business
Payments

Client’s Region:

Germany

Counterparty’s Regions:

Eastern Europe

Problem Resolved:

Revenue Collection Issue

The Issue:

A German consumer goods manufacturer had been successful in its local market. However, upon entering a new market in Eastern Europe, they encountered an issue: their bank refused to process incoming payments for sold products.

The KEYtec Solution:

• Our specialists discovered that the supply contract fell short of standard AML requirements — it lacked some itemization of goods, pricing, and delivery methods.
• With KEYtec’s assistance, the client rectified these deficiencies. Our team then identified the most efficient payment route and provided the necessary details for fund crediting.

The Effect:

• Сlient opened an account with KEYtec.
• The issue was resolved successfully, and the funds were credited to the client’s account.

Client’s Region:

Greece

Counterparty’s Regions:

Europe and Central Asia

Problem Resolved:

Late Payments and Penalties

The Issue:

A company operating in the international maritime transportation sector faced challenges in paying port fees and charges. Due to varying payment processes and documentation requirements across different countries and ports, the company experienced delays and incurred penalties.

The KEYtec Solution:

• Conducted a compliance analysis for the regulatory requirements of each country and port the company interacts with, along with a review of the history of delays and fines.
• Created a payment calendar accounting for holidays, weekends, and other local peculiarities in different countries.
• Developed protocols for employees to follow in instances of delays or unexpected issues, including procedures for quickly assembling and sending the required documentation.
• Collaborated with local experts in key countries to expedite issue resolution and reduce response times.

The Result:

• Fines and delays have been significantly reduced following the implementation of the new procedures.
• The company’s reputation has improved, leading to an increase in order volume.
• Payment acceleration: KEYtec’s service has enabled faster payments to a number of countries our customers had the most frequent delays.

Client’s Region:

Switzerland

Counterparty’s Regions:

Europe, Africa, Asia

Problem Resolved:

Establishing Funding for Overseas Divisions

The Issue:

A Swiss commodities trader was unable to secure funding for its international representative offices from its existing bank. The primary reasons for this refusal included non-compliance of loan agreements with international AML requirements and a lack of transparency in the ownership structure.

The KEYtec Solution:

• Finalization of Loan Agreements: Aligned loan agreements with international AML requirements, specifying amounts, market interest rates, and terms for debt provision and servicing.
• Ownership Structure Optimization: Proposed changes for a more transparent ownership structure that accurately reflects the relationship between the parent company and its international offices.
• Loan Repayment Control: The client receives automated notifications three months before each loan’s repayment date.
• Financial Condition Assessment: Conducted a comprehensive financial audit and presented alternative financing options of subsidiaries and rep offices, including potential financial assistance from shareholders and UBOs.

The Result:

• The company successfully secured payments through the Swiss payment service KEYtec.
• The existing Swiss bank lifted its restrictions and agreed to finance the client’s international offices.

Client’s Region:

Poland

Counterparty’s Regions:

Europe

Problem Resolved:

Speeding Up Payments

The Issue:

An international IT company encountered frequent obstacles in the realm of B2B payments. Banks regularly rejected payments due to incomplete or incorrect documentation, causing significant delays in business operations.

The KEYtec Solution:

• Documentation Analysis: Reviewed existing documentation, specifically focusing on pricing sections. Identified weaknesses such as unclear pricing structures and insufficient detail in calculations and final service costing.
• Standardized Documentation: standardized templates for transactions related documents, incorporating all required elements as stipulated by banks—identification of parties involved, description of services/goods, and the payment chain, etc.
• Payment Tracking: started monitoring the status of each payment, enabling quick data collection in response to intermediary banks queries.

The Result:

• The implementation of new procedures eliminated funds freezing and expedited bank transactions.
• Issues related to AML and other compliance checks were successfully addressed. Some payments were transitioned to the KEYtec service.

Client’s Region:

Europe

Counterparty’s Regions:

Europe, Asia

Problem Resolved:

Removal of Payment Quantity Restrictions

The Issue:

One of the largest distributors of beverages in Central and Eastern Europe, with over 20 years of market experience, encountered difficulties after opening an account with a Luxembourg bank. The client was burdened by restrictions such as a maximum limit on the number of monthly payments, a mandatory minimum deposit, and limitations on revenue collection from certain markets.

The KEYtec Solution:

• AML Analysis: Conducted a comprehensive review of all the client’s transactions to assess compliance risk.
• Risk Mitigation: Identified and eliminated high-risk transactions and regions to reduce the overall compliance risk.

The Result:

• The client transitioned to using KEYtec’s payment solutions and relocated its banking operations from Luxembourg to Switzerland, thereby eliminating the previously imposed restrictions.

Client’s Region:

United Kingdom

Counterparty’s Regions:

Worldwide

Problem Resolved:

Reducing Banking Costs

The Issue:

A construction company engaged in small international projects faced challenges with payments to contractors, suppliers of materials, and construction equipment. Complicated contracts and disagreements over costs and timing frequently led to disputes and subsequent payment delays. Banks demanded extensive documentation for each transaction, adding further strain on the finance department.

The KEYtec Solution:

• Contract Analysis: Reviewed all current and past contracts to identify recurring bottlenecks and documentation requirements. Created standardized payment terms and a glossary that banks could easily understand to eliminate future ambiguity and disagreements.
• Debt Reconciliation: Implemented reconciliation acts for compliance review to expedite decision-making and reduce dispute resolution time.

The Result:

• Payment delays were substantially reduced, and the documentation quality for banks improved.
• Disputes decreased by over a third, saving the company the costs associated with frequently opening new accounts and sourcing new servicing banks.
• Improved transparency and speed in payments strengthened business relationships with contractors and suppliers.
• Some payments were transitioned to KEYtec’s service, which proved faster and more efficient than traditional banks.

Client’s Region:

France

Counterparty’s Regions:

Europe, USA, Asia, Africa

Problem Resolved:

Reducing Risks in International Transactions

The Issue:

The company, a manufacturer and supplier of medical equipment, deals with numerous suppliers and partners, elevating compliance control risks with banks. Payments are often halted for additional verification because counterparties could potentially be on sanctions lists or have unclear fund origins. This results in delayed operations and increased transaction costs.

The KEYtec Solution:

• Dedicated Account Manager: Appointed a dedicated manager responsible for coordinating all international payments, transactions, vendor interactions, and document verifications.
• Personalized Compliance Plan: Created a tailored compliance strategy based on a detailed analysis of client payments, incorporating measures for rapid identification and risk management for each counterparty.

Pre-Assessment and Monitoring:

Implemented real-time screening of counterparties against various databases and sanctions lists.

The Result:

• Enhanced both the client’s financial and operational efficiency by mitigating risks and expediting decision-making processes.
• Enabled the company to focus on its core business activities and more efficiently collaborate with international clients.