The international IBAN bank account is used starting from August 5

The international IBAN bank account is used starting from August 5

In order to assist banks and their clients on this issue, the National Bank drafted a memorandum available on the website of the Regulator (Ukrainian version only).

The regulator reports that bank clients:

  • will be able to receive the information on the current account switch from the bank according to IBAN standard for informing of its counterparties and include it in their settlement documents starting from August 5, 2019

At the same time, switching the current account number under the IBAN standard will cause no amendments to the provisions of the agreement (bank account/ settlement and cash servicing/bank deposit agreement, etc.);

  • will be able to fill in the “Bank code” and “Bank account” details of money transfer documents in any option within a period from August 5, 2019, until October 31, 2019.

 

The payer/recipient details of the money transfer documents can be filled in as a pair of details (payer/ recipient account number and payer/recipient bank code), and payer /recipient account number only under the IBAN standard. In case of filling in the account number of the payer/recipient according to the IBAN standard, to indicate zero in the in the “Code of the payer’s bank/payee’s bank” details;

  • Starting from November 1, 2019, the payment document details indicated in the “Account” section should specify the account number of the payer/ recipient only according to the IBAN standard.

At the same time, Ukrainian banks will do as follows:

  • Starting from August 5, 2019:

open accounts (current, deposit), conditional storage accounts (escrow) in accordance with IBAN standard requirements;

  • will ensure the creation of a statement on the client’s account from the date of opening the account and the amount of the incoming balance by the current account before changing the account according to the IBAN standard (“account history”), with subsequent confirmation of transactions for any date after changing the current account of the client in accordance with the IBAN standard;

execute documents on the seizure of funds/ forced writing-off, charging of funds regardless of the account number indicated in the documents (current account before IBAN / change or due to IBAN standard);

  • Starting from August 5, 2019, until October 31, 2019:

 

accept documents for money transfers/credit to the payee’s account in line with details, the variation of which have been chosen by the payer;

submit a list of accounts under the IBAN standard (without clients’ applications) to the Pension Fund of Ukraine / social security authorities.

 

 

IBAN consists of 29 alphanumeric characters.

Starting from November 1, 2019, the use of the IBAN will be mandatory for clients of all Ukrainian banks when making funds transfers both in national and foreign currencies, including cross-border transfers. Thus, all transfers will only be made using the IBAN from November 1, 2019.