Payment Purpose Codes (PPC) in Bahrain

CBB has introduced new Purpose of Payment Codes which are required for all cross-border SWIFT payments sent from bank accounts in Bahrain, or incoming payments received into your local bank accounts. This mandate will become fully effective from 31st May 2021. More details about this new regulation are posted on the CBB website CBB Rulebook/ Purpose Codes.

The main objective of capturing these codes is to enhance oversight of all incoming and outgoing financial transfers to and from Bahrain. These purpose codes will also enable greater transparency and reporting on all your cross- border payments.

How does PPC affect our customers?

PPC initiative affects customers who make cross border payments to and from Bahrain, where all banks licensed in Bahrain must only process cross border SWIFT payments with a valid purpose code. Payments to and from Bahrain that do not include this additional information or have the incorrect purpose code could be returned/rejected. 

To avoid any delays or inconvenience, it is recommended that:

• When creating new payments, make sure they contain a valid Payment Purpose Code as provided in the list from CBB.
• Select the PPC that is most appropriate for your payment.
• Amend all your existing cross-border standing orders and payments from your account to beneficiary accounts held overseas with the accurate purpose code. 
• When the payments are going to a country that requires their own purpose codes to be included (e.g. UAE, Jordan), please consult with your beneficiary before sending out any instructions to these countries.
• Request all your customers/payers outside of Bahrain to send transfers into your account with the accurate purpose code.  Please refer to the link below.

List of PPCs and Examples of Use

For the full list of Payment Purpose Codes, examples of use and their descriptions, (click here )