Importance of Purpose Codes
When making SWIFT payments to the United Arab Emirates (UAE), it is mandatory to include a purpose code. This requirement is enforced by the UAE Central Bank to ensure that all financial transactions into or out of the country adhere to regulatory standards.
Selecting the Correct Purpose Code
Consultation Required: To select the appropriate purpose code, it is crucial to consult the recipient of the funds. They are in the best position to provide the specific code that accurately reflects the nature of the transaction.
Risk of Incorrect Information: Providing incorrect purpose code details can result in delays or rejections of the transaction by the bank, as they monitor and control fund transfers to ensure compliance with regulations.
Scenario: Payment for Services Rendered
Scenario: Payment for Services Rendered
You are sending money to a freelancer in another country for completing a design project.
Correct Approach:
Contact the freelancer to confirm the purpose code applicable to payments for "professional services" in their country.
Risk of Incorrect Information:
If you mistakenly use a code for "gift" instead of "professional services," the bank may flag the transaction for further investigation, delaying the payment.
Guidance and Support
Contact Beneficiary: Always reach out to the beneficiary to obtain the correct purpose code before initiating your payment.
If you need additional guidance, please contact the Intergiro Customer Support team by clicking the button 'Talk to a Person 👤' on the chat widget.