<p>The QCB Regulations set the SWIFT system for the interbank dealings  e.g. in relation to the messages of the daily inter-bank payments, the  message no.&rdquo;MT203&rdquo; or &ldquo;MT202&rdquo; should be used to transfer any amount from  the clearing account of the bank to one or more of the banks operating  in Qatar.&nbsp; No other messages will be accepted for this purpose.&nbsp; In  addition, the field &ldquo;58A&rdquo; should be used to indicate the beneficiary  bank.&nbsp; If the beneficiary bank is not a Swift system user, the field  &ldquo;58D&rdquo; should be used according to the bank&rsquo;s identification symbol.&nbsp;</p>
<p>According to the QCB Regulations, the bank issuing the SWIFT message  will be liable for sending the messages correctly.&nbsp; All banks should  liaise with the Banking, Payment and Settlement Systems Department of  the QCB to be advised of the updated technical details for sending SWIFT  messages.&nbsp;</p>
<p>If a SWIFT message is issued clearly and in line with the QCB  Regulations in relation to each type of dealing, it shall have a binding  effect on the sending bank.&nbsp;</p>
<p>The TELEX system is also considered an alternative by QCB for banks that are not yet set up with the SWIFT system.</p>
<p>The E-Commerce Law provisions apply to transactions between parties  who agree to conduct transactions using electronic communications.&nbsp; The  law defines electronic communication as any transmission, emission or  reception of signs, signals, writing, images, sounds, pictures, data or  information of any kind by wire, radio, optical, other electromagnetic  means of communications or any other similar means of communication.  This definition is broad enough to cover SWIFT messages being a way of  transmitting data.</p>
<p>The law excludes governmental entities from the above rule by stating  that governmental entities shall give explicit consent in relation to  electronic transactions of which they are a party. This also indicates  that the electronic communication implies the consent of the parties and  accordingly should be binding on them, except for governmental entities  who must give their explicit consent.</p>
<p>Article 4 of the E-Commerce Law further elaborates on the contract  formation for conducting transactions, that an offer or acceptance of an  offer may be expressed, in whole or in part, by means of electronic  communications.</p>
<p>A contract or transaction shall not be denied validity or  enforceability solely on the grounds that one or more electronic  communications were used in its formation.</p>
<p>In light of the above, SWIFT messages are a valid and legally binding  method of communication between the banks, provided that the QCB  Regulations and the E-Commerce Law provisions are observed in relation  to each type of dealing.</p>