On July 4, 2017, International Bank Account Number (IBAN) and Bank Identification Code (BIC) will be used by banks in non-cash settlements. It is stipulated by Resolutions of the Board of the National Bank of the Republic of Belarus No. 440 “On the Structure of the Account Number” (hereinafter – “Resolution No. 440”) dated July 27, 2015 and No. 472 “On Approving the Instructions on Procedures for Assigning Bank Identification Codes by the National Bank of the Republic of Belarus and Maintaining the Reference Book of Bank Identification Codes of Participants Carrying out Payments in the Territory of the Republic of Belarus” dated August 7, 2015.
Pursuant to Resolution No. 440 since July 4, 2017 Belarusian banks will be required to use the new account numbers in the settlements. The structure of the new account number is designed according to international standards ISO 13616:2007 “Financial Services. International Bank Account Number (IBAN)” and ISO 7064: 2003 “Information Technologies. Security Techniques. Check Character Systems”. At that, IBAN will be used both in the settlements within the country and for international settlements, which will have a favorable impact on the compatibility of different information banking systems and allow reducing the costs related to their maintenance and development. Determining the structure of the bank account number according to international standards will allow identifying the settlement participant in a unique manner and offer an opportunity to verify the accuracy of specifying the beneficiary’s account number in the payer’s bank prior to sending the payment, will accelerate the payment processing, make it possible to observe the principle of straight-through continuous processing, as well as reduce operational risks and costs when processing the payments.
IBAN has a fixed length of twenty-eight bits and the following structure:
AABB CCCC DDDD EEEE EEEE EEEE EEEE, where
This structure allows the bank preserving currently applied 13-digit account number in IBAN and in the framework of the additional bits to introduce other alphanumeric signs of identification of a customer, transaction, banking product, and the government authorities received an opportunity for additional codification of payments to the budget.
The new structure of the Bank Identification Code of the Republic of Belarus will meet the international standard ISO 9362:2014 and coincide with the structure of the BIC assigned by the Community for Worldwide Interbank Financial Telecommunications (hereinafter – the “SWIFT”). BIC in accordance with ISO 9362: 2014 consists of eight digits for the banks, the direct participants of the BISS1, and eleven digits for their branches as indirect participants of the BISS system. The use of such a bank identification code in the Republic of Belarus is a key factor to meet the requirements for unambiguous identification of a settlement participant.