If your account is housed at PNC in the U.S. and you are making a payment to a supplier who owns an account at a financial institution located in the European Economic Area, then you are not obligated to supply an IBAN as part of the remittance information of the wire transfer. However, asking your beneficiary for their IBAN and using it in your funds transfer instruction will help to avoid posting delays or delays in notification of receipt at the receiving financial institution.
The following set of Frequently Asked Questions is designed to:
Q. What is an IBAN? Q. Why was the IBAN introduced? Q. When is an IBAN used? Q. Who will be required to use IBANs? Q. Will IBANs be issued in the United States? If you would like further information regarding IBANs, please visit the following resources:
A. IBAN stands for International Bank Account Number. It is assigned to account owners of banks within the European Union and serves as an account identifier. The IBAN identifies a beneficiary's bank account and includes specific information the receiving bank will use to automatically apply funds. The IBAN is used exclusively within the European Economic Area. All banks within this region have been mandated to assign and issue an IBAN to uniquely identify their respective clients. This is being driven by the larger objective of the Single European Payment Area (SEPA) to address cross-border payments in the European Union. Banks outside of the European Union have not adopted this standard and are not obligated to issue IBAN numbers to their clients.
A. The IBAN was conceived by the European Committee for Banking Standards and introduced to increase the rate of straight-through processing (STP) and lower the cost of financial messages and transactions between financial institutions within the European Union in order to:
A. An IBAN is used to identify a beneficiary of a payment where the beneficiary's account is housed at a financial institution within the European Economic Area. It is used in combination with the European Bank's SWIFT Bank Identifier Code (BIC) to properly route and apply funds.
An IBAN must be supplied when the following payment conditions apply:
A. The requirement is mandated for payment origination that is cross border in the European Economic Area. Payments originating outside this region, in areas such as North America or Asia, are not mandated to include an IBAN.
A. Account owners of U.S. Dollar denominated or Multicurrency Demand Deposit Accounts domiciled within the U.S. will not be assigned an IBAN as they are not assigned nor required outside of the European Union.
While not required, it is recommended that you provide an IBAN, along with your payment instructions, to PNC when making payments into Europe from your PNC Account. The IBAN may be supplied by your counter party for example on an invoice.
Q. Why was the IBAN introduced?
Q. When is an IBAN used?
Q. Who will be required to use IBANs?
Q. Will IBANs be issued in the United States?
If you would like further information regarding IBANs, please visit the following resources: