The Banking Executive Magaizne - March 2025 Issue

CBO CBO ANNOUNCES IBAN IMPLEMENTATION FOR ALL LOCAL FINANCIAL TRANSACTIONS The Central Bank of Oman (CBO) announced the go-live date for im- plementing the International Bank Account Number (IBAN) on the do- mestic financial transactions with ef- fect from 1 July, 2025. This expansion will enhance the ef- ficiency of local payment transac- tions, minimise operational errors, and expedite financial transfers be- tween individuals and businesses, the CBO said. It will also improve the overall cus- tomer experience by ensuring faster and more secure banking transac- tions. It is worth noting that CBO imple- mented the IBAN system for interna- tional transfers on 31 March, 2024 as part of its ongoing efforts to enhance the efficiency and security of finan- cial transactions. According to the central bank this initiative has significantly improved transaction accuracy, reduced errors, and accelerated processing times for both local and international bank transfers. Given the success of this implementation, CBO is taking the next step by discontinuing the ac- ceptance of international transfers that do not include an IBAN. This measure ensures further alignment with international standards and best banking practices. In this context, the CBO has issued directives to local banks to stop re- ceiving cross-border transfers that do not include IBAN number, as of 1 July, 2025. Instead, the use of IBAN Number will be mandatory for all in- coming international transactions. Banks have been guided to imple- ment an awareness campaigns for their customers on the importance of using IBAN number and its benefits, the CBO said. It was also stressed on the need to provide the necessary guidelines to ensure safer and faster banking experience. The Central Bank of Oman has urged all customers to ensure they obtain their IBAN from their local banks and to use it in all financial transfers to ensure smooth transaction process- ing. the BANKING EXECUTIVE 14 ISSUE 195 MARCH 2025