IBAN stands for an International bank account number and is an internationally accepted number used to identify individual bank accounts worldwide. Banks use IBANs to process money bank transfers and ensure payment arrives in the correct location.
Which countries Use IBANs?
IBAN codes are used in numerous countries across Europe, the Middle East, and the Caribbean. Some of the most popular countries where IBAN codes are used include:
- Saudi Arabia
- United Arab Emirates
What happens if I don’t have an IBAN code? If you don’t have an IBAN code and are trying to make an international bank transfer or payment, your transaction and money transfers may be rejected or delayed. In some cases, you may be able to provide your bank’s SWIFT code as an alternative to the overseas bank. However, it’s always best to check with your bank first to see if they accept SWIFT codes for international payment.
IBAN vs. SWIFT Codes
The International Bank Account Number (Iban), also known as the IBAN number, is a unique identifier assigned to each bank account held within the European Union. This identification number consists of three parts: the issuing country; the account holder’s name; and the account number itself.
The Society for Worldwide Interbank Financing (SWIFT) is an independent cooperative headquartered in Brussels, Belgium. Founded in 1973, it is the world’s largest provider of secure messaging services for banks and corporations. Its members include over 11,500 financial institutions operating in nearly 200 countries and territories worldwide.
While both systems are widely accepted globally, there are differences in how they work with international wires.
In addition to the Iban, SWIFT codes are also used to identify an individual bank account involved in an international transaction. These codes are often referred to as IBAN numbers. However, while IBAN numbers are required to identify a particular bank account, SWIFT codes are used to identify the sender and recipient of funds. The SWIFT code identifies the sending institution and the receiving institution.
Main Functions of an IBAN Number
IBAN stands for International Bank Account Number. This code allows you to identify the type of institution where the funds are coming from, what currency they’re denominated in, and what country they’re being transferred into. Banks use IBAN numbers to send and receive financial transactions across borders. They are used to identify the location of the recipient’s account and to make sure the transaction goes smoothly.
How Do You Find Your Account’s IBAN?
The International Bank Account Number (IBAN) is a unique identifier for each financial institution where you conduct business. It appears on every paper bank statement you receive and on virtually all electronic statements sent via email or text messaging. However, it may also appear inside your Web-based account if you are using online banking. If you are not able to locate it, contact the bank, try the IBAN Registry, an IBAN calculator tool, or ask your banker.
Contact UCT(Asia) for more information
With several years of expertise in sourcing and procurement legalities across borders, you can contact us to learn more about money transfers and international payment. We can guide you through all the procedures to ensure that you are not having any issues. So, please don’t hesitate to get in touch with UCT(Asia) today.