Oman's Banking Revolution: IBAN Now Mandatory

Oman's New Regulation: IBAN Mandatory for Domestic Transfers

Starting from July 1, a new era has begun in Oman's banking system: the country's central bank has made using the IBAN - the International Bank Account Number - mandatory for all domestic financial transactions. The regulation aims to improve the accuracy of transfers, reduce errors from mistyping, and allow for faster processing.

What does this mean in practice?

According to the new rule, from July 1, 2025, providing the IBAN will be obligatory for all domestic money transfers within Oman. Previously, this was required only for international transactions, which was introduced on March 31, 2024. Now, it will also apply to domestic payments. A critical detail is that IBAN-less transactions for international transfers will still be accepted, although not recommended as it increases the likelihood of errors.

What impact does this have on UAE residents?

Residents of the United Arab Emirates transferring money to Oman may have already encountered warning messages in financial apps, such as the Emirates NBD app. Customers are asked to delete and re-add beneficiaries in Oman, this time with an IBAN, otherwise payments may fail. Additionally, the bank has introduced a four-hour "cooling-off period" for newly added beneficiaries, so money cannot be transferred immediately during this time.

What exactly is the IBAN?

The IBAN (International Bank Account Number) is a globally standardized format that allows banks to accurately identify the recipient account, regardless of where in the world it is located. The IBAN includes the country code (for example, "AE" for the UAE), check digits, and the account's technical identifier.

This system is essentially a global postal code in banking terms. Before its introduction, incorrect or faulty payments were common, as banks could not always accurately determine where money should arrive. The IBAN currently covers most of Europe, the Middle East, and some Caribbean countries, making it a proven system worldwide.

Why is this beneficial for customers?

Fewer errors and returns: The IBAN's verification algorithm filters typos before the transfer.

Faster processing: Banking systems can automatically process IBANs, speeding up money movements.

Increased security: Using the IBAN reduces the risk of fraud and misaddressing.

It does not replace but complements existing account numbers by adding an extra layer of security and structure to international and domestic fund transfers.

What should those transferring to Oman pay attention to?

1. Ensure the beneficiary's account number is provided in IBAN format.

2. Update or re-add existing recipients in the application.

3. Consider possible processing times (e.g., the 4-hour waiting period for new recipients).

4. Do not attempt IBAN-less transfers to Oman - such transactions may be rejected by banking systems.

Summary

The introduction of the IBAN in Oman is not merely a technical innovation but a significant step towards unifying the region's banking system. For customers, this means more accurate, secure, and faster transfers, whether domestic or international. However, during the transition, it is advisable to proceed with care to avoid any unpleasant surprises from the new regulation.

(Source of the article: Central Bank of Oman announcement.)