When it comes to Key Tested Telex (KTT) transactions, the foundation of a smooth process lies in the client documentation. At the heart of this is the Client Information Sheet (CIS). Let’s walk through what’s required, why it matters, and how it fits into the larger KTT workflow.
Step 1: Client Provides CIS
What’s submitted:
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Client Information Sheet (CIS)
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Bank account details
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Passport/ID copy
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Company registration documents
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Black screen evidence (if applicable)
Purpose: This pack gives both banks the KYC/KYB (Know Your Client/Know Your Business) data they need to confirm ownership, authority, and compliance before proceeding with any transfer instructions.
Pro tip: Ensure all names, account titles, and registration numbers match exactly across every document. Even minor inconsistencies can trigger compliance flags and delay your transaction.
Step 2: Verification
The receiving bank now validates the client, account status, and documentation. Once complete, the CIS and Deed/Document of Agreement (DOA) are forwarded to the sender’s bank as part of the standard workflow.
Here, critical checks take place:
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Sanctions lists
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Source of funds and source of wealth validation
Timeline: Typically 2–7 business days, depending on jurisdiction, document quality, and bank procedures.
Step 3: KTT Message Sent
With client verification cleared, the sending bank prepares the telex message with its key-tested code.
Message contents usually include:
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Ordering and beneficiary details
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Amount, currency, and value date
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Reference numbers
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Basis of charges (OUR/SHA/BEN)
Coordination tip: Confirm the exact telex/KTT format your banks still support, and align dispatch with cut-off times to avoid delays.
Step 4: Verification by Receiver Bank
Both banks authenticate the message by checking the key-tested code. If there are mismatches in amounts, names, or references, a discrepancy notice is issued and an amended message may be required.
Step 5: Funds Move
Once authenticated:
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The sending bank debits the client account.
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The receiving bank credits the beneficiary account.
Settlement timing depends on value date, time zones, and bank cut-offs:
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Same-day settlement
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T+1 or T+2 (next or second business day)
After settlement, both banks reconcile statements and archive authenticated message logs.
Documents and Roles at a Glance
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Client: CIS, IDs, corporate docs, DOA, black screen (if required)
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Banks: KYC/KYB checks, sanctions screening, message preparation, key testing, call-backs, settlement
Common Pitfalls and How to Avoid Them
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Incomplete CIS pack → Submit a clean, consistent set of documents up front.
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Bank capability gaps → Confirm both banks support the required KTT/telex format and key testing.
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Timing issues → Align dispatch with both banks’ time zones and cut-offs.
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Unclear fees → Define who pays charges (OUR/SHA/BEN) to prevent short credits.
Indicative Timelines
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CIS submission & verification: 2–7 business days
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KTT drafting & dispatch: 1–3 business days
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Code verification & settlement: Same day to T+2
Compliance Notes
All parties must pass AML/CFT and sanctions screening. Banks may also request proof of source of funds and wealth. Some institutions are now routing authenticated instructions via modern secure channels—if KTT/telex isn’t supported, your bank will propose an equivalent authenticated method.
