I have had the same problem with SEPA transfer failure on two occations in November and then again yesterday. I'm verified to tier 3 and are tranfering in EUR to a Danish account which I know for certain will accept SEPA deposits in EUR. I have tried both with 8 and 11 character BIC, but all attempts have resulted in "Failure" within 2-24 hrs. Kraken support have been very unresponsive and after a week a got an answer saying they were not sure why my transfers were failing and would get back to me with more information, which never happened.
Until this issue is resolved I can't recommend using Kraken if you want to be able to transfer your money back to your ordinary bank.
I would like to know if anybody has been able to withdraw EUR with SEPA from Kraken?