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:
http://www.bpfi.ie/customer-assist/business-customers/bic-iban-information/ (end of page)
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.
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All the best,
The Team at Jefferson