Withdrawals from IBKR to UAE banks rejected

[pomegranate]

I have recently tried several USD withdrawals from IBKR to UAE bank accounts. All of them were rejected by local banks because it was missing the "necessary regulatory information".

For sending payment to the UAE, the regulator requires two extra pieces of information:
1) a residency indicator for the beneficiary.
2) a purpose of payment code.

Usually, you simply need to add this as a message to your SWIFT transfer.
The format for the addition would look like this: /BENEFRES/AE//AFA

However, It is impossible in IBKR to add any reference/message to the withdrawal request.

Q: How do all the Dubai people here manage to withdraw from IBKR to their local accounts? Do you have the same issue?

(There are no issues for deposits)
---------------------------------------------------------------
For reference, there are a couple of banks referring to this issue online:
http://connect-content.us.hsbc.com/hsbc_pcm/onetime/2017/October/17_r53_uae_pop_details.htmlhttps://help.bankline.rbs.com/help/payments/international/PurposeCodeUAEDubaihttps://cashmanagement.bnpparibas.com/currency/aedhttps://av.sc.com/ae/content/docs/ae-purpose-of-payment-requirement.pdf
https://www.citibank.com/tts/docs/AED_Transaction_Type_Codes.pdf

 

[wellington]

Had a few payments from Taiwan that got rejected, never found out why... about a year ago.. good to see this could be all it was.

 

[MiddleEuroAsia]

pomegranate said:
I have recently tried several USD withdrawals from IBKR to UAE bank accounts. All of them were rejected by local banks because it was missing the "necessary regulatory information".

For sending payment to the UAE, the regulator requires two extra pieces of information:
1) a residency indicator for the beneficiary.
2) a purpose of payment code.

Usually, you simply need to add this as a message to your SWIFT transfer.
The format for the addition would look like this: /BENEFRES/AE//AFA

However, It is impossible in IBKR to add any reference/message to the withdrawal request.

Q: How do all the Dubai people here manage to withdraw from IBKR to their local accounts? Do you have the same issue?

(There are no issues for deposits)
---------------------------------------------------------------
For reference, there are a couple of banks referring to this issue online:
http://connect-content.us.hsbc.com/hsbc_pcm/onetime/2017/October/17_r53_uae_pop_details.htmlhttps://help.bankline.rbs.com/help/payments/international/PurposeCodeUAEDubaihttps://cashmanagement.bnpparibas.com/currency/aedhttps://av.sc.com/ae/content/docs/ae-purpose-of-payment-requirement.pdf
https://www.citibank.com/tts/docs/AED_Transaction_Type_Codes.pdf
Click to expand...

I use companies to trade in iBKR.
Delaware Co --> IBKR --> Mercury --> wise EUR ---> UAE EUR account. that's one way to do it.
I try to avoid dealing with US dollars outside USA. less headaches.

 

[pomegranate]

Thanks for the answers - Although I understand the central bank's requirements apply to whatever the currency (not only USD). It seems like it is not applied consistently though. Would love to hear about other people's experiences.

 

[freedomseeker]

MiddleEuroAsia said:
I use companies to trade in iBKR.
Delaware Co --> IBKR --> Mercury --> wise EUR ---> UAE EUR account. that's one way to do it.
I try to avoid dealing with US dollars outside USA. less headaches.
Click to expand...

How does one structure a company to trade with IBKR?Can non Americans set this up? Is it very difficult? Could one use say a wyoming LLC? What is the KYC like? Any limitations on where one is a resident in the world?

What makes the USD a headache outside of the states?