Accounting of Money Transfers in the International Banking System

This thesis examines the accounting of money transfers within the international banking system, using Jordanian commercial banks as a case study. The research explores the impact of the financial accounting system on the accounting practices of these banks, and how they respond to accounting reforms and disclosure requirements. It investigates the role of the financial accounting system in improving the accounting of bank transfers and ensuring compliance with international accounting standards (IFRS). The study covers the period from 2010 to 2018, focusing on the processes, standards, and challenges related to international money transfers, and their implications for the banking sector. The research also considers the importance of bank transfers for customers and the role of technology in facilitating these transactions.

Accounting of money transfer in the international banking system and
a Jordanian banking example
By: Mahmoud ahmad musa al-ababneh
Master’s degree in MBA business administration / Istanbul Aydin
University
Istanbul - turkey
Adviser:
Assist. Prof. Dr. Hulya boydas hazar

ABSTRACT
Banks and especially commercial banks are facing a formidable array of risks that
can be due to global competition, complex financial instruments, mergers,
downsizing, which all create a riskier operating environment for organizations,
specifically banks. This is a study of money transfers in the international banking
system that I conducted in my MBA business administration program, I hope I can
identify how is the money transfer happens in the international banking system?
this study took place in Jordan as an example and in the world in general , the
sample of this study is the banking force in Jordan and there transactions with the
banks all over the world , In this thesis I will clarify the methods I used to get the
answers I was aiming to get out of this study .

I dedicate this thesis for my mother may her soul rest in peace, my
father may god bless him, my brothers and sister and my future wife
Ranad alzoubi.

ACKNOWLEDGMENTS
This project would not have been possible without the support of many people.
Many thanks to my adviser, Hulya hazar, who read my numerous revisions and
helped, make some sense of the confusion. Also thanks to my father Ahmad
Ababneh, my friend Mohammad bataineh, who offered guidance and support.
Thanks to the Istanbul Aydin University for awarding me and providing me with
the means to complete this project. Finally, thanks to my future wife Ranad alzoubi
for all the love and support.

TABLE OF CONTENTS
Table of Contents :
Chapter one:
Introduction :.........................................................................................................................................2
Problem of Research :............................................................................................................................2
Search hypotheses:................................................................................................................................3
Reasons to choose a topic :....................................................................................................................3
- The Importance Of Studying :....................................................................................................3
Objectives of the study :.........................................................................................................................4
The limits of the study:...........................................................................................................................4
Timeline : The study time limits from 2010 to 2018..........................................................................4
Research Methodology :........................................................................................................................5
Table of Contents :.................................................................................................................................6
Chapter one : international money transfers.........................................................................................9
Topic one : what is international money transfers.............................................................................9
Topic two : example about international money transfers................................................................9
Topic three : the process of international money transfers...............................................................9
Chapter two : The Accounting of international money transfers...........................................................9
Topic one : IFRS..................................................................................................................................9
Topic two : recording..........................................................................................................................9
Chapter three : examples of othe countries...........................................................................................9
Chapter four : Jordanian international banks........................................................................................9

Chapter one:
Introduction
Historically, accounting has evolved as a logical consequence of meeting the needs
and requirements of economic and social development and progress in the world of
finance and business, and with increasing the functions and duties of accounting, it
has been one of the most important elements of upgrading it and ensuring its
continuity as a social science is its ability to respond to these requirements.
In addition, the banking system has witnessed a rapid development in the range of
services it offers in terms of its variety, mix of products and the technology it uses.
Therefore, these challenges have forced the accounting to provide answers to many
of the current banking problems, their evolution from traditional systems to
modern systems and follow-up of creative trends in international banking
especially in the Jordanian international banks.
Transfer money plays a pivotal role in helping an organization achieve its
objectives. There has been a growing recognition of the strong connection between
effective risk management and transfer money, which has supported by the
International Standards for the Professional Practice of Transfer money, which
provided a solid basis for accounting system in the banking system. With regard to
broad direction, these standards have stated that the primary objective of
accounting system is to assess and develop the efficiency of transfer money and
processes within the banking.

Accounting Transfer money depends on the International Standards. Its primary
role regarding of transfer money is to provide objective assurance to the abroad
regarding the effectiveness of the remittances. In fact, research has shown that
international standards have a high importance in transferring money in proportion
to the accounting system in local and international banks in a way that does not
contradict the interests of organizations that wish to transfer money.
Problem of Research :
Since the adoption of the Kingdom of Jordan on the accounting and financial
system at the beginning of 2010, the system has sought to include all institutions
regardless of the nature of their activities. However, the banking sector and its
distinctive activities make it unique in a special way that separates it from other
sectors. Despite this difference, the accounting and financial system to the banking
sector to apply the same basic rules and principles used in other entities, so we will
study in this thesis:
-How does the application of the accounting system effect on the accounting
practices of the Jordanian international commercial banks?
-What will happen if Jordanian commercial banks respond to accounting reform?
- How is the commercial banks committed to accounting disclosure in their
financial statements for bank transfers according to the financial accounting
system?
-What is the role of the financial accounting system in improving the reality of the
accounting of bank transfers to Jordanian international banks?

Bank transfers provide a great benefit to bank customers, which lead to the transfer
of financial rights without resorting to the transfer of money sense, and is
characterized by other methods of payment is inexpensive and quick
implementation and easy to use by banks, in addition to the safety of the result of
Advanced control procedures the banks, which led to the desire of many people on
this type of contracts and confidence in the efficiency of this service provided by
the bank; which called on banks to allocate branches for conversion, and emerged
companies specializing in the conduct of remittances.
In addition, its great importance as it coincides with Jordan's compliance with the
International Accounting Standards (IPSAS) through the financial accounting
system, so that we address the financial accounting system at the level of banks
and financial institutions, making it a scientific material that benefits students and
researchers and contributes to raising their understanding of accounting in the
banking sector.
Search hypotheses:
Through the sub-questions, the following hypotheses were developed:
-The international banks of Jordan are obliged to disclose the accounting in their
financial statements to a great extent in accordance with the accounting system.
-Commercial banks respond adequately to accounting reform by applying the
financial accounting system.
-The role of the financial accounting system is to facilitate financial and
accounting transfers to improve the accounting system in Jordan to comply with
international accounting standards.

Reasons to choose a topic :
- The personal desire of the researcher to expand and deepen the topics of
financial accounting
- Attention to the theme of the compatibility with the researcher's specialty
- Entry into the market economy requires reconsideration of the banking
system as a whole, on the one hand, and the accounting of international
remittances on the other hand
- The Importance Of Studying :
- Bank transfers provide a great benefit to bank customers, which lead to the
transfer of financial rights without resorting to the transfer of money sense,
and is characterized by other methods of payment is inexpensive and quick
implementation and easy to use by banks, in addition to the safety of the
result of advanced control procedures The banks, which led to the desire of
many people on this type of contracts and confidence in the efficiency of
this service provided by the bank; which called on banks to allocate
branches for conversion, and emerged companies specializing in the
conduct of remittances.
- In addition, it is of great importance as it coincides with Jordan's
compliance with the International Accounting Standards (IPSAS) through
the financial accounting system, so that we address the financial accounting
system at the level of banks and financial institutions, making it a scientific

material that benefits students and researchers and contributes to raising
their understanding of accounting in the banking sector.
Objectives of the study :
- Acquiring new information regarding banking accounting from the point of
view of the financial accounting system
- Know the extent of qualification of international banks to work in
accordance with international accounting standards
- Provide a clear and simple picture of the outputs of the financial accounting
system for remittances in international banks.
- The limits of the study:
- Timeline : The study time limits from 2010 to 2018
- the research paper is projected to take about ( 32 weeks ) of preparation
below i shall elaborate the duration of every phase :
- collecting material : 5 weeks
- purview study : 2 weeks
- preparing introduction : 2 weeks
- sample selection and talk with community : 2 weeks
- write the thesis : 12 weeks

- data collection : 2 weeks
- data entry and analysis : 2 weeks
- analysis result : 2 weeks
- recommendation : 1 week
- review : 2 weeks
- Spatial boundaries: The study will be limited to Jordanian commercial
banks.
- Temporal Boundaries: The study will take place during the second
semester of 2019/2020.
This study is also limited by the fact that its results cannot be generalized to other
sectors for that matter. In addition, the results of this study will determine the
generality of the instrument validity and stability, as well as the accuracy of the
response of the subjects and their objectivity to the study instrument.
- Research Methodology :
- In order to address the problem of the subject of the study and analyze its
dimensions and try to test the validity of the hypotheses submitted was
based on the curriculum
- In some of the parts related to the theoretical and conceptual framework
with regard to the accounting of bank remittances.
- In order to become acquainted with all aspects of the subject, we followed
the descriptive and analytical approach supported by models and tables to

simplify and understand the subject and answer the questions and prove
the hypotheses
- The study will focus on the money transfer process
- Conceptual and operational :
- Accounting:
- Electronic Banks:
- Remittances:
- EFT:
- IFRS:
- Swift: