BIC Derivation – ‘IBAN only’ rule
An EU regulation relating to SEPA states that you will only require an IBAN from February 1, 2016 to pay a beneficiary. This applies to the Euro-zone from February 1 and will be mandatory in other SEPA areas from November 1, 2016.
The obligation will now be on the banks to derive a beneficiary’s BIC from the supplied IBAN.
Software changes will be required on the SEPA-format file generated by payroll systems to handle this. Basically, the SEPA-compliant file will show the wording “NOTPROVIDED” in lieu of a BIC.
Where a BIC is already on file for someone then it will continue to be shown on the bank submission as at present. A Google search on “IBAN-only rule” will throw up a lot of information on the regulation but you can get some useful information at:
Please note this document will be updated by BPFI on a monthly basis with any additional BIC rules. It is the responsibility of the user to ensure they are referring to the most up to date version.
All the best,
The Team at Jefferson