Standard domestic account number systems exist in most countries. The IBAN is not a single account number structure to replace these. Instead, it is a way of representing existing account numbers in a standard recognisable format, which can be verified using mathematically calculated check digits. To make a payment, customers will need to quote an IBAN and its associated Bank Identification Code (BIC) in the same way they currently quote an account number and a BIC.

An IBAN consists of a header placed in front of a country's normal domestic account number format. This header consists of a two character country code followed by a pair of check digits. In the United Kingdom, and in some other countries, a code (the first four characters of the BIC) has been incorporated in front of the standard domestic account to clearly identify the issuing bank.

Example of a UK IBAN:

The country code enables recognition of the country in which the IBAN was issued. It also indicates the national account structure to be used when deciphering the domestic 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. There is a formula by which any party can perform an integrity check on an IBAN that has been quoted to them.

Please note that the use of the IBAN validator does not guarantee that the bank code and account number are correct, nor does it guarantee that the account actually exists or is live. It checks that the characters/numbers have not been accidentally transposed.

Examples of 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
Gibraltar	GI75NWBK000000007099453	Spain	ES0700120345030000067890
Greece	GR1601101250000000012300695	Sweden	SE3550000000054910000003
Iceland	IS140159260076545510730339	Switzerland	CH9300762011623852957
Ireland	IE29AIBK93115212345678

 

In March 2006, ISO amended the international country code standard, assigning the Crown Dependencies (Jersey, Guernsey and the Isle of Man) codes, which could be used instead of GB. The amendment implied that IBANs (which include an ISO country code prefix) issued for accounts in the Crown Dependencies should no longer use the Great Britain prefix (GB), but a code specific to the individual Crown Dependency – JE for Jersey, GG for Guernsey and IM for the Isle of Man.

However, given that:

• payments bound for accounts based in the Crown Dependencies are not cleared there
• new IBANs would have to be issued for every account based in the Dependencies
• there is likely to be confusion among customers used to the current system 
• and any change might complicate payment initiation and reconciliation processes where the GB prefix is expected and recognised

APACS members have taken the decision to continue using the GB prefix for accounts based in the Crown Dependencies and routed via UK clearing. UK-based financial institutions, along with those located in Jersey, Guernsey and Isle of Man, should not therefore change their current practice and should continue to use the GB prefix for IBANs.  The use of IBANs for sterling and euro accounts has been compulsory since July 2003.