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 

The code is to be used for making salary payments to employees. 

Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. 

ALW   Allowances  

The code is to be used for making payments to employees for allowances. 

Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. 

BON   Bonus  

The code is to be used for making bonus payments to employees. 

Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. 

COM   Commission  

The code is to be used for making commission payments to employees. 

Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. 

COP   Compensation  

The code is to be used for making payments to employees for compensation. 

Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. 

EOS   End of Service  

The code is to be used for making payments to employees for their end of service benefits. 

Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. 

LAS   Leave Salary  

The code is to be used for making leave salary payments to employees. 

Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. 

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, 

employees for overtime  CORPORATES.

TKT   Tickets  

The code is to be used for making payments to employees for tickets 

Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. 

ACM   Agency Commission  

The code is to be used for making payments to other companies for agency commissions 

Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. 

CCP   Corporate Card Payment  

The code is to be used for making payments to cards held in the name of the company. 

Only to be used by NON‐RETAIL account holders (non‐Individuals), such as SME, CORPORATES. 

CRP  Credit Card Payments  

The code is to be used for making credit card payments 

Only to be used RETAIL account holders (Individuals) 

CHC  Charitable Contributions  

The code is to be used for making contributions to designated accounts held by charitable institutions 

Can be used by all types of Customers. 

REM   Remittance  

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. 

Can be used by all types of Customers. 

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.