Why do I need to select the transfer purpose?

Updated:

For some international transfers, you need to select a purpose before sending the money. This information is required by regulations in the recipient country and helps the recipient bank process your transfer correctly.

If the purpose is missing or doesn’t match the transfer, the recipient's bank may delay, reject, or return it.


When do I need to select a transfer purpose?

You need to select a transfer purpose when:

  • sending a transfer to the United Arab Emirates
  • sending a transfer to Bahrain
  • sending a transfer in CNY to a Chinese business

You’ll see the available purposes when setting up your transfer.


Why is the transfer purpose required?

The requirement comes from regulations in the country receiving your transfer.

United Arab Emirates

The Central Bank of the UAE requires a Purpose of Payment for applicable transfers. It helps banks classify international money flows and meet legal requirements.

Bahrain

The Central Bank of Bahrain also requires payment purposes for applicable transfers. The information is used for balance of payments reporting and legal requirements.

China

When you send CNY to a Chinese business, the recipient bank needs to know what the payment is for. This can include payments for goods or services, or capital transfers.

This information is also used to meet foreign exchange control requirements. Without the correct purpose, the recipient bank may not be able to credit the money to the recipient’s account.


Which purpose should I select?

Choose the option that best describes why you’re sending the money. Depending on the destination, available purposes may include:

United Arab Emirates

  • Family support
  • Goods sold
  • Goods bought
  • Fees for repair and maintenance services
  • Own account transfer
  • Salary
  • Travel
  • Technical trade-related and other business services
  • Utility bill payments

Bahrain

  • Own account transfer
  • Family support
  • Goods sold
  • Goods bought
  • Fees for repair and maintenance services
  • Salary
  • Travel
  • Technical trade-related and other business services

China

  • Cross-border capital transfer
  • Cross-border goods trade
  • Cross-border service trade
  • Other transfers

Always select the purpose that reflects the actual reason for your transfer.


What happens if I select the wrong purpose?

If the purpose is missing or doesn’t match the transfer:

  • the transfer may be put on hold
  • the recipient bank may ask for supporting documents
  • the transfer may be returned
  • intermediary bank fees may apply if the transfer is returned

Selecting the correct purpose helps the recipient bank process your transfer without unnecessary delays.

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