With effect from 1 September 2018, a valid Purpose of Payment code is required for all cross-border payments and Inter-account Transfers from accounts held with HSBC UAE.
To enable you to make changes to your systems, there will be a grace period until 1st December 2018 after which failure to include a Purpose of Payment code in the relevant field will result in payments being rejected. We still recommend you to start using the POP codes in your payment instructions with immediate effect.
This update is in line with the Central Bank of UAE's directive and further to our recent communication regarding Purpose of Payment requirements for international payments and Inter-account Transfers. This requirement applies for payments submitted to the bank.
As of 1 December 2018, a valid Purpose of Payment code is required in the appropriate field or your payment will be rejected.
Please note that the Purpose of Payment code for Goods Bought and Sold ("GDS") will be removed from the list of accepted codes as of 1 December 2018. We recommend that you update your templates as needed.
To avoid payment rejections, we recommend that you include a valid Purpose of Payment code in the appropriate field of your payments starting on 1 September 2018. Further details of the changes can be found below:
For more information on Purpose of Payment requirements for payments from your HSBC UAE accounts, please contact your HSBC representative.