What is an International Bank Account Number (IBAN)
Muscat: The CBO will implement the International Bank Account Number (IBAN) on domestic financial transactions from July 1, 2025, aimed at enhancing the efficiency of local payment transactions, minimizing operational errors, and expediting financial transfers between individuals and businesses.
CBO implemented the IBAN system for international transfers on March 31, 2024. This initiative has significantly improved transaction accuracy, reduced errors, and accelerated processing times for both local and international bank transfers. Given the success of this implementation, CBO is taking the next step by discontinuing the acceptance of international transfers that do not include an IBAN. This measure ensures further alignment with international standards and best banking practices.
In this context, CBO has issued directives to local banks to stop receiving cross-border transfers that do not include IBAN, as of July 1, 2025. Instead, the use of the IBAN Number will be mandatory for all incoming international transactions.
What is an IBAN
IBAN, or "International Bank Account Number," represents the international standard used for bank account numbering. This system supports the exchange and processing of transactions across borders by enabling the sharing of account identification information in a format that machines can read.
The number starts with a two-digit country code, then two numbers, followed by several more alphanumeric characters based on the bank account number.
BAN does not replace a bank's own account numbering, as it's only meant to provide additional information that helps in identifying overseas payments to ensure accuracy and reduce errors in this process.
The IBAN for the Sultanate of Oman is fixed in length, 23 characters, to make it as long as per the requirements and as short as possible to ensure convenience to customers and Banks.
Country Code: The first 2 characters of the IBAN are fixed as 'OM', which is the ISO 3166-1 two-letter Country Code that identifies Oman as the country where the bank that services the customer account is located.
Check Digits: The third and fourth characters of the IBAN are numeric and represent the check digits (2 digits) which are generated by the bank that issues the IBAN.
The IBAN shall be used by Banks and their customers for Electronic Payments, which includes a. All Cross-border incoming Electronic Payments to customer accounts of Banks in the Sultanate of Oman from customer accounts of banks/financial institutions in 'Countries that have adopted IBAN' as well as 'Countries that have not adopted IBAN'.
Domestic Electronic Payments to and from customer accounts of Banks in the Sultanate of Oman.
Cross-border outgoing Electronic Payments from customer accounts of Banks in Sultanate of Oman to customer accounts of banks/financial institutions in 'Countries that have adopted IBAN' where the use of IBAN is mandatory.
Customers shall be allowed to use IBAN in making cross-border, outgoing Electronic Payments from their Bank accounts in the Sultanate of Oman to customer accounts of banks/financial institutions in other countries that have adopted IBAN, but the use of IBAN is not mandatory.
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