Jordan: Purpose of Payment Code Implementation
The Jordan Central Bank is introducing a list of national Purpose Codes, which is effective from February 2, 2015. This is a major initiative applicable to all banks in Jordan.
The Purpose Codes initiative consists of a Uniform Code List with 4 digit code(s) – please click here to view. The main objective of capturing these codes is to determine the purpose of incoming and outgoing financial transfers as per Jordan Central Bank’s requirement. All banks in Jordan are required to process payment instructions with the purpose code.
Consequently, you will be required to provide the purpose code for all instructions after February 2, 2015, for effecting you transfers destined for Jordan in any currency, through any correspondent bank. Please provide the accurate purpose code when you make payment to Jordan in the “remittance information” field on the paper instruction or mandatory filed in Straight2Bank (as displayed below). Your payments will get delayed if there is no purpose code mentioned, and might get rejected.
FAQs
What is Purpose of Payment Code?
It is a code containing 4 characters that indicate the purpose of the payment (applicable on both incoming and outgoing payments to/from Jordan). The purpose code will be used for statistical analysis internally and at Central Bank of Jordan. The list of codes is assigned and created by Central Bank of Jordan, and any invalid code that does not belong to the list at the time of the payment will be rejected. The Purpose of payment code is mandatory for all outgoing and incoming payments starting 02 February 2015.
What if your payment has no related code within the list provided?
The list of codes is comprehensive and was created by the Central Bank of Jordan. It has all possible reasons for payments (Both domestic and cross border payments). The central bank requires all payments to include one of the codes in the mentioned list.
What will happen if the purpose code is not provided in the payment instruction?
If SCB Jordan is the beneficiary bank, the policy is to send a communication to the ordering bank asking them to provide a proper purpose of payment code. The payment will be held for three working days before SCB Jordan return it to the ordering bank in case of not receiving any reverts. Other banks in Jordan may also have a similar policy.
If you have more questions, please feel free to leave your contact information below and click “submit”. We will contact you as soon as possible.