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FAQ on the International Bank Account Number (IBAN)
Question: What is IBAN?
Answer: IBAN is the acronym for ISO 13616 standard compliant
International Bank Account Number. IBAN is a unique customer account number
which can be used confidently in making or receiving payments (excluding cheques
and credit cards) within the country as well as abroad. The confidence comes
from two sources: the first is the internationally accepted standard for
numbering bank customer accounts and the second is the ISO standard methodology
for verifying the accuracy of the IBAN.
Question: Can you explain briefly the IBAN for UAE?
Answer: According to the ISO compliant IBAN Standard issued by
the Central Bank of UAE, all IBANs have a fixed length of 23 characters.
AE530220000100011122222
The First two characters reflect the country code which is
AE for your account.
CBI Bank code is
022 which is also part of the IBAN.
We will be advising all our customers by letters in Arabic and
English about their individual IBAN numbers.
Question: What is the difference between an IBAN and a normal
account number?
Answer: An IBAN can always be distinguished from a normal
customer account number by the following:
(a) Two letters at the beginning of the IBAN,
which refer to the country
code where the account resides;
(b) Two numbers (in the third and
fourth position of the IBAN), which
represent the check digit;
(c)
Three numbers (after the check digits) to identify the respective
bank
where the account is maintained with;
(d) The length of the IBAN is 23 characters.
AE530220000100011122222
Question: Why did the United Arab Emirates decide to introduce
IBAN?
Answer: The United Arab Emirates decided to implement IBAN to
increase efficiency of electronic fund transfers. The ISO IBAN Standard provides
a methodology for a bank initiating a payment to check the accuracy of the IBAN
of the recipient, regardless of the bank where the account is maintained.
Therefore, any electronic payment containing a valid IBAN could be credited
faster to the recipient’s account.
Having considered the benefits of IBAN in increasing the
efficiency of local and cross-border electronic payments, the Central Bank has
included IBAN as a project for further strengthening UAE’s status as the
regional financial centre.
Question: How would bank customers benefit from IBAN?
Answer: The main benefit of IBAN to the customer is the assurance of
making a payment to the correct account without delay. Since banks check the
accuracy of the IBAN at the point of initiating a payment, they can only make
the payments which carry the correct IBAN.
Question: Who requires an IBAN?
Answer: Bank customers, who receive or make electronic payments in
UAE or abroad, will require IBAN. If you have more than one account at your
bank, you will require an IBAN for each of your accounts.
Question: How can I get my IBAN?
Answer: Each of your account numbers will be converted into IBAN
format by the bank and will be communicated through a letter. Your Monthly
statement will carry the IBAN for easy reference.
You can always obtain your IBAN by visiting the CBI branch
nearest to you.
Question: For which transaction(s) can IBAN be used?
Answer: IBAN can be used for the following domestic and cross-border
payments:
·
Initiating an electronic payment to an account holder at a bank in the UAE;
·
Initiating an electronic payment where the usage of IBAN is compulsory;
·
Receiving an electronic payment from a person in a country that has adopted IBAN;
·
Receiving an electronic payment through an account of a person or company in the
UAE;
·
Receiving an electronic payment through a company in a country that has not
adopted IBAN.
Question: Does the existing account numbers become invalid with the introduction of IBAN?
Answer: No. Your existing account number will continue to be valid.
IBAN is not a new account number. It simply represents the existing account
number in an electronically recognizable ISO standard format. The adoption of
IBAN in UAE does not require changing or replacing the existing account numbers.
You will continue to use your existing account number for the transactions &
requests within the bank.
Question: Is the IBAN to be used only for international payments?
Answer: No. Customers have to use IBAN in making and receiving
international as well as domestic electronic payments.
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