Bank identifier change halts INSS pension payments to Andorra

Some residents of Andorra who receive Spanish Social Security (INSS) pensions did not receive their November payments after a banking identifier used for consolidated transfers was deactivated during the integration of BancSabadell d’Andorra into MoraBanc.

For years the INSS sent a single consolidated credit to BancSabadell d’Andorra, which then split that payment into individual transfers using an instruction file supplied by the INSS. After the integration, MoraBanc continued to accept payments using BancSabadell’s SWIFT code, but in November the acquiring bank deactivated that identifier as part of operational changes.

MoraBanc says the change was not taken into account by the Spanish correspondent that channels INSS payments to Andorra. The correspondent—reported to be HSBC—did not adapt to the new bank identifier, preventing the consolidated payment from being processed and delaying the individual pension transfers.

The bank informed affected customers that “an incident with the issuing bank responsible for transferring your pension from the Spanish Social Security” had occurred and that it was working with partners to resolve the problem. MoraBanc also told clients it expects the situation to be resolved quickly and that the number of people affected is not excessively large.

Efforts to regularise payments did not succeed immediately. Some pensioners who had expected the payment before the weekend remained unpaid as the correspondent bank continued to process the transfer. MoraBanc said on Friday evening that the issuer had not yet resolved the incident and the matter remained under active follow-up.

To limit the impact on customers, MoraBanc has said it will cover any overdrafts or charges that result from the delay. The bank maintains that only pension transfers routed through the affected channel were impacted and that no other correspondent arrangements were involved.

The disruption has caused frustration among some pensioners, particularly because this month’s benefit was due as a double payment for some recipients. MoraBanc says it is in permanent contact with the correspondent and the INSS to complete the transfers as soon as possible.