Why are IBANs being introduced?
The use of IBANs will standardize the identification of bank accounts.
When a cross-border payment is made in Europe, an IBAN will be used to
identify the account to which the payment should be made. Their use will
reduce payment errors and delays.
The use of IBANs does not extend to UK domestic payments.
How will bank account identification
change?
An IBAN is NOT a new bank account number. Existing sort codes and
account numbers will be retained, and additional characters will be added
to create a standard identifier which is known as an IBAN.
How will an IBAN be identified
An IBAN is not a single account structure to replace the national
numbering systems. It is a way of representing national account numbers in
an internationally recognised standard format. An IBAN adds a country code
and check digits to the front of the domestic account number format.
To make a payment, you will need to quote an IBAN and its associated
BIC (Bank Identifier Code) in the same way that you currently quote an
account number and a BIC.
Example of a UK IBAN:
Country Code: GB
Check Digits: 99
Bank Code: RBOS
Sort Code: 123456
Account No.: 12345678
The country code identifies the country in which the IBAN was issued.
It also indicates the national account structure to be used when
deciphering the account number contained within the IBAN.
The check digits are calculated by the financial institution issuing
the IBAN, using a formula applied to the whole IBAN.
Electronic and printed forms of an
IBAN
When an IBAN is printed in paper form, for example on an invoice, the
IBAN may be split into groups of four characters to make it easier to
read. When an IBAN is processed electronically it must not contain blank
spaces and must not include the word "IBAN".
Paper form: GB99 RBOS 1234 56 12 3456 78
Electronic form IBAN: GB99RBOS12345612345678
Examples of other European IBANs
Austria: AT611904300234573201
Italy: IT40S0542811101000000123456
Belgium: BE62510007547061
Luxembourg: LU280019400644750000
Denmark: DK5000400440116243
Netherlands: NL39RABO0300065264
Finland: FI2112345600000785
Norway: NO9386011117947
France: FR1420041010050500013M02606
Poland: PL60102010260000042270201111
Germany: DE89370400440532013000
Portugal: PT50000201231234567890154
Greece: GR1601101250000000012300695
Spain: ES0700120345030000067890
Iceland: IS140159260076545510730339
Sweden: SE3550000000054910000003
Ireland: IE29AIBK93115212345678
Switzerland: CH9300762011623852957
What should I do if I receive an
IBAN on an invoice?
You should quote the IBAN in the account number field on the payment
instruction which you give to your bank. You must also ask your supplier
to provide you with their Bank Identifier Code (BIC). This code tells us
where to send your money.
Will I need an IBAN?
You will only need an IBAN if you invoice people in other European
countries. In addition, your suppliers within Europe may ask for your IBAN.
How do I get an IBAN?
IBANs can be issued by your Relationship Manager or enquire through
your branch of The Royal Bank of Scotland who will also advise of the
suitability of obtaining an IBAN.
