FAQ on UAE Funds Transfer System (FTS)

FAQ on UAE Funds Transfer System (FTS)
Ques�on 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 UAE’s 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 financial messages to a file based se�lement system, allowing for more efficient
processing of AED payments.
Ques�on 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.
Ques�on 3: Is it possible for Banks in UAE to send payment/receive AED payments via SWIFT message from UAE Banks?
Answer: No. With the implementa�on of FTS, usage of SWIFT messages such as MT103, MT202, etc will be discon�nued for
all AED payments between UAE Banks. However these message types will con�nue for other currency payments.
Ques�on 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.
Ques�on 5: How can a Client send signed instruc�ons manually for AED currency payments with the mandatory Transac�on
Type code?
Answer: The new Transfer request form with all Transac�on Type codes and Payment Details codes will be available at all of
Ci�bank, N.A. UAE branches.
Ques�on 6: Am I required to incorporate any changes to my transfer instruc�ons sent on my le�er head?
Answer: Yes. Clients have to provide the Transac�on Type code and Payment Details Code for each payment on company
le�er head.
Ques�on 7: Are there changes in outgoing transfer processing fees for FTS Transac�ons?
Answer: Yes, there is a change in charges, AED 25 for incoming and outgoing transfers.
Ques�on 8: Are there changes in correspondent Bank fees for FTS Transac�ons 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.
Ques�on 9: What is the cut-off �me for FTS AED payments?
Answer: There is no change in AED currency cut-off �mes for Ci�bank UAE; that is for electronic payment 11:00 AM and for
manually ini�ated payments the cutoff will be 10:00AM.
Ques�on 10: Who at Ci� should be contacted in case of non-credit or delay in credit to the beneficiary account?
Answer: Client may contact the below listed Client Service Representa�ves in Ci�bank UAE for queries:
Contact your Rela�onship Manager
Contact our Call Center at +971 4 311 4000
Visit your nearest Ci�bank branch
Email us at uaeservice@ci�.com
Ques�on 11: Since there will be no SWIFT copy that can forwarded to the beneficiary for follow up with their Bank, what
proof can Ci� provide on payment confirma�on?
Answer: Ci� will be able to provide the ‘acknowledgement file name’ received from the regulators.
Ques�on 12: Can remi�ances in AED currency be sent abroad using FTS?
Answer: Yes. The Remi�er has to provide the AED Correspondent Bank details to remit the funds.
Question 13: Would the remitter Bank receive an acknowledgement once the funds are transferred to the account of the beneficiary Bank? Answer: No, once a file is sent to the regulator, the remitting bank will receive an acknowledgment or a negative acknowledgement. This mean that the file has been accepted and will be passed on to the Beneficiary Bank only if there are sufficient funds in our Central Bank Account. Question 14: What are the benefits with introduction of FTS? • Faster processing through RTGS (Real‐time Gross Settlement) • Reduction in lifting Charges (25.00 AED for UAE Dirham Payments for payment with charge code ‘OUR’) • Enhanced visibility through the FTS Query Module provided by Central Bank with Payment Status (ACK/NAK) for Banks. • Same day credit to be provided by all Banks. • Credits based on IBAN Question 15: What are Transaction Type codes and Details of Payments Codes and how many are available? Answer: The table below has all the codes for both Transaction Type and Detail of Payment. CODE Description Usage Restriction
SAL Salary Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. The code is to be used for making salary payments to employees. ALW Allowances The code is to be used for making payments to employees for allowances. BON Bonus The code is to be used for making bonus payments to employees. COM Commission The code is to be used for making commission payments to employees. COP Compensation The code is to be used for making payments to employees for compensation. EOS End of Service The code is to be used for making payments to employees for their end of service benefits. LAS Leave Salary The code is to be used for making leave salary payments to employees. OVT Overtime The code is to be used for making payments to Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, TKT employees for overtime CORPORATES.
Tickets Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. The code is to be used for making payments to employees for tickets ACM Agency Commission The code is to be used for making payments to other companies for agency commissions CCP Corporate Card Payment The code is to be used for making payments to cards held in the name of the company. CRP Credit Card Payments The code is to be used for making credit card payments CHC Charitable Contributions Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. Only to be used RETAIL account holders (Individuals) Can be used by all types of Customers. The code is to be used for making contributions to designated accounts held by charitable institutions REM Remittance Can be used by all types of Customers. The code is to be used for making any payments to individuals or non‐individuals accounts for any payments that cannot be classified in any of the codes described above. CBP Cross Border Payments Can be used by all types of Customers. INV Miscellaneous Payment with Invoice Details
Can be used by all types of Customers. ROB Miscellaneous Payment with Beneficiary Customer Reference Can be used by all types of Customers. ROC Miscellaneous Payment with Ordering Customer Reference Can be used by all types of Customers. Question 16: Is there a link between the Transaction Type codes and Details of Payments Codes? Answer: Yes. Transaction Type code is introduced by the regulator to capture the underlying nature of the transaction for regulatory purposes. The value captured in this field has an impact on the Payment Details Code.