1. Description
This FX & Remittance service request enables TPPs to initiate FX & Remittance Quote Requests to a number of LFIs, providing them with all the necessary data required for producing “actionable quotes” and returning their details to the initiating TPPs. In the context of the Open Finance FX & Remittance quote initiation, the term “actionable quote” refers to a quote generated by an LFI, for FX conversion and/or Remittance services, and can be used by the recipient user to initiate an FX conversion and/or Remittance request at the FX rate & charges specified in the quote, subject to no change of the information provided to the LFI.
The FX & Remittance quote initiation can take place both with LFIs that already hold Users' accounts or with LFIs that do not currently hold any Users accounts. Therefore, for the FX & Remittance quote initiation Users do not need to provide explicit consent to TPPs for initiating the quotes with LFIs.
As part of the FX & Remittance quote initiation, Users may decide to action on a quote with an non-account holding LFI. In this case, the TPP will initiate the dynamic account opening request with the selected LFI, as this is defined in (TBC).
Note
The FX & Remittance Services Quote capability is optional for LFIs. LFIs are not mandated to implement it, but they are able to do so on a voluntary basis for commercial, competitive or other reasons deemed appropriate.
1.1 Scope
The scope of the FX & Remittance Quote Initiation service is as follows:
1.1.1 Customer Segments
The scope of the FX & Remittance Quote Initiation service in relation to the customer segments is shown below:
Consumers | SME | Corporates |
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1.1.2 Functionality
The scope of the FX & Remittance Quote Initiation service from the functionality perspective is shown below:
FX & Remittance Quote Functionality (Initial Scope) | |||
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# | Functionality | Description | In Scope (Y/N) |
Create FX & Remittance Quote |
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Retrieve FX & Remittance Quote |
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Not required. TPPs can store the FX & Remittance Quotes as their validity period is usually short. | |
Remove/delete FX & Remittance Quote |
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Not required. LFIs can delete the quotes when they expire as their validity period is usually short. | |
Update FX & Remittance Quote |
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Not required. LFIs can generate new quotes if required. | |
Approve/Reject FX & Remittance Quote |
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Quote Status update |
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1.2 Example User Story - FX & Remittance Quote Initiation (UC-3)
As a User (Consumer or SME Business),
I want to provide a TPP with my FX & Remittance requirements and share this information with one or more FX Houses requesting their Quote(s),
so that I can effortlessly see and compare a number of FX & Remittance quotes from a variety of providers for my FX & Remittance needs.
1.3.Process flow
The below diagram depicts the high level process flow for the Open Finance X & Remittance Quote Initiation service:
2. User Journey
3. Customer Experience
3.1 Rules & Guidelines
# | Step | Rules & Guidelines |
|---|---|---|
FXRQT-1 | Collect Quotation Parameters | Basic Quote Parameters TPPs MUST: 1.1 Enable Users to select/provide the parameters related to the FX & Remittance Quote they need to receive. These parameters include:
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Additional Quote Parameters TPPs MUST: 1.2 Enable Users to select/provide additional parameters related to the FX & Remittance Quote they need to receive. These parameters include:
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FXRQT-2 | Quote Review & User Confirmation | TPPs MUST: 2.1 Allow Users to review the quote parameters collected by the TPP that will be used in the quote initiation requests to the LFIs. 2.2 Enable Users to confirm that they are happy to proceed to the quotate initiation process, using the quote parameters presented by the TPPs. 2.3 Clearly communicate to Users that by confirming to proceed with the quote initiation process, they provide their consent to TPPs to share their identity information with the LFIs, if they have selected to receive personalized FX & Remittance Quotes. |
FXRQT-3 | Quote Initiation Requests | TPPs MUST: 3.1 Initiate the quotation requests to the target LFIs using the Open Finance Platform (OFP). 3.2 Submit to OFP the quote initiation requests with the Users' quotation parameters confirmed by the Users. 3.3 Generate multiple quote API requests, one for each LFI that is required to generate a quote based on the Users' preferences. The quote request API messages that will be sent to each LFI via the OFP will be the same for all LFIs. Note: This is because the OFP does not have the capability of broadcasting a single API message to multiple recipients. 3.4 Each FX & Remittance Quote Initiation Request, will contain the information shown below:
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OFP MUST: 3.5 Allow TPPs to submit each individual quote initiation request without any additional MFA or authorization from the User. 3.6 Send the quote Initiation Request to each LFI for generating a FX & Remittance Quote using the Users' quote parameters included in the quote Initiation Request. | ||
FXRQT-4 | Quote Generation | LFIs MUST: 4.1 Be able to receive the FX & Remittance Quote Initiation Requests and use the Users' provided information to execute their FX & Remittance quotation process in near-real-time. 4.2 Check the User Identification details, if provided, and determine whether the FX & Remittance Quote request is for one of their existing users (i.e. account holders) or not.
4.3 LFIs MUST quote the same actual (deal) FX rate and charges as it would be offered to the User via the LFIs' direct channels such as mobile or online banking, for personalized and non-personalized quotes. when using the same quote parameters. 4.4 Be able to calculate the required FX conversion and money transfer charges for the different types of FX & Remittance services and include these in their quote response message.
4.5 Generate and assign a unique quote id (i.e. reference number) for every quote they generate. 4.6 Populate the appropriate field in the quote indicating whether they support the dynamic account opening capability, in the case of identifying that Users requesting the quotes are not existing customers of the LFIs. This will allow TPPs to provide the appropriate messaging and guidance to Users of how to action the quotes from their LFI. 4.7 Respond with quotes to all quote initiation requests from every TPP, irrespective of whether they have a contractual agreement with the TPP or not. 4.8 Respond to each quote initiation requests by sending their quotation data in the response messages back to the OFP. The FX & Remittance quote will contain the information as per https://openfinanceuae.atlassian.net/wiki/spaces/standardsv2draft2/pages/309723219/FX+Remittance+Quote+Initiation#4.7-FX-%26-Remittance-Quote-Response 4.9 Delete all the quote parameters they have received a part of the quotation process when the quotes have expired and Users have not accepted and actioned the quotes from these LFIs. |
OFP MUST: 4.10 Forward the FX & Remittance quotation responses back to the initiating TPPs. | ||
FXRQT-5 | Quotes Display to Users | TPPs MUST: 7.1 Display to Users all the quotation information and options received by the insurer LFIs, including additional conditions and terms. 7.2 Allow Users to sort or filter the provided quotes based on a number of different preferences such as:
7.3 Display the quotes in a neutral way as the default, in the cases Users have not selected any preference of sorting and filtering the generated quotes. |
INSQT-8 | Quote actioning & redirection to LFIs | TPPs MUST: 8.1 Advise Users how to proceed in order to action on received quotes and purchase a policy based on them. 8.2 Enable Users to use a received quote for purchasing an insurance policy using their existing BAUs processes (directly from them), in the cases they have existing contractual agreements with the selected insurer LFIs that support this. 8.3 Be able to redirect Users to the direct channel of the LFI selected by User, using a unique quote identifier, so that Users can review again the quote details and action on them. LFIs MUST: 8.4 Enable TPPs to redirect Users to their direct channels, using a unique quote identifier.
8.5 Notify the TPPs when a specific quote:
8.6 Set the state of the Quote resource to Completed in the case Users have purchased the policy. 8.7 Set the state of the Quote resource to Not Completed in the case they are not able to allow Users to complete the purchase of the policy. 8.7 Set the state of the Quote resource to Expired, in the case a Quote in Accepted state has not been completed in time and has expired. |
3.4 Journey Variations
5.2.2 Requirements
ID | Requirement |
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BNK-FXQI-REQ-1 | The Open Finance Enhanced FX solution(s) MUST enable TPPs to acquire User’s identity information such as the Emirates ID or passport number as a prerequisite for getting personalised quotes from LFIs or FX Houses. This may happen during the User onboard process or at a later date, before requesting to get any personalised FX & Remittance quotes. TPPs MUST allow users to provide this either: a) using a data sharing consent with an LFI or FX House holding an account for the Users (as per https://openfinanceuae.atlassian.net/wiki/spaces/Internal/pages/247627777/Open+Finance+Enhanced+FX+Proposition#5.1-Data-sharing-for-FX-%26-Remittances-Services) b) manually In both cases TPPs are NOT required to validate the Users' identity information. The Customer Identification details, MUST include the customer’s:
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BNK-FXQI-REQ-2 | The Open Finance Enhanced FX solution(s) MUST allow Users to provide TPPs with the type of FX & Remittance service (FX conversion, Remittance or both) for which they want to receive quotes. |
BNK-FXQI-REQ-3 | The Open Finance Enhanced FX solution(s) MUST enable Users to select the FX Houses that they want to receive quotes from, based on the type of the FX Service required. If Users do not select, the Open Finance Enhanced FX solution(s) MUST enable TPPs to request and get quotes from ALL the FX Houses onboarded in the Open Finance ecosystem. This is irrespective of the FX Houses with which Users have accounts and contractual relationships with. |
BNK-FXQI-REQ-4 | The Open Finance Enhanced FX solution(s) MUST enable Users to select the LFIs that they want to receive quotes from. Users MUST only select LIFs with which they have an active account. If Users do not select, the Open Finance Enhanced FX solution(s) will not request any quotes from any LFIs onboarded in the Open Finance ecosystem. |
BNK-FXQI-REQ-5 | The Open Finance Enhanced FX solution(s) MUST enable TTPs to offer Users the option to: a) Get personalised quotes from FX Houses (and/or LFIs). Users selecting this option provide explicit consent to TPPs to share their identity information (e.g. Emirates ID) with Fx Houses/LFIs during the quotation process. b) Get non-personalised quotes allow from FX Houses only. Users selecting this option do not allow TPPs to share their identity information (e.g. Emirates ID) with Fx Houses during the quotation process. |
BNK-FXQI-REQ-6 | The Open Finance Enhanced FX solution(s) MUST allow TPPs to initiate the quotation requests to the target FX Houses (and/or LFIs) using the API Hub. TPPs will include in the quote requests all the information required for the FX & Remittance quote generation. The API HUB will be forwarding the quote requests to the FX Houses (and/or LFIs) including the users' provided information required for the generation of the quotes. The FX & Remittance quote initiation request will contain the following information:
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BNK-FXQI-REQ-7 | The Open Finance Enhanced FX solution(s) MUST enable FX Houses (and/or LFIs) to receive the FX & Remittance quote requests and use the Users' provided information to execute their FX & Remittance quotation process in near-real-time. Based on this, FX Houses (and/or LFIs) will be able to calculate the required FX conversion and money transfer charges for the different types of FX & Remittance services and include these in their quote response message. FX Houses (and/or LFIs) may also include any additional conditions, terms or limitations related to the quote, if required and the validity period of the quote. Each quote will have a unique quote id (i.e. reference number) The FX & Remittance quote will contain the following information:
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BNK-FXQI-REQ-8 | The Open Finance Enhanced FX solution(s) MUST enable FX Houses to provide in the quote response personalised or preferential exchange rates and remittance fees, for quotes from existing users already having accounts with the FX Houses. |
BNK-FXQI-REQ-9 | The Open Finance Enhanced FX solution(s) MUST enable FX Houses (and/or LFIs), to respond to the FX & Remittance quote initiation requests by sending with their quotation data in the response messages back to the API Hub. |
BNK-FXQI-REQ-10 | The Open Finance Enhanced FX solution(s) MUST allow the API Hub to forward the FX & Remittance quotation responses back to the initiating TPPs. |
BNK-FXQI-REQ-11 | The Open Finance Enhanced FX solution(s) MUST allow TPPs to display all the FX & Remittance quotation information and options to Users including any additional conditions and terms, and advise Users how to proceed in order to take action on the received quotes. |
BNK-FXQI-REQ-12 | The Open Finance Enhanced FX solution(s) MUST enable TPPs to allow Users to sort or filter the provided quotes based on a number of different preferences such as:
The Open Finance Enhanced FX solution(s) MUST allow TPPS to display the quotes in a neutral way as the default, in the cases Users have not selected any preference of sorting and filtering the generated quotes. |
BNK-FXQI-REQ-13 | The Open Finance Enhanced FX solution(s) MUST allow TPPs to enable Users, who have existing accounts and contractual agreements with the FX Houses selected for their FX quotes, to use a received quote for initiating a service request in response to their quote, as per the requirements defined in https://openfinanceuae.atlassian.net/wiki/spaces/Internal/pages/247627777/Open+Finance+Enhanced+FX+Proposition#5.4-Remittance-Service-Initiation |
BNK-FXQI-REQ-14 | The Open Finance Enhanced FX solution(s) MUST allow TPPs to enable Users, who do not have existing accounts and contractual agreements with the FX House they selected for their FX quotes, to initiate a dynamic account opening service request and to be redirected to the FX Houses, for completing the account opening, as per the requirements stated in https://openfinanceuae.atlassian.net/wiki/spaces/Internal/pages/247627777/Open+Finance+Enhanced+FX+Proposition#5.3-Account-Opening-Service-Initiation. |
BNK-FXQI-REQ-15 | The Open Finance Enhanced FX solution(s) MUST NOT allow Users’ FX & Remittance quote data to be stored in the API Hub. |
4. FX & Remittance Quote Initiation Common Rules & Guidelines
4.1 FX & Remittance Service Type
TTPs MUST:
4.1.1 Allow Users to select the type of FX & Remittance Service for which they want to receive quotation from LFIs. The available types of services in the Open Finance scope are:
FX Conversion service only
Remittance (international money transfer) service only
Both FX Conversion and Remittance services
4.2 FX & Remittance Services LFIs
TTPs MUST:
4.2.1 Provide Users with the list of available FX & Remittance Services LFIs that will be able to provide FX & Remittance Services quotes based on their selection of FX & Remittance Service type. For some combinations there may not be any FX & Remittance Services LFI that will be available for quotation. In this scenario, TPPs MUST inform Users appropriately and request them to select different FX & Remittance Service type.
4.2.2 Allow Users to select the FX & Remittance Services LFIs that they want to receive quotes from, based on the available LFIs, as stated in 4.2.1. If Users do not select any specific LFIs, TPPs MUST initiate and request get quotes from ALL LFIs onboarded in the Open Finance ecosystem for FX & Remittance Services.
Note: This is irrespective of having contractual relationships with the selected FX & Remittance Services LFIs or not.
4.3 Personalized FX & Remittance quotes
4.3.1 Allow the Users the option to EITHER:
a) Get personalised quotes from LFIs. Users selecting this option provide explicit consent to TPPs to share their identity information (e.g. Emirates ID as per https://openfinanceuae.atlassian.net/wiki/spaces/standardsv2draft2/pages/309723219/FX+Remittance+Quote+Initiation#4.4-User%E2%80%99s-Identity-Information) with LFIs during the quotation process, OR
b) Get non-personalised quotes from LFIs. Users selecting this option do not allow TPPs to share their identity information (e.g. Emirates ID) with LFIs during the quotation process, even if TPPs already have the information.
4.4 User’s Identity Information
TTPs MUST:
4.4.1 Be able to acquire User’s identity information such as the Emirates ID or passport number as a prerequisite for getting personalised quotes from LFIs. This may happen during the User onboard process or at a later stage, before requesting to get any personalised FX & Remittance quotes. TPPs MUST allow Users to provide this EITHER:
a) using a data sharing consent with an holding an account for the Users (as per TBC)
b) manually, by entering this information via the UI.
In both cases TPPs are NOT required to validate the Users' identity information.
4.4.2 Be able to acquire the following Customer Identification details:
Name
Emirates ID (or other official ID for expatriates)
Business license (if the customer is a corporate entity).
Contact details.
4.5 FX Conversion Details
TTPs MUST:
4.5.1 Enable Users to select/provide the parameters related to the FX Conversion of the quote, if they need this service. These parameters include:
Currency Pair: The two currencies that will be involved in the transaction (e.g., USD/AED, EUR/INR) with clear indication which is the base currency and which is the quote currency
Transaction Amount: The amount of the base currency to be exchanged or its equivalent in the quote currency
Delivery Instructions: The destination account or remittance details for receiving the funds, if applicable
4.6 Remittance Details
TTPs MUST:
4.6.1 Enable Users to select/provide the parameters related to the Remittance of the quote, if they need this service. These parameters include:
Basic Remittance Details
Payment Amount & Currency (as per https://openfinanceuae.atlassian.net/wiki/spaces/3fd5ba01d7b34271a09d62a525791c2b/pages/304548559/International+Payments#4.2-Payment-Amount-%26-Currency)
Creditor Identification details (as per https://openfinanceuae.atlassian.net/wiki/spaces/3fd5ba01d7b34271a09d62a525791c2b/pages/304548559/International+Payments#4.3-Creditor-Identification-for-International-Payments)
Debtor Reference (as per https://openfinanceuae.atlassian.net/wiki/spaces/3fd5ba01d7b34271a09d62a525791c2b/pages/304550424/Common+Rules+and+Guidelines#5.-Debtor-Reference) (Optional)
Creditor Reference (as per https://openfinanceuae.atlassian.net/wiki/spaces/3fd5ba01d7b34271a09d62a525791c2b/pages/304550424/Common+Rules+and+Guidelines#6.-Creditor-Reference)
Additional Remittance Details
External Payment Purpose Code (as per https://openfinanceuae.atlassian.net/wiki/spaces/3fd5ba01d7b34271a09d62a525791c2b/pages/304548559/International+Payments#4.7-External-Purpose-Code). Purpose of the transaction (e.g., payment for goods, personal remittance, salary payment). Required to ensure compliance with (AML and counter-terrorist financing (CTF) laws in UAE.
Payment Order Priority (as per https://openfinanceuae.atlassian.net/wiki/spaces/3fd5ba01d7b34271a09d62a525791c2b/pages/304548559/International+Payments#4.4-Payment-Order-Priority-for-International-Payments)
Payment Charge Model (as per https://openfinanceuae.atlassian.net/wiki/spaces/3fd5ba01d7b34271a09d62a525791c2b/pages/304548559/International+Payments#4.5-Payment-Charge-Model-for-International-Payments)
4.7 FX & Remittance Quote Response
LFIs MUST:
4.7.1 Respond to each quote initiation requests by sending their quotation data in the response messages back to the OFP. The FX & Remittance quote will contain the following information:
Currency Pair: The two currencies involved in the transaction (e.g., USD/AED, EUR/INR) with clearly indication which is the base currency and which is the quote currency
Exchange Rate: The rate at which the base currency will be exchanged for the quote currency. This could include, Bid Rate, Ask Rate and Spread (if applicable)
Transaction Amount: The amount of the base currency to be exchanged or its equivalent in the quote currency.
Transaction Fees: Any fees or charges applied by the FX house, such as Processing fees and Service fees itemised
Total Amount Payable/Receivable: The exact amount the customer will pay in AED or another currency and the amount they will receive in the target currency after deducting fees.
Purpose of Transaction: Purpose of the transaction (e.g., payment for goods, personal remittance, salary payment). Required to ensure compliance with (AML and counter-terrorist financing (CTF) laws in UAE.
Date and Time of Quote: The timestamp of when the quote was generated.
Quote Validity Period: The duration for which the quoted exchange rate is valid for.
Settlement Details: Details of when and how the settlement will take place. Includes:
Settlement Date: When the transaction will be completed (e.g., T+2 for spot transactions).
Payment Method: How the funds will be paid (e.g., bank transfer, cash, card).
Delivery Instructions: The destination account or remittance details for receiving the funds.
Customer Identification: For compliance with UAE regulations, the FX House must include the customer’s (if applicable):
Name
Emirates ID (or other official ID for expatriates)
Business license (if the customer is a corporate entity)
Contact details
Existing Customer Flag: Flag to indicate whether the quoted user is an existing customer of the FX House or not
FX House (or LFI) Information including:
The full name, address, and license details of the FX House or LFI
Statement of compliance with UAE Central Bank regulations.
Reference Number: A unique transaction or quote reference number for tracking purposes.
Terms and Conditions including disclosures about:
The FX house's liability in case of errors or delays
Refund and cancellation policies
Any additional legal or compliance information
4.6 Quotation Data Cluster
A new data cluster has been created for the data required for quotation purposes. The details of the data included in the data cluster can be found in the API specification page.
4.7 FX & Remittance Quote Lifecycle States
A Quote moves between these states in its lifecycle:
Available: This is the initial state for all quotes. consents. The TPP initiates a Quote Initiation Request with the OFP - this creates the Quote object. The Quote is in a pending state waiting for the User to action it, either by proceeding with the policy purchase via the TPP broker or by being redirected to the LFIs direct channel. The Quote will remain in this state until:
a) it has been accepted by the User or
b) it reached the end of its validity and has expired
Expired: A Quote MUST move from the Available state to Expired when the Quote has expired its time duration of validity of 30 days. Expired is a terminal state.
Accepted: In this state, the Quote has been actioned by the User and it is now being reviewed for final confirmation by the LFI for the policy purchase. The Quote Consent will remain in this state until:
a) it has been fully completed and the policy purchase is confirmed or
b) it has changed state to the Not Completed by the LFI
c) Expired waiting for further information from User
Not Completed: A Quote MUST move from the Actioned to the Not Completed state when the LFI is unable to complete the action of purchasing of the policy by the user. This is a terminal state.
Completed: A Quote MUST move from Actioned to Completed when the action of purchasing of the insurance policy has been confirmed by the LFI.
8. Considerations
8.1 Constraints
FX Houses must only allow data sharing or FX & Remittance services initiation after authenticating Users using multi-factor authentication (MFA), as the Strong Customer Authentication Guidelines.
The API Hub does not have the capability of broadcasting a single API message to multiple recipients. Therefore, TPPs must generate multiple FX & Remittance quote API requests, one for each FX House (or LFI) that is required to generate a quote based on the Users' preferences. The quote request API messages sent to each FX House (or LFI) will be the same for all insurrer FX Houses (or LFIs).
FX houses are regulated by the Central Bank of the UAE (CBUAE), which defines their scope of operations. Their licenses typically do not permit trading in speculative or derivative financial products like futures contracts. Futures contracts fall under the jurisdiction of the Securities and Commodities Authority (SCA), which oversees brokers and financial institutions that provide derivative trading. FX Houses are designed to provide straightforward, practical financial services, such as currency exchange and remittances. Offering futures contracts requires specialized infrastructure, trading platforms, and expertise, which are outside their operational focus. The typical customers of FX Houses, consumers and SMEs, are more likely to need currency conversion or cross-border payments rather than complex trading instruments.
8.2 Dependencies
The FX Houses are able to provide real-time quotations of FX & Remittance services based a specific data provided to them by TPPs.
The FX Houses are able to lock a specific FX conversion rate as part of the quote, for a period of time long enough to allow TPPs to initiate the FX & Remittance services based on the values defined in the quote.
The connectivity between TPPs and FX Houses, for the Open Finance Enhanced FX functionality in scope will be taking place via the API Hub.
The ability for fast online account opening and onboarding of new users by FX Houses, partially depends on the quality of the data provided by the User and/or their existing FX House or LFI.
The FX Houses are able to support digital online account opening and onboarding based on the data provided to the them by TPPs and/or the Users in automated process and within certain timelines that may need to be defined by the Open Finance Standard.
8.3 Assumptions
It is expected that FX Houses will be able to provide the same data as LFIs for the Customer data and Transactions permissions as currently implemented by LFIs.
For data sharing functionality, FX Houses are subject to the same data retention period as required by LFIs.
For data sharing functionality, the maximum consent validity period will be 12 months in alignment with the Banking LFIs.
For quotation functionality, it is assumed that all FX Houses will require the same data set for providing an FX & Remittance quote, subject to the service requested.
For data opening functionality, it is assumed that all FX Houses will require the same data set for proceeding with the the dynamic account opening and onboarding. This set will be the superset of all the data requirements identified in the FX Houses market.
The API Hub will not be storing any users' Customer personal data or users' quotation data, instead data will only be transferred by the sharing insurer FX Houses (or LFIs) to the TPPs.
The FX Houses will be able to use the Centralized Authentication and Authorization process offered by the Open Finance Platform, as defined in Centralized Authentication and Authorization.
The FX Houses will be responding with quotes to all requests for FX & Remittance quotes, subject to supporting the services in their own channels (e.g. specific currency pairs or inability to perform certain money transfers).