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RESOLUTION OF NATIONAL BANK OF THE REPUBLIC OF MOLDOVA

of July 24, 2014 No. 138

About approval of the Concept of optimization of national translations

Based on Art. 5 of the item f) the Law No. 548-XIII of July 21, 1995 on National Bank of Moldova (The official monitor of the Republic of Moldova, 1995, Art. No. 56-57, 624), with subsequent changes and amendments, the Art. 49, part (3) and the Art. 94, part (1) the item (c) the Law No. 114 of May 18, 2012 on payment services and electronic money (The official monitor of the Republic of Moldova, 2012, Art. No. 193-197, 661) DECIDES: Administrative council of National Bank of Moldova

1. Approve the Concept of optimization of national translations it (is applied).

2. Publish this resolution in the Official monitor of the Republic of Moldova.

Chairman of the National commission on the financial market

Artur Hermann

Appendix

to the Resolution of Administrative board of National Bank of the Republic of Moldova of July 24, 2014 No. 138

Concept of optimization of national translations

Chapter I. Prerequisites and need of implementation of the IBAN code for national translations

The international experience in use of IBAN for implementation of local payments

For the purpose of minimization of manual intervention in processing of the translations the European committee of bank standards (English ECBS - European Committee for Banking Standards) developed standards of the automated processing of interbank payments known as Straight Through Processing (further - STP).

STP represents set of tools which carry out the automated processing of interbank financial transactions from issue and before calculation, thereby completely eliminating need of manual handling of data, and also minimizing costs and the corresponding risks.

IBAN is one of STP mechanism components, representing the sequence of symbols and unambiguously identifying the account of any client of financial institution, without the need for manual transformation of data.

(The EU and not entering the EU) increase in potential of the STP mechanism, reduction of number of wrong payments and cost of their accomplishment, correction and research of mistakes, implementation of the general standard for all registered financial institutions representing the standard available not only on national but also at the international level was the purpose of implementation of the IBAN code for use of local payments in other countries.

Need of implementation of the IBAN code for implementation of local payments

Need of implementation of the IBAN code in the Republic of Moldova follows as from experience of other countries in implementation of the IBAN code, and from benefits of use of the STP mechanism.

Use of the STP mechanism will allow to reduce considerably time of implementation of the translations, to minimize possible mistakes and to accelerate implementation of payments by means of remote bank systems. Also use of the IBAN code will promote implementation of interbank payments, allowing to identify the receiver of payment even if the payer did not specify any detail about the account into which money shall get.

Implementation of the IBAN code for payments in Moldovan lei in the territory of the Republic of Moldova will allow both alignment on the international practice, and identification of benefits of its use: minimization of possible mistakes, reducing time of processing and reduction in cost of translation service, and in this context are important knowledge of clients of bank of these benefits.

Use of the STP mechanism which includes processing and the automated check of the standardized structure of the IBAN code will allow to minimize time of processing of the translations.

Also thanks to the standardized structure and check of the IBAN code in payer bank before transfer, registration and transfer of wrong information is excluded, providing minimization of wrong data.

At the same time decrease in manual intervention in payment messages by means of the automated check of the IBAN code before transfer will allow to reduce cost of translation, cutting down expenses on aspects of technical nature and servicing.

Chapter II. Forming of the IBAN code for national translations

The method of forming of the IBAN codes for national translations will be identical to method of formation of the IBAN code used for implementation of international transfers.

The IBAN codes intended for the Republic of Moldova represent the sequence of 24 alphanumeric symbols which have the following values:

a) the first two symbols (alphabetic) - are country code according to ISO 3166 ("MD" for the Republic of Moldova);

b) The following two symbols (digital) is control category (is calculated according to the international standard MOD 97-10, ISO-7064);

c) the following two symbols (alphanumeric) - represent the bank ID appropriated by National Bank of Moldova according to regulations of item 54 of the Regulations on the credit translation approved by the Resolution of the NBM Administrative board No. 157 of August 1, 2013;

d) the following eighteen symbols (alphanumeric) - represent customer ID, served by bank (BBAN code), the containing customer account opened in bank, and, if necessary, other elements necessary for identification of the client (currency code, code of branch, etc.). If the customer ID has length less than eighteen symbols, it is supplemented with zero which are put down at the beginning of the identifier. If the customer account opened in bank has length more than eighteen symbols, the bank will shall change the corresponding accounts by their inclusion in limit of eighteen symbols.

Forming of the IBAN code for the national translations intended for the national public budget will be performed according to provisions III of Chapter of this Concept.

Chapter III. Use of the IBAN codes for the budget payments

The National Bank of Moldova regulates the main questions connected with use of the IBAN codes including for the budget payments, special rules on their use will be developed by the Ministry of Finance of the Republic of Moldova.

In case of national budget and international transfers for one settlement account several IBAN codes can be generated.

The chosen bank by means of which cash budget implementation will be realized shall observe requirements of forming of the IBAN codes for the national and international transfers established both by regulations of National Bank of Moldova, and the regulations and special procedures developed by the Ministry of Finance of the Republic of Moldova.

At the same time in case of collection of payments in the national budget by means of the service MPay the organization providing services shall use the IBAN codes according to the structure established by the Ministry of Finance of the Republic of Moldova.

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