To further orient banking customers on the International Bank Account Number (IBAN) system, Gulf News has put together some relevant answers to frequently asked questions:
What types of transactions require an IBAN?
Any financial transaction that will move funds from one institution to another, either directly or through national and international payment systems, shall require IBAN. In any financial transaction, there is an ordering party and beneficiary party. Depending on the origin and destination, the ordering party account or beneficiary account will need to be specified as IBAN.
Is IBAN required for workers who use salary pre-paid cards?
No, in the Wages Protection System or UAEWPS, IBAN is only required if the employee holds a current or savings account in a bank. Payroll Cards (pre-paid or others) issued by a bank, exchange house or non-bank financial companies (NBFCs) will not have an IBAN equivalent.
Where else is IBAN required, as far as salary transfers are concerned?
IBAN is required if salaries are processed through UAEWPS, whereby the employer is registered with the Ministry of Labour, and UAEFTS, whereby the employer is outside the purview of Ministry of Labour and the accounts of the employer and employee are with different banks.
IBAN is not required if the salary is processed through internal transfer, which means the employer is outside the purview of Ministry of Labour and the accounts of the employer and employee are with the same bank.
I have two accounts in one bank, do I need to quote IBAN for inter-account transfers or payments within the same bank?
Where both the debit and credit accounts are with one UAE bank, you can continue to provide the standard bank account number.
Is IBAN required to make a payment for credit card by transfer from other bank?
IBAN is not required for credit card payments.
Is IBAN required for over-the-counter transactions (cash withdrawal; cash or cheque deposit, etc.)?
No, IBAN is not required for over-the-counter transactions, including cheque and cash deposits.
Currently, I use electronic delivery channels (that is, personal internet banking, business internet banking, HSBCnet, HSBC Connect, SWIFTNet). Do I need the IBAN when initiating electronic payments to UAE banks?
Yes, please ensure that you provide a valid IBAN at the time of initiating the payment instruction to ensure that your beneficiary gets the credit on time.
I usually transfer funds through an exchange house. Will I need an IBAN?
Only if it's a bank-to-bank transfer. Cash-to-cash transactions do not require IBAN since it does not go through bank accounts.
If I wire money to a non-IBAN country, will I pay extra fees or charges?
No, there are no added charges to sending remittances to non-IBAN countries, the charges remain the same.
If I wish to send money through an exchange house to someone who doesn't have a bank account abroad, will I need my IBAN?
In the case of online transfers, the customer who will be sending the remittance will need to update user details with the accompanying IBAN number to enable the transfer of the money. Beneficiaries or recipients of the remittance will be able to receive the money being sent even if they don't have a bank account.
Will IBAN replace my bank account number?
No. Your existing account number will continue to be valid. IBAN is not a new account number. It simply represents the existing account number in an electronically recognisable ISO standard format.
— Source: UAE Central Bank, Emirates NBD, National Bank of Abu Dhabi, Standard Chartered Bank, Mashreq, HSBC, Lloyds TSB, Noor Islamic Bank, Al Ansari Exchange, Western Union
