On 5 August 2019, international bank account number (IBAN)[1] will be introduced in Ukraine in line with ISO 13616.
Considering the comprehensive nature of implementation measures for this international standard, the National Bank of Ukraine (NBU) would like to remind banks and bank customers on the specifics of this process.
Deadline and dates
As of 5 August 2019, banks will open new customer accounts in line with IBAN.
At the same time, banks will change existing account numbers according to the standard, while maintaining the existing numbers for sub-ledger accounting.
As of 1 November 2019, IBAN will become mandatory for all Ukrainian banks for money transfers in domestic and foreign currencies, including cross-border transfers. This means that all transfers will be made using IBAN effective 1 November 2019.
Please note that all payment cards banks issued on customer accounts will remain valid and remain payment instruments that a customer can use to transfer funds from the bank account using a payment device.
IBAN structure
Ukrainian banks open new accounts to customers only according to IBAN, account numbers will consist of 29 alphanumeric characters in the following sequence:
Ukraine code: UA two letters
check digit: two digits
bank code: six digits
account: account number length is not fixed (before 31 October 2019 – from 5 to 14 symbols, as of 1 November 2019 – from 5 to 19 symbols).
Filling out payment details
As of 5 August 2019 and until 31 October 2019, documents on fund transfers may contain any option of payment details such as Bank Code and Account Number.
Payment details in money transfer documents may contain either the account number and bank code of a payer/payee or IBAN of a payer/payee. When payment details contain the IBAN account number, a zero is recorded in the field for Bank code of a payer/payee.
The payer’s bank is committed to accept the document on money transfer with the payment details option chosen by the payer.
The receiving bank is committed to credit funds to the payee’s account:
according to two payment details (Bank Code and Account Number, if the account has no assigned IBAN or the payer does not know the account’s IBAN) or
according to IBAN.
The payment details option selected by the payer cannot be used as an excuse to return the document for fund transfer or refuse to credit funds to the customer’s account.
From 5 August 2019 to 31 October 2019, NBU System of Electronic Payments will ensure interbank fund transfers regardless of the payment details option.
IBAN advantages
IBAN will harmonize the Ukrainian payment landscape with the European one and contribute to the further planned upgrade of NBU System of Electronic Payments. In general, the use of IBAN standard with fewer payment details is aimed to simplify drafting of payment documents.
This will allow bank customers to:
● identify the payer and the receiver of funds as well as their servicing Ukrainian bank in an easy and convenient way
● avoid mistakes in bank account details thanks to fewer details in the payment documents
● make and receive transfers faster.
Among other benefits for bank customers, the NBU intends to implement the standard for making payments using QR codes for payment market participants. QR codes containing IBAN details will simplify the payment of invoices and the exchange of payment information.
Contact us
As needed, bank customers can refer to the Memo prepared by the NBU on introduction of IBAN.
Also, if you have any questions on IBAN and its use for fund transfers, please refer to the NBU by calling (044) 230-19-76 or by e-mail: [email protected]
[1] Respective provisions are detailed in NBU Board Resolution No. 162 On Implementation of the International Bank Account Number (IBAN) in Ukraine dated 28 January 2018 (as amended).