RTGS Accounting on behalf of Participants

and associated liquidity management facilities.

• BOA inward and outward AIPS Payments.• BOA account transfers across Participant

Accounts.

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AIPS Project Implementation Plan

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AIPS Activities & Responsibilities

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AIPS Operational Security & Resilience

Communication Environment – encrypted VPN

Access Security Authentication Smart Card Logon Fallback Site and Installations Remote Logging VPN Fallback

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AIPS Project Communications

• AIPS Participant Coordinators Meetings

• AIPS Project Documentation and communications

• AIPS Support Email Address

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Questions & Answers

• Over To You