IBAN stands for International Bank Account Number and the concept was developed by the European Committee for Banking Standards (ECBS) and the International Standards Organization (ISO) and is an internationally agreed standard (ISO 13616: 2003).
It was created as a viable and practical international bank account identifier, used internationally to uniquely identify the account of a customer at a financial institution, to assist error-free cross-border payments and to improve the potential for payments STP.
Albanian banks are legally required to provide their customers with an IBAN for each bank account starting from June 1, 2009 based on Bank of Albania decision No.42 that has approved the Regulation ‘’On the structure and the use of the International Bank Account Number (IBAN).
What is a KIB?
The KIB or Bank Identifier Code is a unique address, which, in payment messages, identifies precisely the bank – branch involved in financial transactions. When used in conjunction with the IBAN it identifies the bank - branch at which the account is held.
Where would I find out the IBANs/KIBs of my own accounts?
Your IBAN and KIB are printed on your bank statement. You can also request them at your bank, which will be delighted to assist you.
Why are they Important?
IBAN is the standard format for bank account numbers in cross border payments within Europe. KIB allows for easy identification of the beneficiary bank. From January 1st 2010 all payments in Albania, through Albanian Banks are required to precede their payments using IBAN numbers.
Does the IBAN replace my existing account numbers?
No, your IBAN does not replace your existing account number. It is important to remember that IBAN is not a new account number, but simply a new format for an existing account number that will be recognized internationally.
Who will need to use IBAN / KIB?
All companies and individuals making or receiving payments in Albania and Europe will need to use the new mandatory pan-European banking codes (IBAN / KIB) from January 1st 2010. There might be the risk of payments delay if this change is not adopted.
Those who make payments will be required to provide the KIB and IBAN of the beneficiary on their payment instructions. Receivers of payments will need to provide their IBAN and KIB to those who make payments to them.
Why is this change being made?
It is Bank of Albania’s decision No. 42, Dt. 16.07.2008, which approved the Regulation ‘’on the structure and the use of the International Bank Account Number (IBAN).
This is due to the fact that national payment standards in Albania are not compatible and costly manual intervention is necessary to be completed by the Banks. The banks could only offer such a service if payments could be processed efficiently; therefore the development of the IBAN and KIB standard will support the banks.
Can you use IBAN/KIB for payments all around the world or is it just Albania & Europe?
Yes, you are asked to use you IBAN number for all payments in/outside Albania. While the IBAN concept was developed as an account number standard to facilitate the creation of the SEPA, (Single Euro Payment Area).Other countries have also adopted the IBAN standard.
Will I still be able to receive payments from abroad to my account number?
Staring from January 1, 2010, all Banks in Albania will require the IBAN and KIB details to execute payments. Payments from outside Europe may continue to be received with the account number; however, it is recommended that your IBAN and KIB detail to be provided to your payers worldwide.
It is important to remember that IBAN is not a new account number, but simply a new format for an existing account number that will be recognized internationally.
An IBAN contains additional characters in front of the country’s normal domestic account number. These characters consist of a 2-letters country code (AL is the Albanian country code), followed by a 2-digits check number. Therefore, your IBAN will incorporate your account number. However, if you do not provide your full IBAN / KIB for payments within Albania you run the risk of delays in receiving payments.
If I receive payments, is there any recommendation for me, to ensure no interruption to any inbound transfers to my account?
To ensure that your payments reach your account on time, receivers of payments, coming from abroad, will need to provide their IBAN and KIB to those who make payments. This can be achieved easily and without fuss by ensuring that your IBAN is clearly printed on all invoices issued.
What happens if I don’t use the IBAN and KIB?
If you do not use IBAN and KIB by of January 1st 2010, outgoing payments will be charged or not be accepted by Albanian banks.
Updated: May 2009
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