On August 5, 2019, The Regulation of the Board of the National Bank of Ukraine No. 162 dated December 28, 2018 "On Introduction of the International Bank Account Number (IBAN) in Ukraine" will come into effect.
This Regulation simplifies and unifies the use of bank account numbers in accordance with the European standard IBAN (International Bank Account Number).
These IBAN rules of use were first developed and approved by Standard No. 13616 of the International Organization for Standardization ISO and the European Committee on Banking Standards (ECBS). The novelties of this standard are the use of a unified alphanumeric code, which allows to identify the country of the bank, the bank code and the recipient's account.
In total, IBAN accounts consist of a maximum of 34 characters, which specified in the following sequence:
- Country code - two letters;
- The control digit is two digits;
- The bank code is six digits;
- The recipient's account.
Introduction of these changes in Ukraine will allow to simplify the writing of bank details and exclude from them the obligatory indication of the bank, the bank's MFO code, the recipient's account and other related details. In addition, these changes bring the Ukrainian banking system closer to the European system, whose banks use simplified systems of identification of bank details, such as IBAN and SWIFT.
Among other things, thanks to the entry into force of the above-mentioned NBU Regulation, bank clients will be able to do:
- Convenient and easy identify the payer and recipient of funds, as well as the bank of Ukraine, which serves them;
- Avoid mistakes in account details by reducing account details in settlement documents;
- Make transfers and receive funds faster;
- Reduce the cost of bank charges for the transfer of funds.
Moreover, the National Bank of Ukraine in the future plans to provide the possibility of implementing the standard for making payments with the use of QR codes. The appliance of QR codes, which will contain information about IBAN, will contribute to the simplification of payment of bills and exchange of payment information.
Deiak Law Firm carefully analyzes and studies all legislative initiatives that concern the interests of our clients, especially in the areas of international trade, banking and finance law.
