UAE Purpose of Payment Codes

Overview

The Central Bank of The United Arab Emirates (CBUAE) has introduced a new Purpose of Payment Code for all SWIFT payments received into and sent from bank accounts held within the UAE. This will become fully mandated on 1st September 2018.

You can find out more about this mandate on the CBUAE website.

What does this mean for me?

You will now need to supply a Purpose of Payment Code when making payments in any currency to beneficiary bank accounts held within the UAE. Any payment created without a Payment Purpose Code will not be validated and will return the following error: “Invalid payment purpose code”

Depending on whether or not you use our API’s or Currencycloud Direct, there are different instructions you will need to follow. 

API

We will be adding the list of supported Purpose of Payment Codes to the ‘Get Payment Purpose Codes’ Reference Data API (/v2/reference/payment_purpose_codes). This list of codes is supplied by the CBUAEPlease note that an additional Destination Country parameter will also be added to the current API.

What do you need to do?

  • Ensure that your API integration is set to use the ‘Get Payment Purpose Codes’ Reference Data API to retrieve the list of available codes. Make sure to note the new ‘Bank Account Country’ parameter being added
  • Update your app or website to display and process the new codes correctly
  • Amend or delete any existing payments to beneficiary bank accounts in the UAE that do not have Payment Purpose Codes saved against them
  • Update any payments created before 1st September 2018, but due to be executed after this date, with a Payment Purpose Code
  • When creating new payments, make sure they contain a valid Payment Purpose Code

Currenycloud Direct

We are running platform updates to build in the support for Purpose of Payment Codes in Currencycloud Direct. Once available, you will need to amend or delete any payments due to execute after 1st September 2018. From 1st September 2018, the Payment Purpose Code field will be shown as a mandatory field for payments in any currency to beneficiary bank accounts held in the UAE.

What do you need to do?

  • Ensure any new payments created contain a valid Payment Purpose Code
  • Update any payments created before 1st September 2018, but due to be executed after this date, with a Payment Purpose Code

 

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