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    Uaefts Faq

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    Prayag Panchal
    The document describes the UAE Funds Transfer System (FTS), which requires all banks in the UAE to use the central bank system for dirham transfers. It will replace SWIFT messages with file-based transfers, allowing more efficient AED payment processing. The FAQ addresses questions about FTS participation, limits, cut-off times, fees and how it will provide faster processing and reduced lifting charges compared to the previous system. Transaction type and payment details codes are also explained, with examples of available codes for different payment purposes.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Uaefts Faq

    Uploaded by

    Prayag Panchal
    454 views3 pages
    The document describes the UAE Funds Transfer System (FTS), which requires all banks in the UAE to use the central bank system for dirham transfers. It will replace SWIFT messages with file-based transfers, allowing more efficient AED payment processing. The FAQ addresses questions about FTS participation, limits, cut-off times, fees and how it will provide faster processing and reduced lifting charges compared to the previous system. Transaction type and payment details codes are also explained, with examples of available codes for different payment purposes.

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    SWIFT

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    uaefts_faq

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    The document describes the UAE Funds Transfer System (FTS), which requires all banks in the UAE to use the central bank system for dirham transfers. It will replace SWIFT messages with file-based transfers, allowing more efficient AED payment processing. The FAQ addresses questions about FTS participation, limits, cut-off times, fees and how it will provide faster processing and reduced lifting charges compared to the previous system. Transaction type and payment details codes are also explained, with examples of available codes for different payment purposes.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    454 views3 pages

    Uaefts Faq

    Uploaded by

    Prayag Panchal
    The document describes the UAE Funds Transfer System (FTS), which requires all banks in the UAE to use the central bank system for dirham transfers. It will replace SWIFT messages with file-based transfers, allowing more efficient AED payment processing. The FAQ addresses questions about FTS participation, limits, cut-off times, fees and how it will provide faster processing and reduced lifting charges compared to the previous system. Transaction type and payment details codes are also explained, with examples of available codes for different payment purposes.

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    FAQ on UAE Funds Transfer System (FTS)

    Queson 1: What is FTS?


    Answer: FTS stands for Funds Transfer System. FTS is a funds transfer mechanism in the UAE wherein transfer of money
    takes place from one Bank to another through the UAEs Central Bank system. In compliance with regulatory requirements, all
    Banks in the UAE have been mandated to use the UAE FTS for all UAE Dirham (AED) transfers. This system will require Banks
    in the UAE to switch from SWIFT nancial messages to a le based selement system, allowing for more ecient
    processing of AED payments.

    Queson 2: Are all Bank branches in the country part of the Funds Transfer network?
    Answer: Yes. In compliance with regulatory requirements, all Banks in UAE have been mandated to use the UAE FTS for all
    AED transfers.

    Queson 3: Is it possible for Banks in UAE to send payment/receive AED payments via SWIFT message from UAE Banks?
    Answer: No. With the implementaon of FTS, usage of SWIFT messages such as MT103, MT202, etc will be disconnued for
    all AED payments between UAE Banks. However these message types will connue for other currency payments.

    Queson 4: Is there any limit on the amount that could be transferred using FTS?
    Answer: No. There is no limit on the amount of funds that could be transferred using FTS.

    Queson 5: How can a Client send signed instrucons manually for AED currency payments with the mandatory Transacon
    Type code?
    Answer: The new Transfer request form with all Transacon Type codes and Payment Details codes will be available at all of
    Cibank, N.A. UAE branches.

    Queson 6: Am I required to incorporate any changes to my transfer instrucons sent on my leer head?
    Answer: Yes. Clients have to provide the Transacon Type code and Payment Details Code for each payment on company
    leer head.

    Queson 7: Are there changes in outgoing transfer processing fees for FTS Transacons?
    Answer: Yes, there is a change in charges, AED 25 for incoming and outgoing transfers.

    Queson 8: Are there changes in correspondent Bank fees for FTS Transacons from UAE Banks?
    Answer: Once FTS goes live, Central Bank has mandated that the correspondent Bank fees from any UAE Bank for payments
    with charge code OUR will be AED 25 only.

    Queson 9: What is the cut-o me for FTS AED payments?


    Answer: There is no change in AED currency cut-o mes for Cibank UAE; that is for electronic payment 11:00 AM and for
    manually iniated payments the cuto will be 10:00AM.

    Queson 10: Who at Ci should be contacted in case of non-credit or delay in credit to the beneciary account?

    Answer: Client may contact the below listed Client Service Representaves in Cibank UAE for queries:

    Contact your Relaonship Manager


    Contact our Call Center at +971 4 311 4000
    Visit your nearest Cibank branch
    Email us at uaeservice@ci.com

    Queson 11: Since there will be no SWIFT copy that can forwarded to the beneciary for follow up with their Bank, what
    proof can Ci provide on payment conrmaon?
    Answer: Ci will be able to provide the acknowledgement le name received from the regulators.

    Queson 12: Can remiances in AED currency be sent abroad using FTS?
    Answer: Yes. The Remier has to provide the AED Correspondent Bank details to remit the funds.

    Question13:WouldtheremitterBankreceiveanacknowledgementoncethefundsaretransferredtotheaccountofthe
    beneficiaryBank?
    Answer:No,onceafileissenttotheregulator,theremittingbankwillreceiveanacknowledgmentoranegative
    acknowledgement.ThismeanthatthefilehasbeenacceptedandwillbepassedontotheBeneficiaryBankonlyifthereare
    sufficientfundsinourCentralBankAccount.

    Question14:WhatarethebenefitswithintroductionofFTS?
    FasterprocessingthroughRTGS(RealtimeGrossSettlement)
    ReductioninliftingCharges(25.00AEDforUAEDirhamPaymentsforpaymentwithchargecodeOUR)
    EnhancedvisibilitythroughtheFTSQueryModuleprovidedbyCentralBankwithPaymentStatus(ACK/NAK)forBanks.
    SamedaycredittobeprovidedbyallBanks.
    CreditsbasedonIBAN

    Question15:WhatareTransactionTypecodesandDetailsofPaymentsCodesandhowmanyareavailable?
    Answer:ThetablebelowhasallthecodesforbothTransactionTypeandDetailofPayment.

    CODE Description UsageRestriction

    SAL Salary OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingsalary CORPORATES.
    paymentstoemployees.

    ALW Allowances OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingpaymentsto CORPORATES.
    employeesforallowances.

    BON Bonus OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingbonus CORPORATES.
    paymentstoemployees.

    COM Commission OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingcommission CORPORATES.
    paymentstoemployees.

    COP Compensation OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingpaymentsto CORPORATES.
    employeesforcompensation.

    EOS EndofService OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingpaymentsto CORPORATES.
    employeesfortheirendofservicebenefits.

    LAS LeaveSalary OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingleavesalary CORPORATES.
    paymentstoemployees.

    OVT Overtime OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingpaymentsto
    employeesforovertime CORPORATES.

    TKT Tickets OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingpaymentsto CORPORATES.
    employeesfortickets

    ACM AgencyCommission OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingpaymentsto CORPORATES.
    othercompaniesforagencycommissions

    CCP CorporateCardPayment OnlytobeusedbyNONRETAILaccount


    holders(nonIndividuals),suchasSME,
    Thecodeistobeusedformakingpaymentsto CORPORATES.
    cardsheldinthenameofthecompany.

    CRP CreditCardPayments OnlytobeusedRETAILaccountholders


    (Individuals)
    Thecodeistobeusedformakingcreditcard
    payments

    CHC CharitableContributions CanbeusedbyalltypesofCustomers.

    Thecodeistobeusedformakingcontributionsto
    designatedaccountsheldbycharitable
    institutions

    REM Remittance CanbeusedbyalltypesofCustomers.

    Thecodeistobeusedformakinganypayments
    toindividualsornonindividualsaccountsforany
    paymentsthatcannotbeclassifiedinanyofthe
    codesdescribedabove.

    CBP CrossBorderPayments CanbeusedbyalltypesofCustomers.

    INV MiscellaneousPaymentwithInvoiceDetails CanbeusedbyalltypesofCustomers.

    ROB MiscellaneousPaymentwithBeneficiary CanbeusedbyalltypesofCustomers.


    CustomerReference

    ROC MiscellaneousPaymentwithOrderingCustomer CanbeusedbyalltypesofCustomers.


    Reference

    Question16:IstherealinkbetweentheTransactionTypecodesandDetailsofPaymentsCodes?
    Answer:Yes.TransactionTypecodeisintroducedbytheregulatortocapturetheunderlyingnatureofthetransactionfor
    regulatorypurposes.ThevaluecapturedinthisfieldhasanimpactonthePaymentDetailsCode.

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