diff --git a/frappe/model/base_document.py b/frappe/model/base_document.py
index aa22772b9b..427ff2a334 100644
--- a/frappe/model/base_document.py
+++ b/frappe/model/base_document.py
@@ -993,6 +993,7 @@ class BaseDocument:
 		from frappe.utils import (
 			split_emails,
 			validate_email_address,
+			validate_iban,
 			validate_name,
 			validate_phone_number,
 			validate_phone_number_with_country_code,
@@ -1031,6 +1032,9 @@ class BaseDocument:
 			if data_field_options == "URL":
 				validate_url(data, throw=True)
 
+			if data_field_options == "IBAN":
+				validate_iban(data, throw=True)
+
 	def _validate_constants(self):
 		if frappe.flags.in_import or self.is_new() or self.flags.ignore_validate_constants:
 			return
diff --git a/frappe/public/js/frappe/form/controls/data.js b/frappe/public/js/frappe/form/controls/data.js
index d80c7467cf..6b3a501eb8 100644
--- a/frappe/public/js/frappe/form/controls/data.js
+++ b/frappe/public/js/frappe/form/controls/data.js
@@ -267,7 +267,7 @@ frappe.ui.form.ControlData = class ControlData extends frappe.ui.form.ControlInp
 	}
 	format_for_input(val) {
 		if (this.df.options == "IBAN" && val) {
-			return val.replaceAll(" ", "").replace(/(.{4})(?=.)/g, "$1 ");
+			return frappe.utils.get_formatted_iban(val);
 		}
 		return val == null ? "" : val;
 	}
diff --git a/frappe/public/js/frappe/form/formatters.js b/frappe/public/js/frappe/form/formatters.js
index c068502fc7..1b91be7abc 100644
--- a/frappe/public/js/frappe/form/formatters.js
+++ b/frappe/public/js/frappe/form/formatters.js
@@ -38,6 +38,10 @@ frappe.form.formatters = {
 			if (!value) return;
 			return `<a href="${value}" title="Open Link" target="_blank">${value}</a>`;
 		}
+		if (df && df.options == "IBAN") {
+			if (!value) return;
+			return frappe.utils.get_formatted_iban(value);
+		}
 		value = value == null ? "" : value;
 
 		return frappe.form.formatters._apply_custom_formatter(value, df);
diff --git a/frappe/public/js/frappe/utils/utils.js b/frappe/public/js/frappe/utils/utils.js
index 1a95d2c211..24956b54d8 100644
--- a/frappe/public/js/frappe/utils/utils.js
+++ b/frappe/public/js/frappe/utils/utils.js
@@ -1134,6 +1134,14 @@ Object.assign(frappe.utils, {
 		return duration;
 	},
 
+	get_formatted_iban(value) {
+		if (!value || ["BI", "SV", "EG", "LY"].some((country) => value.startsWith(country))) {
+			return value;
+		}
+
+		return value.replaceAll(" ", "").replace(/(.{4})(?=.)/g, "$1 ");
+	},
+
 	seconds_to_duration(seconds, duration_options) {
 		const round = seconds > 0 ? Math.floor : Math.ceil;
 		const total_duration = {
diff --git a/frappe/tests/test_utils.py b/frappe/tests/test_utils.py
index 5f57550e64..78acfaf17a 100644
--- a/frappe/tests/test_utils.py
+++ b/frappe/tests/test_utils.py
@@ -34,6 +34,7 @@ from frappe.utils import (
 	get_site_info,
 	get_sites,
 	get_url,
+	is_valid_iban,
 	money_in_words,
 	parse_and_map_trackers_from_url,
 	parse_timedelta,
@@ -479,6 +480,26 @@ class TestValidationUtils(IntegrationTestCase):
 		for name in invalid_names:
 			self.assertRaises(frappe.InvalidNameError, validate_name, name, True)
 
+	def test_validate_iban(self):
+		valid_ibans = [
+			"GB82 WEST 1234 5698 7654 32",
+			"DE91 1000 0000 0123 4567 89",
+			"FR76 3000 6000 0112 3456 7890 189",
+		]
+
+		invalid_ibans = [
+			# wrong checksum (3rd place)
+			"GB72 WEST 1234 5698 7654 32",
+			"DE81 1000 0000 0123 4567 89",
+			"FR66 3000 6000 0112 3456 7890 189",
+		]
+
+		for iban in valid_ibans:
+			self.assertTrue(is_valid_iban(iban))
+
+		for not_iban in invalid_ibans:
+			self.assertFalse(is_valid_iban(not_iban))
+
 
 class TestImage(IntegrationTestCase):
 	def test_strip_exif_data(self):
diff --git a/frappe/utils/__init__.py b/frappe/utils/__init__.py
index c1362bb33b..0279fb9c85 100644
--- a/frappe/utils/__init__.py
+++ b/frappe/utils/__init__.py
@@ -261,6 +261,44 @@ def validate_url(
 	return is_valid
 
 
+def validate_iban(iban: str, throw: bool = False) -> bool:
+	from frappe import _
+
+	valid = is_valid_iban(iban)
+	if not valid and throw:
+		frappe.throw(frappe._("'{0}' is not a valid IBAN").format(frappe.bold(iban)))
+
+	return valid
+
+
+def is_valid_iban(iban: str) -> bool:
+	"""
+	Algorithm: https://en.wikipedia.org/wiki/International_Bank_Account_Number#Validating_the_IBAN
+	"""
+	if not iban:
+		return False
+
+	def encode_char(c):
+		# Position in the alphabet (A=1, B=2, ...) plus nine
+		return str(9 + ord(c) - 64)
+
+	# remove whitespaces, upper case to get the right number from ord()
+	iban = iban.replace(" ", "").upper()
+
+	# Move country code and checksum from the start to the end
+	flipped = iban[4:] + iban[:4]
+
+	# Encode characters as numbers
+	encoded = [encode_char(c) if ord(c) >= 65 and ord(c) <= 90 else c for c in flipped]
+
+	try:
+		to_check = int("".join(encoded))
+	except ValueError:
+		return False
+
+	return to_check % 97 == 1
+
+
 def random_string(length: int) -> str:
 	"""generate a random string"""
 	import string