IBAN Discrimination

On 1 August 2014 the SEPA Regulation came into effect for all payment service providers (PSPs) in the EU.  Under the SEPA Regulation, it is illegal for PSPs to discriminate between domestic International Bank Account Numbers (IBANs) and IBANs in any other EU Member State, when making payments. The legislation governing these matters is contained in EU Regulation 260/2012 (the 'SEPA Regulation'). Also relevant in this regard is Statutory Instrument No. 132 of 2013, which gave effect to the SEPA Regulation in Ireland.

Read the documents in full below:

• EU Regulation 260/2012 (the 'SEPA Regulation')
• Statutory Instrument No. 132 of 2013

The sections of Regulation 260/2012 which are particularly relevant to IBAN discrimination are Articles 3.1, 3.2, 3.3, 9.1 and 9.2 which read as follows:

Article 3 - Reachability

1. A payee’s PSP [i.e., payment services provider - generally a bank] which is reachable for a national credit transfer under a payment scheme shall be reachable, in accordance with the rules of a Union-wide payment scheme, for credit transfers initiated by a payer through a PSP located in any Member State.
2. A payer’s PSP which is reachable for a national direct debit under a payment scheme shall be reachable, in accordance with the rules of a Union-wide payment scheme, for direct debits initiated by a payee through a PSP located in any Member State.
3. Paragraph 2 shall apply only to direct debits which are available to consumers as payers under the payment scheme. 

Article 9 - Payment accessibility

1.  A payer making a credit transfer to a payee holding a payment account located within the Union shall not specify the Member State in which that payment account is to be located, provided that the payment account is reachable in accordance with Article 3.
2. A payee accepting a credit transfer or using a direct debit to collect funds from a payer holding a payment account located within the Union shall not specify the Member State in which that payment account is to be located, provided that the payment account is reachable in accordance with Article

If you wish to raise a complaint in relation to IBAN Discrimination, you can contact the Bank by email at [email protected].

For more information on IBAN Discrimination, including a video explainer and a list of all competent authorities responsible for ensuring compliance with the SEPA Regulation, please visit the European Commission’s website.

In June 2022, the Central Bank wrote a Letter to all Regulated Financial Service Providers in the country, and a range of business and professional representative bodies, to remind firms of their obligations under SEPA. The Letter provided specific information to assist with the prevention of IBAN discrimination.