Serial vs Cover Payments
After this chapter the learner can trace a cross border payment through the serial and cover methods, explain how each moves money and information, and choose the right method for a corridor.
Serial versus cover payments: two ways to move money across borders, and why the choice changes the information, the cost and the risk.
What You Can Do After This Chapter
Learning objective. Learner distinguishes serial payments from cover payments, explains MT103, MT202, and MT202COV usage, and identifies when a cover payment creates transparency and compliance risks. Learner demonstrates this skill using realistic banking examples, explaining each step clearly and using correct terminology throughout.
Practical assessment. Learner receives two cross-border payment scenarios, one serial and one cover, for a 50,000 euro transfer, and draws the message flow for each, naming every MT message sent. Learner then writes a short risk note explaining why the cover method can hide the originator, and states which fields in MT202COV restore transparency. Learner submits the work with all calculations, sources, and assumptions stated clearly, and checks the result against the chapter checklist before final submission.
Expected deliverables.
- Serial payment message flow diagram
- Cover payment message flow diagram
- MT202COV transparency explainer
- Risk note on cover payment opacity
Completion criterion. Learner draws both flows with the correct messages, names the MT202COV fields that restore transparency, and explains the cover payment risk accurately. Completion is judged on accuracy, completeness, and clear reasoning throughout the submitted work.