IBAN

IBAN and its history

Since 1996 in Hungary domestic remittances use standardised 16 or 24-digit complex individual account numbers that - in addition to unambiguously identifying the account managing bank and the account-holding customer - enable quick, automated and cheap management of domestic payments.

The European Committee for Banking Standards (ECBS) introduced international bank account numbers (IBAN) for the countries of the European Union for similar purposes. In accordance with NBH Decree 9/2001 (MK 147), since 1st January 2003 Hungarian financial institutions must use IBAN format account numbers.

What is the advantage of the IBAN?

Introduction of IBAN enables the consolidation of the management of foreign bank account numbers in the applying countries. Remittances could be processed automatically, meanwhile, thanks to the elimination of human intervention, work procedures become simpler, quicker and more reliable.

The Hungarian IBAN standards

The IBAN that complies with the Hungarian standards is made up of 28 digits: the first and second digit is always "HU" i.e. Hungary's standardised country code; third and fourth digits are for the control code and the remaining digits - from the 5th to the 28th - show the complex individual account identifier of the client.

IBAN is fragmented differently if used on paper or in electronic environment, e.g.

on paper, groups of four digits are printed out:

IBAN HU99 5888 9999 3456 6789 1234 6789

whilst the electronic form of the IBAN account number given above as an example (without "IBAN" fore-tag) is:

HU99588899993456678912346789

The help function served by our Bank for checking the appropriateness of IBAN numbers

If you are not sure about the correctness of your own IBAN or the account numbers you received from your partners in IBAN-form, the following control formula can help you to check whether or not the IBAN numbers you intend to use are syntactically correct. (It cannot be checked whether a given series of digits really exists, but you can check whether an international bank account number was properly generated in terms of syntax and validity.)

Please enter the IBAN number as you know it in the following field for checking:

If you enter here your existing complex individual account identifier with Raiffeisen Bank, the generator function will help you to create your own IBAN. Please enter your 24-digit account number with Raiffeisen Bank.

What could happen if you use improper IBAN in FX remittance transactions?

The use of IBAN format - i.e. advising your foreign partners on your IBAN and to be aware of their IBAN - is of vital importance. Our Bank checks all FX account numbers received either on paperbased or electronically. We will process and settle without delay any orders even if showing erroneous account number, since we intend to execute your orders as soon as possible.

If you indicate the beneficiary's account number in improper or non-IBAN format on your FX remittance orders addressed to a European country that applies IBAN, the beneficiary's bank may charge an extra fee with reference to additional expenses incurred due to the failure of automatic processing. We will charge these fees to our clients in addition to the normal FX remittance fees. (According to our experiences extra fees vary with banks, and is approximately between EUR 5 and 20.)

In accordance with Regulation 2560/2001/EC, the European Payments Council (EPC) has allowed-in view for a uniform practice within the European Union, as well as to facilitate automatic processing-that as of 1st January 2007 banks receiving cross-border payments in euros directed into the countries of the European Union-as well as into Switzerland, Norway, Iceland and Liechtenstein-may reject payment orders not furnished with IBAN and SWIFT (BIC) codes, or filled unsatisfactorily, or fulfill such payment orders against extra charges.

Order forms filled improperly or incompletely shall be fulfilled at Raiffeisen Bank in accordance with the terms specified in the Bank's List of Terms & Conditions [Kondíciós Lista] from time to time in effect.

What Is SWIFT (BIC) Code?

It is an individual address in the telecommunications message that exactly identifies the financial institution involved in the transaction.

How to Avoid Extra Charges, or the Rejection of Your Order?

In order to make sure that your foreign currency and cross-border payment orders are fulfilled without any extra charge imposed, please pay attention to filling order forms properly. This guide has been designed to help you in this.

Before giving your order, please obtain the following information from the beneficiary (recipient) of the order:

• the international bank account number (IBAN) of the beneficiary,
• the name of his or her bank, and
• the bank's SWIFT (BIC) code.

When filling the order form, please make sure that the following fields and data are used properly:

The SWIFT (BIC) code of the beneficiary's bank: Please write in each case the SWIFT (BIC) code of the beneficiary's bank in the "bank of beneficiary" field.

• The SWIFT (BIC) code consists of 8 or 11 characters, and always identifies the beneficiary's bank beyond doubt.
• If the beneficiary of the payment order is also a customer of Raiffeisen Bank Hungary, you should enter our bank's SWIFT code in the appropriate field: UBRTHUHB.

The account number of the beneficiary:

If the payment is directed into a country that uses international bank account numbers (IBAN), please use the IBAN, and enter it in the field "account number of beneficiary" only.

• The member states of the European Union (as well as Switzerland, Norway, Iceland and Liechtenstein) already use the international (IBAN) format for account numbers.
• The IBAN always starts with the 2-letter ISO country code of the given country (e.g. DE, AT, CZ).

Which European countries apply IBAN?

If you click on the following links you may view the lists of those European countries that apply IBAN, as well as the IBAN formats they apply.

European countries applying IBAN

Is there any change in the FX remittance process in the countries that do not apply IBAN?

In those countries that do not apply IBAN - i.e. in all countries that are not featured in the above list - your remittances will be managed in the usual manner.