What are the two parts that precede the BBAN in an IBAN?

The correct understanding of an International Bank Account Number (IBAN) begins with its structure. An IBAN is made up of multiple components designed to enhance the efficiency and accuracy of international transactions. Specifically, the two parts that precede the Basic Bank Account Number (BBAN) are indeed a two-letter ISO country code and two check digits.

The two-letter ISO country code identifies the country where the bank account is held, and this follows the international standard for codes established by the International Organization for Standardization (ISO). The two check digits serve as a verification mechanism, ensuring that the IBAN is valid and has been correctly formulated. These digits are calculated using a specific algorithm that checks the integrity of the IBAN, thereby helping to prevent errors in payment processing.

This structure is crucial because it standardizes the format of bank account numbers globally, facilitating seamless cross-border transactions while reducing the likelihood of fraud or misdirected payments.