IBAN (International Bank Account Number)
Standardized account number format used in international wire transfers, especially in Europe.
Definition
IBAN is a standardized account number format (up to 34 characters) used for international wire transfers, primarily in Europe and some other regions. Combines country code, check digits, and bank-specific account information.
Context
Required for wires to/from European accounts. US accounts do not use IBAN; use SWIFT plus account number.
Example
A Delaware LLC receives a wire from a European client. The client needs the LLC bank info (no IBAN since US-based); the LLC needs the client IBAN for return transactions.
Common pitfalls
- US accounts do not have IBANs.
- IBAN format varies by country (length, check digits).