What is correspondent branch in SAP FS-LOC-RU - Localization of Banking in Russia?

SAP Term: correspondent branch

• Component: FS-LOC-RU

• Component Name: Localization of Banking in Russia

• Description: A bank branch that receives all interbank operations. In Russia, interbank operations must go through a specific branch before going to the receiver bank. For example, if you want to transfer money from an account in Bank A to another account in Bank B, this transaction will go to a specific branch in Bank A before going to Bank B.

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• Key Concepts: 
  Correspondent branch is a term used in the FS-LOC-RU Localization of Banking in Russia component of SAP. It is a type of bank branch that is used to facilitate transactions between two different banks. It acts as an intermediary between the two banks, allowing them to transfer funds and other assets without having to go through the traditional banking system. 
  
  How to use it: 
  In order to use the correspondent branch feature, you must first set up a correspondent relationship between two banks. This can be done through the SAP system by entering the details of both banks into the system. Once this is done, you can then use the correspondent branch feature to transfer funds and other assets between the two banks. 
  
  Tips & Tricks: 
  When setting up a correspondent relationship between two banks, it is important to ensure that all of the details are correct and up-to-date. This will help ensure that any transactions made through the correspondent branch are secure and accurate. Additionally, it is important to keep track of any changes made to the correspondent relationship, as this could affect future transactions. 
  
  Related Information: 
  The FS-LOC-RU Localization of Banking in Russia component of SAP also includes features such as payment processing, account reconciliation, and currency conversion. Additionally, it provides support for various banking regulations in Russia, such as anti-money laundering laws and capital adequacy requirements.