IBAN - New Bank Account Number

WHAT IS THE IBAN?

The IBAN (International Bank Account Number) is a customer account number with banks and other financial institutions, issued in compliance with an international standard. By mid-2003, the IBAN was implemented in 32 European countries and their territories.

WHAT IS THE LATVIAN IBAN?

A uniform bank account number standard will be implemented in Latvia. In all banks and financial institutions, customer account numbers will be issued in accordance with the same principle both for domestic and cross-border payments. They will be recognised everywhere in Europe. "Regulation for Use of the IBAN", issued by the Bank of Latvia, regulates the implementation and use of the Latvian IBAN in the Republic of Latvia.

WHAT IS THE STRUCTURE OF THE LATVIAN IBAN?

New characters will be add to the existing customer account number, placing the Latvian country code "LV", two check digits and the first four letters of the Bank Identifier Code (BIC) before it. When specifying the IBAN in printed payment documents, it is advisable to separate every four characters by inserting a space (see the example).

LV84 LACB 0000 4351 9500 1

LV – country code

84 – check digits

LACB – Bank Identifier Code (BIC)

0000 4351 9500 0 – customer account number

WHAT IS THE PURPOSE OF THE LATVIAN IBAN?

Accepting a payment, the bank, with the help of the check digits, will be able to check whether the indicated beneficiary's account number is correct (including cases when the beneficiary is a customer of another bank).

The risk of a payment bieng delayed or even rejected because of any inaccuracy in other banking details will be reduced, as funds will be credited to the beneficiary's account on the basis of the IBAN only.

After Latvia has joined the Europaean Union, banks in Latvia as well as in other european countries will be in a position to levy additional charges for transfers in euros, if the beneficiary's IBAN has not been specified.

WHEN WILL THE LATVIAN IBAN BE INTRODUCED?

From January 1, 2004 to January 1, 2005, all banks will issue Latvian IBANs to their customers.

As of January 1, 2004, banks will calidate the beneficiary's Latvian IBAN indicated in payment documents.

As of January 1, 2005, upon making domestic payments, the only valid customer account number will be the Latvian IBAN.

WHAT SHOULD A CUSTOMER DO?

To obtain your new bank account number (the Latvian IBAN), please, contact your bank.

Indicate your Latvian IBAN as your account number in your banking details and on invoices.

Notify your business partners of the IBAN, your bank account number provided by your bank.

Ask your business partners to provide you with their IBAN.

Upon accepting a payment document, your bank will help to check whether the beneficiary's IBAN specified in it corresponds to the IBAN structure of the respective country.

EXAMPLES OF IBANS OF SOME EUROPEAN COUNTRIES

Information about IBAN in PDF format here