New remittance rule in Oman: Bank IBANs mandatory for inward transfers

Dubai: Starting today - July 1- sending money into Oman will require the IBAN (International Bank Account Number) details of the recipient in the Sultanate.

Banks in the UAE have been informing their clients about the new requirement for all such transfer of funds to Oman.

Oman's Central Bank had earlier set July 1 as the deadline for banks in the country to cease receiving any cross-border transfers that do not carry the IBAN details.

Since end March 2024, Oman has required IBAN for fund transfers from Oman to any recipient outside of the country.

"From July 1, sending money in the Sultanate will require the IBAN details of the recipient," said Arun Leslie, Chief Market Analyst at Century Financial. "Previously, transfers were typically processed using domestic account numbers and SWIFT codes.

"This system, while functional, was prone to errors, delays, and rejections."

According to the Central Bank of Oman, "The adoption of IBAN does not require changing the existing account numbers. Instead, the IBAN will include the existing account numbers in a standardized format, which could be validated by banks using a standard methodology."

What an IBAN does is provide a 'unique' account number internationally for each customer account, which 'allows the sending bank to validate the accuracy of beneficiary’s account number'.

"This is a case of more Gulf states unifying their money transfer norms - especially when it comes to transfers from overseas - using the IBAN," said a financial consultant. "The UAE and Saudi has had mandatory IBAN requirements for years now.

"In terms of creating a transparent process to send and receive money, the IBAN is a must."