The usage of IBAN in our country has been decided for improving identification of bank customers in electronic payment sphere, facilitating automated processes in support of straight through processing (STP) in settlements and removing differences in the structure of bank accounts used at present.
The Working Group consisting of representatives of the Central Bank, the Ministry of Taxes, the Ministry of Finance, the State Social Protection Fund, Azerbaijan Banking Assosiation and commercial banks (International Bank, Kapital Bank, Unibank, Bank Republic and Muganbank) was established for implementation of this measure on 17 June, 2010.
Frequently asked questions in relation to application and usage of International Bank Account Number (IBAN)
1. What is IBAN? It is standart bank account number given to customers by banks, national operator of post communication, rendering post-financial services, and the State Treasury Agency of Ministry of Finance (hereinafter – financial institutions), created in accordance with ISO 13616 international standard defined by the European Committee for Banking Standards and International Organization for Standardization.
2. What is IBAN structure in the Republic of Azerbaijan? IBAN structure in the Republic of Azerbaijan is as follows:
3. What are advantages of IBAN? IBAN will allow to reduce the operation risks with verifying accuracy of customer’s bank account number of payee bank in payer bank, to speed up delivering funds to the end user during interbank settlements and to facilitate automated processes in support of straight through processing (STP) in settlements.
4. What kind of accounts will be IBAN applied? IBAN should be applied to all bank accounts used in the domestic and international interbank settlements. The financial institutions may use IBAN for other accounts depending on their internal policies.
5. Is it allowed to use old account numbers after adopting IBAN? After completion of transition to IBAN (3 September, 2012), payment documents containing old account number will not be accepted by the financial institutions.
6. When will be the usage of IBAN started? IBAN will be used from 1 February, 2012.7. What should the financial institutions do during IBAN transition period? The financial institutions should perform the following actions in relation to transition to IBAN:
8. What should customers do during IBAN transition period? Customers should perform the following actions in relation to transition to IBAN: • informing their partners about account numbers with IBAN structure; • using only account numbers with IBAN structure from the required date.
9. Does the usage of IBAN require additional expenses for customers? Customers having bank accounts in relation to the usage of IBAN aren’t charged an additional service fee.