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Customers with accounts in Malaysia: mandatory Purpose of Payment code requirement effective 1 July 2017

Last updated: 19 May 2017

Since March 2015, you have been able to include Purpose of Payment information for your Malaysian payment instructions on HSBCnet. In line with local regulations, from 1 July 2017, a valid Purpose of Payment code will become mandatory for all payments from accounts in Malaysia.  

As part of this requirement, if you don't include a valid Purpose of Payment code in the appropriate field of your payment instructions from 1 July 2017, your transaction(s) will be rejected.

Payments that require a valid Purpose of Payment codes are:

• Priority Payments
• Inter-account Transfers
• Customer Transfers

Select here to view the full list Purpose of Payment codes for Malaysia >

Payments submitted on-screen in HSBCnet
From 1 July 2017, the Purpose of Payment field on HSBCnet payment/template screens will become mandatory for payments from Malaysian accounts. To input a valid purpose code, select the Look up code in a list link in the Regulatory reporting section and choose the appropriate code for your payment in Malaysia.

(Select image to enlarge)

Please note, we recommend that you start updating your existing payment templates to include valid Purpose of Payment codes with effect from 1 July.

Payments submitted via the File Upload service
The Purpose of Payment code is mapped into tag 77B of MT103/MT101 of your payment files. You are required to include Purpose of Payment information in this field from 1 July 2017.

The following table provides information on impacted file formats, and the Purpose of Payment input fields, for Malaysian payments effective 1 July 2017:

File format	Purpose of Payment input field
Paymul	FTX /ORDERESS/MY/ followed by first 5 characters for Purpose code and the next 30 characters for BNM code
XML ISO20022 (v2)	<RgltryRptg>                                           <RgltryDtls>                                                <Inf>{Purpose of payment description}</Inf>                 </RgltryDtls>                                       </RgltryRptg>                                      <Tax>                                       <TaxTpInf>                                     <TaxTp>                                            <CtgyDesc>{Purpose of Payment code}{BNM Approval code}</CtgyDesc>               </TaxTp>                                    </TaxTpInf>                             </Tax>
XML ISO20022 (v3)	<<RgltryRptg>                                        <Dtls>                                                    <Tp>{BNM Approval Code}</Tp>                                 <Cd>{Purpose of payment code}</Cd>                                      <Inf>{Purpose of Payment description}</Inf>        </Dtls>                           </RgltryRptg>
MT103	:77B:/ORDERRES/MY/{PurposeOfPaymentCode}{BNM Approval Code} //{Purpose of Payment description}         //{Purpose of Payment description}
iFile	SECPTY(65) Regulator Reporting Line 1  contains 5 byte Purpose of Payment code + 30 byte BNM Code.
iDOC	Consult the bank if you use this format.
For an updated Message Implementation Guide (MIG) for your files, please contact your Client Services representative.

For questions about Purpose of Payment code requirements in Malaysia, please contact your local HSBCnet Support Centre or your HSBC representative.

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