Tuesday 24th November, 2015

From 1st Feb 2016, making a cross border payment will be easier as banks need less information from consumers and businesses – an IBAN (International Bank Account Number) will only be required. Currently a BIC (Bank Identifier Code) is also required to help the bank identify an account when making SEPA transactions.

This move, was driven by the European Parliament SEPA regulation - Article 5(7), will bring the UK in-line with the Eurozone countries that use this internationally recognised standard format. It will also increase efficiency and reduce the instances of payment errors, as more payments can be made without the need for manual intervention through the use of Straight Through Processing. Although some banks may still require the BIC number to correctly route the payment. 

Maurice Cleaves, Chief Executive of Payments UK said:

"The move to SEPA IBAN-Only (SEPAIO) is significant as it constitutes the first change in decades to how international payments are processed. As the organisation focused on delivering world class payments, Payments UK is proud to be leading the way. Our system in the UK offers one of the most comprehensive and sophisticated solutions, and it will help ensure the correct routing data is identified."

"Efficiency in payments is a key priority of ours, and by adopting the new SEPA standards, not only will those receiving payments in the UK benefit from a more streamlined system, but this simplification also has the potential to attract and encourage more European business."