Payments UK announces directory to support IBAN-only payments
by Kylene Casanova
It will be easier to make cross-border payments from consumers and businesses as of 1 February 2016 in the UK. From that date, customers making SEPA transactions will just need their IBAN (international bank account number), rather than both IBAN and bank identifier code (BIC).
According to Payments UK, this will bring the UK in line with Eurozone countries that use IBANs and will also increase efficiency and reduce the instances of payment errors. But the UK payments association adds that some banks may still require a customer's BIC to route the payment correctly. To ensure that the UK is in compliance with EU legislation, Payments UK has developed the 'SEPA IBAN-Only directory', together with Swift and in liaison with the Bank of England and the Financial Conduct Authority.
The chief executive of Payments UK, Maurice Cleaves, said that the move to 'IBAN only' is significant because “it constitutes the first change in decades to how international payments are processed... 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.” He added that by adopting the Single Euro Payment Area (SEPA) standards, the UK would potentially be able to attract and encourage more European business.
Payments UK will announce more about the SEPA IBAN-Only directory in due course.
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