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IMPORTANT UPDATE

"As per instructions received from the UAE Central Bank, it is now a regulatory requirement that all inward payments received for local UAE based beneficiaries without an IBAN must be rejected forthwith and returned to the remitting bank (after deducting charges) irrespective of amount (size of transfer) or size of the customer effective 15th June, 2012.

We are therefore urging all our customers to keep their remitters informed of this development, as it would impact all inward transfers (both domestic and International) received without an IBAN, and Mashreq will have no choice but to return the funds to the remitting bank thereby delaying receipt of credits by our valued customers."


ABOUT IBAN

In compliance with Central Bank of UAE regulations, we are pleased to inform you that Mashreq has successfully applied the International Bank Account Number (IBAN) for all your accounts, which will be used for all inward and outward remittances from and to the UAE and salary payments through WPS.

International Bank Account Number (IBAN) is an international standard for identifying bank accounts (excluding credit cards). The main purpose of IBAN is to facilitate the automatic processing of money transfers, to improve the speed and accuracy of your payment transactions. 

The Central Bank regulation is effective from 19th November 2011, whereby all banks in UAE are required to accept and process payment instructions with IBAN. Consequently, you will be required to provide an IBAN for all instructions for value date on or after 19th November 2011 when making payment from or receiving payments to your account.  Please ensure that the IBAN for your account is communicated to all parties from whom you are expecting a remittance to your account. 

In case the IBAN is not used, the processing of both Inward and Outward payment in your account  IS LIKELY TO BE REJECTED OR MAY be delayed with additional processing charges as may be prescribed by Central Bank from time to time.

If you have standing orders for effecting payments from your account to beneficiary accounts held in banks within the UAE other than Mashreq, then you will need to amend the same, by providing the IBAN equivalent for the beneficiary account.

Please note, all Mashreq payment / instructions submission channels will be enhanced to accept IBAN from 19th November 2011.

We thank you for banking with Mashreq.

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» FAQ on the International Bank Account Number (IBAN)

What is IBAN?

IBAN is the acronym for ISO 13616 standard compliant International Bank Account Number. IBAN is a unique customer account number which can be used confidently in making or receiving payments (excluding checks and credit cards) within the country as well as abroad. The confidence comes from two sources: the first is the internationally accepted standard for numbering bank customer accounts and the second is the ISO standard methodology for verifying the accuracy of the IBAN.

Why did the United Arab Emirates decide to introduce IBAN?

Introduction of the IBAN is a strategic initiative that will further align the UAE banking system with the evolving standards applied in other global banking systems. The adoption of IBAN is a step in the direction towards increasing the efficiency of electronic payments in the UAE, while further strengthening the country’s status as a global financial centre.

Who can create and issue IBAN?

Banks in UAE having customer accounts which are used for electronic payments are authorized to generate IBAN. No other party is permitted to generate IBAN for bank customers.

Who requires an IBAN?

Bank customers, who receive or make electronic payments in UAE or abroad, will require IBAN. If you have more than one account at your bank, you will require an IBAN for each of your accounts.

How can I get my IBAN?

Each of your account numbers will be converted into IBAN format from November 19, 2011, and you will be informed of the details by your bank. Your bank will also print your IBAN on your bank statement(s) starting November 19, 2011.

How would bank customers benefit from IBAN?

The main benefit of IBAN to the customer is the assurance of their transactions made to correct account to be processed efficiently and with no delay. Since banks check the accuracy of the IBAN at the point of initiating a payment, they can only make the payments which carry the correct IBAN.

Briefly explain the IBAN for UAE?

According to the ISO compliant IBAN Standard issued by the Central Bank of UAE, all IBANs have a fixed length of 23 characters.


IBAN has 3 components i.e. the Country Code, the Check Digit & the Basic Bank Account Number

The country code (first and the second characters of an IBAN) helps to identify and country where the account is resident. It contains the ISO two letter country code ‘AE’ (the ISO country code for the UAE)

The Check Digit (third and the fourth characters of an IBAN) helps to verify the IBAN internationally is always generated by a bank in UAE and helps in verifying if the account number is correct or otherwise

The BBAN helps to identify an account number of a customer, as well as his bank, domestically. It comprises the Bank identifier (which identi?es the account holding bank) and the customer account number. In the case of UAE, the Bank Identifier is the 3 digits following the Check Digits.

The remaining part of the BBAN is the existing customer account number. The length of the customer account number in the IBAN is fixed as 16 characters. It can ONLY contain numbers (0 to 9).

What is the difference between an IBAN and a normal account number?

An IBAN can always be distinguished from a normal customer account number by the following:

Two letters at the beginning of the IBAN, which refer to the country code where the account resides;

Two numbers (in the third and fourth position of the IBAN), which represent the check digit;

Three numbers (after the check digits) to identify the respective bank where the beneficiary maintains his/her account; and

The length of the IBAN is 23 characters.

Is there a standard way to write an IBAN?

When you write or print an IBAN on a document, it has to be split into 6 groups of four characters each, e.g.: AE07 0331 2345 6789 0123 456 to support easy recognition. The last group of the IBAN for a customer in UAE contains three characters.

There should not be any spaces when entering the IBAN in an electronic payment message. The IBAN should be presented in an electronic payment message as a continuous string of characters i.e. AE070331234567890123456

Does the existing account numbers become invalid with the introduction of IBAN?

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 recognizable ISO standard format. The adoption of IBAN in UAE does not require changing or replacing the existing account numbers.

For which transaction(s) can IBAN be used?

IBAN can be used for the domestic and cross-order payments. Additionally, the IBAN will be mandated for use in the Wages Protection System.

Is the IBAN to be used only for international payments?

No, Customers have to use IBAN in making and receiving international as well as domestic electronic payments.

What happens if we do not mention Beneficiary account as IBAN from November 19, 2011 onwards?

Banks will not reject such transactions from November 19, 2011 to April 12, 2012. However, it is likely that your transfer may get processed with delays and additional processing charges as may be prescribed from time to time.

What happens if we don’t mention Beneficiary account as IBAN after April 12, 2012?

Banks will not process and will reject such transfers if they do not contain a valid IBAN account number after April 12, 2012. Furthermore, there may be additional rejection charges applied to the transfer. This is only applicable for payments made to bene?ciaries in the UAE.

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» FAQ of WPS & Non WPS salaries

Is the IBAN required in Wages Protection System (WPS) processing?

Yes, Employer should provide the IBAN in SIF (salary information file) where EDR routing number is bank.

Is the IBAN required in Wages protection system where the A/c number is Pay roll cards & their EDR routing numbers are banks & PSP (Pay roll service providers)

Yes if IBAN is available. If IBAN is not available, then valid employee payroll card numbers needs to be used. i.e. 23 digits card numbers, first 7 digits padded with zero & last 16 digits, first digit should be starting with 4,5 & 6 or first 10 digits padded with zero & last 13 digits, first digit should be starting with 3 (Eg: 00000004123486789012345, 00000005123456789012345, 00000006123456789012345 & 00000000003125489012123 )

Is the IBAN required in Wages protection system where the EDR routing number is exchange house?

No, can use IBAN or exchange A/c no. (Banks & Central Bank are not validating the IBAN under EDR where routing numbers is for exchange houses)

From when IBAN can be provided in the Wages Protection System?

From 19th November 2011 onwards.

What happens if we do not provide A/c number as IBAN or Pay roll card numbers from 19th November 2011 onwards where EDR routing numbers is Bank & PSP?

Bank will not reject such transactions from November 19th, 2011 to 12th April 2012. However, it is likely that your transfer may get processed with delays and additional processing charges as may be prescribed from time to time.

What happens if we do not provide A/c number as IBAN or Pay roll card numbers from 14th April 2012 onwards where EDR routing no is Bank & PSP?

Bank will reject whole SIF file of the Employers & will not process the salary file, if any one of EDR employee IBAN or pay roll card number is invalid in SIF.

Is the IBAN required in Wages protection system where SCR routing number is same as EDR routing number. (Employer & employee A/c is in the same bank)

Yes, if IBAN is not provided & only bank A/c numbers is provided, still bank will process their salaries. If any one of the A/c number is invalid in EDR, then bank will reject the entire employer SIF file & the salary file will not be processed.

Is the employer IBAN required for Non-WPS & WPS salary processing?

No.

Is the employee IBAN required for Non-WPS salaries?

Yes,

From when, employee IBAN can be provided for Non-WPS salaries?

From 19th November 2011 onwards.

What happens if we do not provide A/c no as IBAN for Non-WPS employee salaries from 19th November 2011 onwards?

Bank will not reject such transactions from November 19th, 2011 to 12th April 2012. However, it is likely that your transfer may get processed with delays and additional processing charges as may be prescribed from time to time.

What happens if we do not provide A/c no as IBAN for Non-WPS employee salaries from 14th April 2012?

Bank will process valid IBAN salaries from the salary excel file & invalid IBAN salaries will be credit back to employer A/c's.

Is the IBAN required for Non-WPS salaries where employer & employee A/c in same bank?

Yes, if IBAN is not provided & bank A/c No is provided. still bank will process their salaries. If the A/c no is invalid, those salaries will be credit back to employer A/c's.

Is the IBAN required for Non-WPS salaries where the employees A/c's are Pay roll cards?

Yes if IBAN is available. If IBAN is not available, then valid employee payroll card numbers needs to be used. i.e. 16 digits card numbers, first digit should be starting with 4,5 & 6 or 13 digits card numbers, first digit should be starting with 3 (Eg: 4123486789012345, 5123456789012345, 6123456789012345 & 3125489012123 )

What is the bank excel file format for Non-WPS salaries?

Sl No Beneficiary Account Number Beneficiary Name Amount Bank Code Employee No Special Instructions for Beneficiary Bank
1 AE280330000001111111111 Suhail Farnath 3250.00 033 1 Sal Nov 2011
2 AE140330000001111111111 Kashif malik 4000.00 033 2 Sal Oct 2012
3 AE450330000001111111111 Kamran masood 5500.00 033 3 Sal Nov 2013
The field specification is as follows: (Note: No special characters are allowed)
SNO. Field Label Max Size Type Use Remarks
1 Sl No 6 Numeric Mandatory This number must be unique in this file and need not be in any specific occurrence order.
2 Beneficiary account number 23 Alpha Numeric Mandatory The Beneficiary account number (IBAN) must be specified in this field.
3 Beneficiary Name 35 Alpha Numeric Mandatory Special characters including comma not allowed
4 Amount 9 Numeric Mandatory Valid transaction amount with 2 decimals. Negative & zero value are not permitted. Maximum length is inclusive of decimal values and decimal DOT. Eg: 123456.78
5 Bank code 3 Numeric Mandatory Valid bank code, 2nd, 3rd & 4th digit of the bank 9 digit routing number
6 Employee number 8 Numeric Mandatory This number must be unique in this file and need not be in any specific occurrence order.
7 Special Instructions for Beneficiary Bank 175 Alpha Numeric Optional  

What is the bank excel file naming convention for Non-WPS Salaries?

Details Sample value
Company A/c no (last 12 digit of IBAN) 010494300206
Date (DDMMYYYY) 01052012
File Creation Time (HHMM) 2315
Sample excel file name will be as below
010494300206010520122315
When onwards employer should provide Non-WPS salaries in bank excel file format?

From 14th April 2011 onwards.

What happens if employer does not provide Non-WPS salaries in bank excel file format

Bank will not process those salaries & will return back to employer.

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