FX & Remittance Quote Initiation
- Alexandros Dimitrakoudis
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 Dynamic Account Opening.
The above functionality will enable the participation of FX Houses in the Open Finance program and promote a more competitive market environment where Users can benefit from the best FX deals available.
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 |
(TBC) |
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) | |||
|---|---|---|---|
# | Functionality | Description | In Scope (Y/N) |
Create FX & Remittance Quote |
| ||
Retrieve FX & Remittance Quote |
| Not required. TPPs can store the FX & Remittance Quotes as their validity period is usually short. | |
Remove/delete FX & Remittance Quote |
| Not required. LFIs can delete the quotes when they expire as their validity period is usually short. | |
Update FX & Remittance Quote |
| Not required. LFIs can generate new quotes if required. | |
Approve/Reject FX & Remittance Quote |
| ||
Quote Status update |
| ||
1.2 Example User Story - FX & Remittance Quote Initiation
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 LFIs 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 FX & Remittance Quote Initiation | 4.7 FX & 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. |
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| OFP MUST: 4.10 Forward the FX & Remittance quotation responses back to the initiating TPPs. 4.11 NOT store any Users’ FX & Remittance quote data which have passed through as part of the quotation process. |
FXRQT-5 | Quotes Display to Users | TPPs MUST: 5.1 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. 5.2 Allow Users to sort or filter the provided quotes based on a number of different preferences such as:
5.3 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. |
FXRQT-6 | Quote Actioning | TPPs MUST: 6.1 Advise Users how to proceed in order to action on received quotes for the FX & Remittance services they selected. 6.2 Enable Users, who have existing accounts and contractual agreements with the LFI of the preferred quote, to use the received quote for initiating the quoted FX & Remittance services, as defined in https://openfinanceuae.atlassian.net/wiki/spaces/Internal/pages/247627777/Open+Finance+Enhanced+FX+Proposition#5.4-Remittance-Service-Initiation 6.3 Enable Users, who do not have existing accounts and contractual agreements with the LFI of the preferred quote, to initiate a dynamic account opening service request and to be redirected to the LFI for completing the account opening, as per defined in Dynamic Account Opening. This MUST only be applicable in cases that LFIs have indicated in their quote that they support the dynamic account opening capability.
6.4 Use the quote ID to update the status of the FX & Remittance Quote resource as “Accepted” by the User, when Users select a prefered quote for actioning in all cases except for the case defined in 6.3.1 |
FXRQT-7 | Quote Status Update | LFIs MUST: 7.1 Notify the TPPs when a specific FX & Remittance Quote:
7.2 Set the state of the FX & Remittance Quote resource to Completed in the case Users have completed the quoted FX& Remittance services. 7.3 Set the state of the FX & Remittance Quote resource to Not Completed in the case they are not able to action the quoted FX& Remittance services. 7.4 Set the state of the FX & Remittance Quote resource to Expired, in the case a Quote in Accepted state has not been completed in time and has expired. |
3.2 Journey Variations
TBC
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 FX & Remittance Quote Initiation | 4.4 User’s 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 Customer Data | 3.2.2 Data Sharing for FX & Remittance Services)
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 International Payments | 4.2 Payment Amount & Currency)
Creditor Identification details (as per International Payments | 4.3 Creditor Identification for International Payments)
Debtor Reference (as per 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 LFI, 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 LFI 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 LFI or not
LFI Information including:
The full name, address, and license details of the 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 LFI's liability in case of errors or delays
Refund and cancellation policies
Any additional legal or compliance information
4.8 FX & Remittance Quote Lifecycle States
A Quote moves between these states in its lifecycle:
Available: This is the initial state for all quotes. The TPP initiates a Quote Initiation Request via the OFP to the LFI - this creates the Quote object. The Quote is in a pending state waiting for the User to action it, by proceeding with accepting the Quote at the TPP. 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. Expired is a terminal state.
Accepted: In this state, the Quote has been actioned by the User and a Fx & Remittance services initiation request has been generated by the TTP to the LFI via the OFP. The Quote Consent will remain in this state until:
a) the Consent for the Fx & Remittance services initiation related to the quote has been fully authorized by the User
b) it has changed state to the Not Completed by the LFI
c) Expired waiting for Consent Authorization from the User
Not Completed: A Quote MUST move from the Actioned to the Not Completed state when the User has not provided to the LFI the authorization for the Fx & Remittance services initiation consent related to the quote. This is a terminal state.
Completed: A Quote MUST move from Accepted to Completed when the Consent for the Fx & Remittance services initiation related to the quote has been fully authorized by the User.
5. FX & Remittance Service Initiation
5.1 Example User Stories
5.1.1 FX Currency Conversion Service Initiation from LFIs
As a User (Consumer or SME Business),
I want to provide my consent to a TPP to:
to use my payment account held with an LFI for initiating a Single Instant Payment of a fixed amount, in local currency, to my beneficiary account held at the LFI which provided my selected FX Services quote,
use my payment account held with the FX Services quoted LFI for initiating a currency conversion from local currency to the currency of my choice
so that I can pay take advantage of a completive deal on the FX currency conversion, as per the quote i have received.
5.1.2 Remittance Service Initiation from LFIs
As a User (Consumer or SME Business),
I want to provide my consent to a TPP to:
to use my payment account held with an LFI for initiating a Single Instant Payment of a fixed amount, in local currency, to my beneficiary account held at the LFI which provided my selected FX Services quote,
use my payment account held with the FX Services quoted LFI for initiating a single International Payment (Remittance) of a fixed amount and of different currency to a cross-border beneficiary account owned by a business or an individual,
so that I can pay the relevant beneficiary easily while getting a completive deal on the FX currency conversion and the remittance charges, as per the quote i have received.
5.2 Process flow
The below diagram depicts the high level process flow for the Open Finance FX & Remittance Service Initiation:
5.2.1 Process flow
5.3 User Journey
5.4 Customer Experience
5.4.1 Initiate Funding Payment
5.4.2 FX & Remittance Service Initiation from a Quote
5.5 Rules & Guidelines
# | Step | Rules & Guidelines |
|---|---|---|
FXIN-1 | Funding Payment | TTPs MUST: 1.1 Enable Users to initiate a “funding” payment from an existing LFI account to an account with the selected LFI for the FX Services based on a received quote. This may be either using a SIP as per https://openfinanceuae.atlassian.net/wiki/spaces/standardsv1dot2final/pages/277939953/Single+Instant+Payments or using a long-lived consent as per https://openfinanceuae.atlassian.net/wiki/spaces/standardsv1dot2final/pages/277940444/Multi-Payments. The destination account in this payment will be the User’s account in the LFI selected based on the received quote. |
FXIN-2 | FX Services Initiation Consent | TTPs MUST: 2.1 Acquire User’s explicit consent for the initiation of the FX & Remittance services with the selected LFI based on the received quote. 2.2 Display the full details of the FX & Remittance services details, as defined in the quote, before asking for explicit consent. 2.3 Display the FX Service Quote validity period to the User. 2.4 Include in the the Consent the unique FX Services Quote id (i.e reference number). |
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| TTPs MUST: 2.5 Request consent for a single-use FX Services initiation consent, in direct relation to a quote.
2.6 Define in the the consent as the source account the User’s account at the selected LFI which has been defined as the destination account of the “funding” payment described in https://openfinanceuae.atlassian.net/wiki/spaces/standardsv2draft2/pages/309723219/FX+Remittance+Quote+Initiation#Funding-Payment |
FXIN-3 | Consent Staging | |
FXIN-4 | Hand-off to LFI | Example wording to use: ‘We will securely transfer to YOUR LFI to authorize and make the payment“. |
FXIN-5 | Authentication | LFI Authentication Only LFIs MUST: 5.1 Enable Users to perform authentication with their LFIs, as per the following sections: 5.2 Re-direct Users back to the TPPs, with information that the Consent has not been authorized, if User Authentication has failed or Users opted to cancel the authentication/authorization process. |
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| Centralized Authentication and Authorization (Federated) Only 5.3 As per https://openfinanceuae.atlassian.net/wiki/spaces/3fd5ba01d7b34271a09d62a525791c2b/pages/304547325 |
FXIN-6 | Authorization | LFIs MUST: 6.1 Display to Users the full details of the FX & Remittance services Consent. 6.2 Request Users to review and authorize the Consent before the FX & Remittance service initiation can take place. 6.3 Confirm to the OFP that the Consent has been authorized by all required authorizing Users. |
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| OFP MUST: |
FXIN-7 | Hand-off back to the TPP | |
FXIN-8 | FX Services Initiation | TTPs MUST: 8.1 Initiate the quoted FX & Remittance services in accordance with the authorized consent, without any further User involvement. |
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| LFIs MUST: 8.2 Trigger the FX services initiation process for the FX Services Consent immediately after receiving the payment initiation request from the OFP. |
FXIN-9 | FX Services Status Update | LFIs MUST: 9.1 Update the status of the initiated FX & Remittance services resources based on their progress to completion. |
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| TTPs MUST: 9.2 Check the status of the initiated FX & Remittance services for any updates and changes in their progress to completion. |
FXIN-10 | Confirmation to User | TTPs MUST: 10.1 Provide confirmation of the FX Services initiation to Users and updates in relation to their progress towards completion. |
FXIN-11 | Payment Notifications |
5.5 Journey Variations
TBC
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