FAQs

Onboarding

  • Yes, onboarding process is very straightforward
  • To join Buna network participant should complete KYC documentation and sign the participation agreement
  • Kick-off the onboarding process which includes configuring connectivity with Buna system, system integration testing (SIT), attend portal training and pre-production preparation session, then complete market rehearsal for each currency before going live 
  • This process’s timeline varies based on each participant, but it usually takes 4-6 weeks 
  • Yes, Buna’s legal framework is standard for all parties in the ecosystem to avoid conflicts of law among the different jurisdictions
  • It has clear and well-defined roles and responsibilities in every aspect, for the neutrality, safety and good functioning of the payment system

  • The rules and the procedures are the documents which govern the System. The rules describe the mutual rights and obligations of the Participants and the System Operator, while the procedures describe certain operational procedures and other information and instructions relating to the System and its Participants

  • The agreement is the legal document by which the parties agree to be binding by the rules and procedures of the payment system

Charges

  • No, Buna charges are based on actual usage i.e. no upfront or recurring costs, no setup or licensing charges 
  • Transaction fees are fixed regardless of value
  • Transaction fees are transparent (no intermediary deductions), the transaction amount debited from the sending bank account gets credited in full into the receiving bank account
  • No, Buna doesn’t get involved in the bank’s pricing policies
  • Buna doesn’t mandate any pricing rules between the participants and their customers
  • Banks can package the service to their end customers (retail or corporate) at the price they deem suitable
  • No, Buna is a multilateral payment system
  • Unified fees will guarantee the same level of transparency to all participants
  • This applies uniformly across the entire region
  • Yes, Buna fees may change
  • Revisions should be performed in a transparent way and with consultation of the concerned stakeholders and advisory groups
  • Sufficient notice will be given to all participants before changes to fees will apply, as per Buna rules
  • Buna is not a profit centric organization and main focus will be on cost recovery
     
  • No, Buna will issue monthly invoice including all transactions charges
  • Monthly invoices will be issued to every participant with the total charges of the processed transactions classified by transaction category
  • No, correspondent banking charges are outside Buna system
  • Correspondent charges are totally subject to the correspondent bank agreement with Buna Participant without any involvement from Buna
  • Funding transaction is initiated outside Buna network and based on the relationship between Buna participant and its correspondent bank for any specific currency
  • Buna does not charge funding and defunding transactions
  • No, participants can use Buna in total freedom
  • There are no business obligations or minimum volumes
  • This applies to both transaction volumes and currency volumes (amounts) 

Payments Processing

  • No, Buna acts as a single window for performing cross-border payments across a large geography of multiple countries 
  • With single contract, single connection, and single account (per currency) a bank can send & receive real-time multi-currency payments
  • It’s very flexible to onboard new currency or transact with new banks since all that takes place incrementally without any extra cost or change in the participation agreement
  • Buna utilizes ISO messaging standard which simplifies banks connectivity
  • Yes, the settlement model of Buna is real-time basis
  • Thanks to the highly-scalable systems that Buna implemented, it takes an average of 2-3 seconds to process and settle a payment
  • This includes compliance and business/technical checks
  • Settlement in Buna is final and with immediate irrevocability
  • Yes, participant should use it’s existing SWIFT interface application and connectivity to access to Buna
  • Buna supports both MT and MX ( ISO20022 ) message format 
  • Yes, Buna portal provides you easy and secure access for monitoring and reporting
  • Buna portal enables participants to monitor the incoming/outgoing transactions
  • Portal is accessed via secure internet connection without purchasing any additional equipment
  • However, Transactions cannot be initiated through the portal

Currencies

  • Yes, we can add currency at any time
  • Onboarding new currencies on Buna is an ongoing process and all participants will be informed upon onboarding any new currency
  • To add any new currency for participant, whether existing on Buna or new onboarded one, the currency addition form should be filled in, signed by the participant and submitted to Buna
  • Enabling a currency for participant maybe subject to the approval of FHI (Funds Holding Institution) and/or central bank for that respective currency
  • No, Buna supports multiple currencies however each transaction is processed in a single currency form
  • FX rates and conversion take place outside Buna system (by participants or their correspondent for the relevant currency)
  • Buna is considering to introduce cross-currency conversion feature at a next stage

Compliance

  • Yes, these controls include automated real time sanctions screening and fraud detection for all payments received, as well as a transaction monitoring for the detection of suspicious transactions on a post payment stage
  • Although Buna is adding a second layer of Compliance controls for the comfort of the whole ecosystem , Participant banks are genuinely responsible for doing the required Compliance check on any payment sent through Buna for settlement
  • Yes, a communication module has been added to the Buna portal
  • It can be used for communicating RFI and other queries between Buna and the originating bank and/or between the originating and the receiving bank

Information Security

  • Yes, access to Buna system is restricted to users authorized by participants (defined during onboarding process)
  • Buna’s platform security is ensured with preventive, detective, response and recovery measures covering multiple layers including (Governance, Network, Infrastructure, Application, and Database)
  • Buna performs vulnerability assessment and penetration testing on regular basis and on-demand, any findings are immediately remediated as per Buna vulnerability management policy
     
  • Yes, Buna system fully is compliant with international security standards
  • Buna is ISO 27001 (Information Security Management System) certified
  • Buna is also SWIFT CSP ( Customer Security Programme ) certified
  • In addition, Buna is continuously investing in new technologies and programmes to combat increasing cybercrime activities in digital era
  • Yes, data is encrypted at rest and in transit, as per Buna cryptographic policy and its requirements
  • All data, including transactional data, is hosted in secured data centres to ensure  controlled accessibility, privacy, business continuity and disaster recovery
  • The payment data is accessible only by the participant bank, Buna as processor of payments, and relevant regulator if required
  • The access to data is role-based to ensure security of sensitive information
  • The legal status of the system operator, as an international organization, adds another layer of security to the data, for not being subject to a specific jurisdiction
     

Roadmap

  • Yes, Buna is working on enabling this facility in the near future
  • In such a case, automatic defunding will be stopped
  • However, participant can always withdraw their balance of funds on demand (end of day or intraday) 
  • Keeping balances overnight is subject to each currency’s FHI approval, and may not be available for all currencies
  • Buna will not remunerate the funds kept overnight
     
  • Yes, Buna instant payment service is different
  • Instant payments will be available 24 x 7 x 365 
  • Instant payments will have more use cases such as credit transfers and request for payments
  • Ability to send to an alias (e.g. nickname or mobile number) can be enabled 
  • Instant payments will require keeping some funds overnight to allow 24 x 7 x 365
     
  • Yes, as a regional payment infrastructure, Buna plans to introduce various including:
  • Interoperability with global payment networks 
  • Trade Finance
  • PvP (FX)
  • DvP (Securities Settlement)
  • POS/ATM Processing