1. 1 BANK OF ALBANIA AIPS PROJECT

2. 2 What is AIPS? AIPS Project Implementation Plan AIPS Activities & Responsibilities AIPS Operational Security & Resilience AIPS Project Communications Questions & Answers Introduction

3. 3 What is AIPS? Settlement of Systemically Important Payments. RTGS Core Principles. AIPS System Components.

4. 4 Settlement of Systemically Important Payments  Payments between settlement participants (bank-to-bank payments) including payments to and from the BOA;  Payments on government securities transactions, using the DVP mechanism;  Net transfers of funds requiring designated time settlement; and  Large-value customer payments.

5. 5 RTGS Core Principles Bank for International Settlements (BIS). European Central Bank (ECB). International Standards Organisation (ISO). SWIFT Standards

6. 6 AIPS System Components. SWIFT FIN Y-Copy Service AIPS Webstation AIPS Central System

7. 7 AIPS Main Components RTGS Settlement Settlement Payments &Transfers Access and Routing Workstation BOA System CBT Webstation Participant System Delivery System S.W.I.F.T. I/F Y-Copy

8. 8 AIPS Architecture

9. 9 SWIFT FIN Y-Copy SWIFT Alliance to initiate/receive Payments. Security provided by SWIFT Network. Double Authentication by SWIFT. SWIFT Close-User-Group. SWIFT stores all payments until AIPS confirms settlement.

10. 10 Flow Of Messages The sending bank remits an AIPS SWIFT payment (MT103/202) to receiving bank. Minimal settlement information is forwarded to AIPS (MT096) SWIFT FIN Y-Copy awaits settlement confirmation from AIPS (MT097) The original payment is released to the receiving bank.

11. 11 SWIFT and AIPS

12. 12 AIPS Webstation AIPS uses the Participant Webstation to support RTGS non-value functions including: on-line access to account balance and activity information; on-line access to queued payment information; on-line information for the total sum of queued inward payments (to be decided); on-line access to perform reprioritisation of queued payments; and monitoring of RTGS Central System operational status.

13. 13 AIPS Central System The Central System performs three main roles: RTGS Accounting on behalf of Participants and associated liquidity management facilities. BOA inward and outward AIPS Payments. BOA account transfers across Participant Accounts.

14. 14 AIPS Project Implementation Plan

15. 15 AIPS Activities & Responsibilities

16. 16 AIPS Operational Security & Resilience l Communication Environment – encrypted VPN l Access Security l Authentication l Smart Card Logon l Fallback Site and Installations l Remote Logging l VPN Fallback

17. 17 AIPS Project Communications AIPS Participant Coordinators Meetings AIPS Project Documentation and communications AIPS Support Email Address

18. 18 Questions & Answers Over To You