The IBAN system has specialized algorithms that are uniquely accurate, and the system was designed to help spot errors by verifying the IBAN against the account holder’s information. Your details are validated against the international database for structural and formatting checks to keep transaction errors to a minimum. This system was agreed with multinational banking institutions and financial regulators to ensure consistency and so that the necessary verification processes are implemented. IBAN numbers can only be used to send or receive money between accounts, not for withdrawing money or transferring account ownership.