According to the recently communicated Central Bank guidelines on Transfers (UAEFTS 3.0 – IBAN Usage in Domestic and International Transactions), all payments to accounts maintained in the UAE should have the following:
1. A valid reason for the payment (identified as a 'Purpose of Payment' in our system)
2. An International Bank Account Number (IBAN)
3. Any payment instruction submitted without an IBAN (with the exception of credit card payments) and a valid 'Purpose of Payment' is subject to rejection, delays and additional charges.
Please make sure you amend any existing standing instructions for UAE payments by providing an IBAN equivalent for the beneficiary account and a valid 'Purpose of Payment'.
Furthermore, please be sure you communicate the IBAN for your account to all parties from whom you expect a transfer into your account.
List of options for 'Purpose of Payment'
The list of valid 'Purpose of Payment' with descriptions is given below:
CRP Credit card payments
CHC Contributions to designated accounts held by charitable institutions
INV Miscellaneous payment with invoice details
ROB Miscellaneous payment with beneficiary customer reference
ROC Miscellaneous payment with ordering customer reference
REM Remittance (for any payments that cannot be classified in any of the codes described above)
In compliance with the Central Bank of the UAE regulations, we are pleased to inform you that HSBC Bank Middle East Limited has successfully applied the IBAN for all your HSBC accounts, which will be used for all inward and outward remittances from and to the UAE.
The IBAN is an international standard for identifying bank accounts (excluding credit cards). The main purpose of the IBAN is to facilitate the automatic processing of money transfers, in order to improve the speed and accuracy of your payment transactions.
The Central Bank regulation is effective from 19 November 2011, with a revised six-month grace period of up to 14 April 2012, whereby all banks in the UAE are required to accept and process payment instructions with IBANs. Consequently, you will be required to provide an IBAN for all instructions for value date on or after 14 April 2012, when making payments from or receiving payments into your account. Please ensure that the IBAN for your account is communicated to all parties from whom you are expecting a remittance to your account.