Financial Crime World

Financial Institutions and Compliance in British Indian Ocean Territory: Key Requirements for Wire Transfers

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The British Indian Ocean Territory (BIOT) financial sector has outlined specific guidelines for wire transfers to ensure compliance with regulations and efficient processing. This article will outline the key requirements for wire transfers, including supported payment modes, currencies, and networks.

Supported Payment Modes and Currencies

Supported Payment Modes

  • B2B (Business-to-Business) transactions
  • B2P (Business-to-Person) transactions
  • P2P (Person-to-Person) transactions
  • P2B (Person-to-Business) transactions

Supported Currencies

  • USD (United States Dollar)
  • EUR (Euro)
  • SGD (Singapore Dollar)
  • GBP (British Pound)
  • AUD (Australian Dollar)
  • CAD (Canadian Dollar)
  • HKD (Hong Kong Dollar)
  • JPY (Japanese Yen)
  • CHF (Swiss Franc)
  • NZD (New Zealand Dollar)

Network Participation

All SWIFT-enabled banks in the territory are eligible to facilitate wire transfers. Live interbank-based rates are available 24/7, including off-market hours, providing real-time exchange rate updates.

Cutoff and Delivery Timing

The cutoff for wire transfers in BIOT is set at 07:30 UTC, ensuring timely transmission of funds across borders. Same-day processing is subject to this cutoff time.

Mandatory Data Requirements

Mandatory data requirements for wire transfers include:

  • Detailed information about the remitter and beneficiary, including:
    • Names
    • Account types
    • Identification numbers
    • Addresses
    • Country codes
  • Supporting documents such as:
    • Commercial agreements
    • Current invoices
    • Proof of payment (may be required in certain cases)

Beneficiary Statements and MT103 Messages

Beneficiary statements will include a narrative detailing the transfer purpose. MT103 messages will pass on ultimate sender name and details to beneficiary banks. Proof of payment can be provided upon request, with MT103 serving as an acceptable proof of payment.

Important Note

  • WIRES cannot be sent to OFAC-listed countries.
  • Foreign currency wire transfers in currencies such as USD, EUR, and GBP support both OUR (Sender’s account) and SHA (Shipper’s account) fee types.
  • Other currencies require only SHA fee type.