International Bank Account Number (IBAN)
What is IBAN?
The approved IBAN structure cannot exceed 34 alphameric characters (the letters in this code are used from the Latin alphabet and are only in capital letters). This account structure includes the following elements:
- First two characters are the letter code of the country where the beneficiary’s bank is located
- 3-4 characters is a control unique IBAN number, calculated according to the standard
- The characters 5-8 are the first 4 characters of the BIC code of the bank
- The figures 9-34 is a domestic/interbank account number of the bank customer.
In other words, IBAN is a modified client account in a bank. It provides a single standard is needed to reduce the error frequency committed when sending transfers.
Thus, IBAN code is an alphanumeric character set, which can be used to determine whether the details belong to a specific recipient and a specific bank. Also, there is the code of the country where the client account is served.
Swift transfers are sent with IBAN-code. Generally, each bank has its own type of payment documents, but the name of the fields to complete and the form of completion are similar.
Here is an example of filling out a payment document for sending a currency transfer:
- Field “Sender”. The name of the sender, his address (city, street, house) is indicated here.
- The sending bank.
- Bank of a beneficiary.
- Field “Beneficiary”(this is the recipient of the transfer). It may be an individual or an organization. It is indicated in full compliance with the details. For a private person, it is obligatory to indicate the address of residence.
- IBAN code (that is means the account of the recipient).
- Purpose of payment (specification of the purpose of the transfer, “payment to It is important that the goal is clear and not ambiguous.