Nikita Veremeev
31.08.2025 | 6 min read
Updated: 31.08.2025
In 2024, more than 80% of international companies face payment delays or returns due to incorrect bank details and incompatibility of invoice formats between countries. The loss of time and resources on manual payment processing, currency control, and compliance reaches tens of millions of euros annually, numbers that are hard to ignore. Why, despite digitalization, do international transactions still remain a risk and uncertainty zone for businesses? How to ensure transparency, speed, and security of cash flows in the EU, Asia, and Africa while maintaining flexibility and control?
The answer lies in standardization: specifically, in the use of the International Bank Account Number (IBAN, ISO 13616). This bank account identifier has become the foundation for modern EU payment systems and is now actively being introduced in Asia and Africa. For entrepreneurs and financial directors from Europe, Asia, and the CIS, many questions remain: how to obtain an IBAN for a legal entity, what requirements do banks in different countries have, how to integrate IBAN into corporate processes, and ensure compliance with AML/KYC?
In this article, I share the experience of the COREDO team: practical cases, strategic decisions, and recommendations that will help you not only understand the nuances of IBAN but also use it as a tool for business scaling, reducing operational risks, and optimizing international transactions. If you want to take your financial processes to a new level, read on.
What is IBAN in Simple Terms
What is IBAN in simple terms? This international bank account number serves as a universal identifier for sending and receiving money transfers between countries and banks. Below, we will discuss why IBAN is especially important for businesses and how it is used in practice.
IBAN for Business: Why is it Necessary?
International Bank Account Number (IBAN): a standardized bank account identifier developed under ISO 13616 to simplify and speed up international payments. Its primary task is to provide unambiguous identification of the account in any participating country, minimizing errors in international transfers and reducing operational costs for manual data processing.
The implementation of IBAN was a response to market demands: companies operating in multiple jurisdictions faced different account formats, complexities of validating details, and risks of payment returns. Standardization of bank accounts enabled interoperability between EU, Asia, and Africa payment systems, automated bank identification, and increased transaction transparency.
Thanks to the implementation of IBAN, processes have become more unified and transparent; let’s further explore its structure and typical examples across different regions.
IBAN: Structure and Examples by Region
The structure of IBAN always includes a country code (2 letters), check digits (2 digits), and the basic bank account number (BBAN), which may contain bank codes, branch codes, and the account number. The format of IBAN varies in length and structure depending on the country, which is important to consider for international transactions.
| Country |
IBAN Example |
Length |
Format Features |
| Germany |
DE89 3704 0044 0532 0130 00 |
22 |
Country code, bank, account |
| France |
FR76 1234 5678 9123 4567 8901 234 |
27 |
Bank code, branch, account |
| Belarus |
BY13 NBRB 3602 9110 0000 0000 0000 |
28 |
Bank code, account, check digits |
| Cyprus |
CY17 0020 0128 0000 0012 0052 7600 |
28 |
Bank code, branch, account |
| UAE |
AE07 0331 2345 6789 0123 456 |
23 |
Bank code, account |
| Singapore* |
SG58 UOBV 1234 5678 9012 34 |
19 |
IBAN implementation at pilot stage |
*In Asia and Africa, IBAN implementation is phased: pilot projects are already operational in Singapore, UAE, and Nigeria, and in several African countries, IBAN becomes mandatory for international transactions.
More details on how to check the correctness and relevance of IBAN in the next section.
Verify IBAN for Transfer
Errors in specifying the IBAN are one of the frequent reasons for payment delays and returns, especially in large transactions. To verify the accuracy of IBAN, validation algorithms (MOD-97) are used, as well as online services of banks and international payment systems.
At COREDO, we recommend integrating automatic IBAN verification at the stage of payment instructions and mass payments, reducing operational risks and speeding up
financial monitoring.
COREDO practice confirms: automating IBAN verification in corporate ERP systems reduces the number of payment returns by 70% and minimizes currency risks in international transfers.
How to Obtain IBAN for a Legal Entity in the EU, Asia, Africa
Obtaining IBAN for a legal entity is not just about opening an account, but a comprehensive procedure that includes compliance procedures, bank identification, and company verification according to
KYC and AML requirements.
Bank Requirements for an IBAN Account in the EU and Asia
In Europe, banks require a complete package of incorporation documents, confirmation of ownership structure, information about beneficiaries, and passing KYC/AML procedures. In Asia and Africa, requirements may be supplemented by local regulatory norms, such as mandatory local director presence or provision of a business plan for new companies.
COREDO’s experience shows that successful opening of an IBAN account in the EU is possible within 5–10 business days with correct document preparation and transparent business structure. In Singapore and UAE, the procedure may take up to 3 weeks, especially if financial licenses or registration of companies with foreign participation are involved.
How to Choose a Bank with IBAN for Account Opening
Choosing a bank to open an IBAN account depends on several factors: bank specialization (corporate accounts, fintech, international transactions), level of digitalization (availability of API, multibanking support), transactional fee rates, and compliance requirements.
The solution developed at COREDO for startups and holding structures includes analyzing bank ratings, assessing international payment processing speed, availability of ERP integration, and presence of SEPA/SWIFT payment support. For companies doing business in the EU, it is crucial to choose banks with direct access to SEPA and PSD2 support for payment automation.
IBAN for Startups and Offshore Companies
IBAN for startups in Europe is opened based on standard incorporation documents. Nevertheless, banks pay special attention to funding sources and the business model. For holding structures, it is important to ensure ownership transparency and compliance with international tax planning requirements.
IBAN restrictions for offshore companies are associated with heightened compliance requirements and possible restrictions on certain types of international transactions. COREDO’s practice shows that using multibanking and corporate financial platforms to diversify currency risks is advisable for such structures.
IBAN for International Payments: Advantages and Risks
IBAN for international payments is not just a formal requisite but a key element of modern financial interaction between countries. Its usage offers a range of benefits but is also associated with certain risks that are important to consider when dealing with international transfers.
Advantages of IBAN for International Payments
Using IBAN for international transactions ensures unambiguous account identification, speeds up transaction processing, and reduces the likelihood of errors. For legal entities, this means reduced time for payment processing, lowered transaction costs, and simplified financial reporting under the IBAN standard.
The COREDO team has implemented projects for automating mass payouts using IBAN and integrating banking APIs into clients’ ERP systems. The result is a 40% reduction in payment processing time and increased transparency for tax and regulatory authorities.
IBAN, SWIFT, or SEPA, What to Choose?
IBAN is an account identifier used for international payments. SWIFT code (BIC) is a bank identifier required for interbank transfers outside the SEPA area. SEPA (Single Euro Payments Area) is an EU payment system where IBAN is a mandatory requisite for all euro payments.
For companies operating in Europe, the optimal choice is the IBAN+SEPA combination for internal and cross-border euro transfers, and for transactions with Asia and Africa, IBAN+SWIFT. COREDO practice confirms: the right combination of these tools allows reducing the cost of international transfers and speeding up settlements with counterparties.
Errors and Delays in Transfers via IBAN
The main risks associated with using IBAN are errors in specifying the account number, format discrepancies with the recipient country’s requirements, and the absence of automated detail verification. Such errors lead to returns, payment blocks, and additional transaction fees.
COREDO’s recommendation: integrate automated IBAN validation into payment gateways and corporate financial platforms, and regularly update IBAN format directories by country to minimize operational risks.
IBAN and AML/KYC: How to Pass the Check
IBAN plays a key role in ensuring compliance: it allows automating bank identification, simplifies financial monitoring, and provides transparency of cash flows for international regulators (FATF, EBA).
COREDO’s experience shows that integrating IBAN with KYC/AML procedures reduces financial fraud risks and facilitates passing checks for international investments and cross-border transfers.
IBAN Integration for Business and Mass Payments
IBAN integration for business and mass payments opens new possibilities for efficient international payments and automation of financial processes. Using IBAN enables companies to speed up transfers, minimize errors, and ensure uninterrupted payouts to contractors and employees worldwide. Let’s examine how IBAN addresses key challenges for international business and mass payments.
IBAN for International Business
IBAN facilitates business scaling in new markets: a single bank account format simplifies opening accounts in different countries, integration with international payment systems, and conducting intra-corporate transfers. For holding structures and venture funds, this is especially relevant for managing multi-currency accounts and structuring international investments.
The COREDO team has implemented cases where IBAN deployment allowed clients to speed up market entry in the EU and Asia, reduce costs on currency conversions, and simplify integration with blockchain platforms for account identification.
IBAN and Tax Optimization
IBAN contributes to tax transparency and simplifies financial reporting under the IBAN standard: all transactions are recorded in a single format, facilitating interaction with tax and regulatory authorities. For companies engaged in international tax planning, this allows optimizing the payment structure and reducing the risk of double taxation.
COREDO practice: integration of IBAN with corporate ERP systems and treasury automation enables companies to quickly prepare reports for auditors and regulators and control compliance with PSD2 and other EU directives.
IBAN in International Trade and Investment
In international trade, IBAN is used to automate payments with suppliers and clients, mass payouts, and integration with electronic payment tools. For startups and venture financing, IBAN becomes a key element in structuring investment deals and managing corporate accounts.
One of COREDO’s cases: for a tech startup entering EU and Asia markets, IBAN integration with payment gateways and multibanking was implemented, which allowed automating mass payouts and accelerating receipt of investments from international funds.
IBAN Errors and Questions
How to verify the correctness of an IBAN for international transfers?
Use online services of banks and international payment systems, as well as automated IBAN validation tools in ERP systems.
What are the requirements for IBAN for companies in Europe and Asia?
In the EU – mandatory passing of KYC/AML, provision of incorporation documents, a transparent ownership structure. In Asia and Africa, requirements may include local presence and additional licenses.
What are the risks associated with errors in IBAN?
Errors lead to payment returns, blocks, additional fees, and settlement delays.
How does IBAN help meet AML and compliance requirements?
IBAN automates bank identification, facilitates financial monitoring, and ensures transparency for regulators.
What are the features of IBAN for startups and holdings?
For startups: emphasis on funding sources, for holdings: ownership transparency and compliance with international tax planning standards.
Practical Tips for Business
- Prepare company incorporation documents
- Complete KYC/AML procedures at the chosen bank
- Open a corporate account with IBAN
- Verify the accuracy of IBAN through online services or ERP
- Integrate IBAN into corporate ERP/financial system
- Set up automation for mass payments and reporting
- Regularly update country IBAN format directories
- Ensure compliance with FATF, EBA, and local regulator requirements
Conclusions and Insights for Business
IBAN is not just an international account number but a strategic tool for optimizing transactions, automating financial processes, and ensuring compliance in international business. Its implementation allows minimizing operational risks, increasing transparency for regulators, and simplifying business scaling in new markets.
COREDO’s experience confirms: proper integration of IBAN into business processes is the key to effective international transactions, transparent reporting, and sustainable company growth in a global economy.
