What is an IBAN? A Guide to International Bank Numbers

The structure of an IBAN consists of a country code (2 letters) followed by a check digit (2 digits) and then up to 30 alphanumeric characters representing the bank identifier, branch code, and account number. Specifically, an IBAN is composed of:

< >
• Country Code: Two letters identifying the country where the bank account is located (e.g., CY for Cyprus, GB for Great Britain).
< >
• Check Digits: Two digits used to verify the integrity of the IBAN and detect errors in transcription.
< >
• Bank Identifier: A unique code for the bank.
< >
• Branch Code: Identifies the specific branch of the bank.
< >
• Account Number: The individual bank account number.

To better understand, consider a hypothetical IBAN example from a bank in the Republic of Cyprus (note that real IBANs do not have spaces; spaces in the image are for readability only):

IBAN Number: CY45002003579876543210987654

In this example:

CY is the ISO country code for the Republic of Cyprus.

< >
• 45 is the check digit.
< >
• 002 is the bank code.
< >
• 00357 is the branch code.
< >
• The last 16 digits are the account number.

Functions of the IBAN Code: Streamlining International Transfers

Many might wonder why the IBAN code is necessary. In Vietnam, for instance, many families send their children to study in Europe. When parents send money to their children, or friends transfer money to each other between European countries, they must comply with SEPA (Single Euro Payments Area) regulations. In such cases, users only need to remember the IBAN code for transfers to avoid complications and errors.

When you make international transfers or payments between banks within Europe, the IBAN is an indispensable piece of information. It has three main functions:

< >
• Identifies the country where the funds will be transferred.
< >
• Identifies the recipient's account number in that country.
< >
• Verifies the accuracy of the provided information.

IBAN helps simplify and minimize errors in international bank transfers and other financial transactions.

Cases Where IBAN is Required for Money Transfers: A Practical Guide

The IBAN number is only necessary when you transfer money from Vietnam to European countries. Conversely, when transferring money from Europe to Vietnam, you can transfer via services like Western Union without needing an IBAN code. When transferring money from Vietnam to European countries, the sender needs three pieces of information about the recipient:

< >
• Recipient's full name
< >
• Recipient's IBAN number
< >
• Recipient bank's SWIFT/BIC code (this part is not strictly essential but serves for cross-referencing and verification).

Distinguishing IBAN from BIC/SWIFT Codes: A Clear Comparison

SWIFT: Society for Worldwide Interbank Financial Telecommunication. A SWIFT code is an identification code used to identify financial organizations or banks worldwide, through which the country, location, and operational status of that bank can be determined. Currently, SWIFT codes are widely used for international money transfers and receipts.

BIC: Bank Identifier Code. Functionally, these two codes are the same; both are international bank codes. In other words: BIC code = SWIFT code.

Structure of SWIFT/BIC Code

SWIFT/BIC codes come in two formats: 8 characters or 11 characters. In which:

< >
• First 4 characters: Identify the bank name.
< >
• Next 2 characters: Country code.
< >
• Next 2 characters: Local code (province/state).
< >
• Last 3 characters: Bank branch code.

SWIFT/BIC codes are used when you need to receive money from abroad sent by friends or relatives. The information required to receive money includes:

< >
• SWIFT/BIC code
< >
• Your account number
< >
• Your full name (for verification if necessary)

Thus, an IBAN displays the country, bank, branch, and account number, whereas a BIC/SWIFT code does not display the specific account number. The United States and Vietnam currently do not use IBANs but only SWIFT for international transactions.

Before IBAN and SWIFT codes became widely used in international money transfers, payments between countries and continents were frequently prone to errors and confusion, causing difficulties and inconvenience for those involved and incurring additional costs to rectify mistakes. Therefore, the IBAN number and SWIFT code were introduced to simplify transactions and minimize errors.

Table of Country Codes and Simulated IBAN Numbers for Some European Countries

The table below will help you visualize the IBAN codes of European countries and the length of the IBAN code by the number of characters, which you can cross-reference when needed:

Country

Country Code

Number of Characters

Simulated IBAN

Albania

AL

28

AL35202111090000000001234567

United Kingdom

GB

22

GB33BUKB20201555555555

Austria

AT

20

AT483200000012345864

Poland

PL

28

PL10105000997603123456789123

Portugal

PT

25

PT50002700000001234567833

Brazil

BR

29

BR1500000000000010932840814P2

Bulgaria

BG

22

BG18RZBB91550123456789

Czech Republic

CZ

24

CZ5508000000001234567899

Cyprus

CY

28

CY21002001950000357001234567

Slovak Republic

SK

24

SK8975000000000012345671

Italy

IT

27

IT60X0542811101000000123456

Denmark

DK

18

DK9520000123456789

Germany

DE

22

DE75512108001245126199

Guatemala

GT

28

GT20AGRO00000000001234567890

Netherlands

NL

18

NL02ABNA0123456789

Hungary

HU

28

HU93116000060000000012345676

Greece

GR

27

GR9608100010000001234567890

Iceland

IS

26

IS750001121234563108962099

Ireland

IE

22

IE64IRCE92050112345678

Kosovo

XK

20

XK05121012345678906

Latvia

LV

21

LV97HABA0012345678910

Liechtenstein

LI

21

LI7408806123456789012

Lithuania

LT

20

LT601010012345678901

Luxembourg

LU

20

LU120010001234567891

Malta

MT

31

MT31MALT0110000000000000000123

Moldova

MD

24

MD21EX000000000001234567

Monaco

MC

27

MC5810096180790123456789085

Norway

NO

15

NO8330001234567

France

FR

27

FR7630006000011234567890189

Finland

FI

18

FI1410093000123458

British Virgin Islands

VG

24

VG21PACG0000000123456789

San Marino

SM

27

SM76P0854009812123456789123

Spain

ES

24

ES7921000813610123456789

Sweden

SE

24

SE7280000810340009783242

Switzerland

CH

21

CH5604835012345678009

Ukraine

UA

29

UA903052992990004149123456789

Do Banks in Vietnam Have IBAN Codes? Understanding IBAN Usage in Vietnam

When transferring money from Europe to Vietnam, you cannot use an IBAN code. Instead, you only need the recipient bank's SWIFT/BIC code, the recipient's account number, and the recipient bank's name and address. Banks in Vietnam do not use IBAN codes, including major banks like VietcomBank, BIDV, Techcombank, or ACB.

However, Vietinbank has a branch in Germany, so Vietnamese students studying in Germany can use an IBAN for payments and transactions within Germany and Europe. You can find Vietinbank's IBAN code on the front of the Vietinbank card specifically designed for students in Germany (starting with the characters DE).

Frequently Asked Questions about IBAN: Your Quick Reference Guide

Where can I find my IBAN?

Typically, when you register for an account, your IBAN is sent to you in your account statement. You can also view it in your account on the website when using online banking.

Is a BIC/SWIFT code needed for transfers within Europe?

No, you only need the IBAN code. What if I lose my bank card, how do I get my IBAN? If you are registered for internet banking, you can log in to your account to view your IBAN, BIC, or SWIFT number. If you have not registered for online banking, you will need to visit a bank branch to inquire. Remember to ask the bank to block your card to ensure account security!

We hope the information provided by XAUXI helps you understand what an IBAN is and the differences between IBAN and BIC/SWIFT codes. The IBAN number is essential when transferring money to European countries; outside this region, a BIC code/SWIFT code is sufficient.