February 2026
JEL Classification: G21, G23, K24, O33
Keywords: virtual IBAN, money laundering, payment institutions, SEPA
The paper examines the issuance of multiple IBANs linked to a single account, known as 'virtual IBANs' (vIBANs). Introduced to facilitate payment reconciliation, these identifiers offer operational advantages but also entail money laundering risks. The study proposes a taxonomy of vIBAN configurations, highlighting their implications for retail payments in the SEPA area and for industry trends such as Open Banking and Banking as a Service. The paper also includes an empirical analysis based on data from major vIBAN providers and on the distribution of payment institutions within the European Union.
