Moldovan banks introduce IBAN code

Starting January 2013, the Moldovan banking system will implement the IBAN (International Bank Account Number) code upon cross-border transfers. According to a communique from the National Bank of Moldova (BNM), leveling up to the modern standards will improve the efficiency of this sector of the financial market, offering safety and economic advantages, reports Info-Prim Neo. The IBAN code is a component of the automatic processing mechanism for transfers and represents a string of characters that uniquely identify, at an international level, the account of a client with a financial institution, through the acknowledgement by any banking system operating within the SWIFT network. Using the IBAN code in the activity of licensed Moldovan banks is a provision of the last amendments and addendums to the Regulation on credit transfer, recently approved by the BNM Administration Council. The new provisions reveal the method of generating IBANs, as well as their structuring and verification, along with other afferent aspects. Implementing the IBAN standard will benefit several aspects of making international transfers. The automatic verification of data will allow the minimizing of errors in their transmission. Additionally, the automatic validation of info on the beneficiary account, through the IBAN, will reduce the processing time, says the BNM communique.