The Authorization Letter For 3rd Party Payment is a crucial document in the United Arab Emirates' business and financial landscape, where third-party payment arrangements are common in various commercial contexts. This document becomes necessary when an individual or organization needs to delegate payment authority to another party, whether for operational efficiency, business continuity, or specific transaction requirements. The letter must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and UAE Central Bank regulations, particularly regarding agency relationships and financial transactions. It typically includes comprehensive details about the authorizing party, the authorized party, specific payment parameters, transaction limits, and duration of authority. The document serves as a legal basis for banks and financial institutions to accept payment instructions from the authorized third party, while maintaining compliance with UAE's anti-money laundering and financial security requirements.

1. Letter Header: Date, reference number, and formal letterhead of the authorizing party

2. Recipient Details: Full name and address of the bank/financial institution to whom the authorization is addressed

3. Subject Line: Clear indication that this is an Authorization Letter for Third Party Payment

4. Authorizing Party Details: Full name, address, and account details of the person/entity giving authorization

5. Authorized Party Details: Full name, identification details, and contact information of the person/entity being authorized to make payments

6. Authorization Scope: Specific details of the payment authorization including maximum transaction limits, types of payments permitted, and any restrictions

7. Duration of Authority: Clear statement of the period for which the authorization is valid

8. Authentication Method: Specified method for verifying the authorized party's identity when making payments

9. Declaration: Statement confirming the authorizing party's consent and assumption of responsibility

10. Signature Block: Space for authorizing party's signature, name, date, and any required witnesses