From 9th October, for each bank transfer made in France and in the SEPA (Single Euro Payments Area) zone, banks will have to ensure that the name of the beneficiary matches the IBAN entered.
This European measure, called Verification of Payee (VoP), is designed to combat fraud. According to the Banque de France agency, the Observatoire de la sécurité des moyens de paiement (OSMP), fraud increased by 12% in value in 2024, reaching €351 million in losses. One in two companies were victims of a transfer fraud attempt and 29% of fraud losses concern transfers (compared to 43% for bank cards).
The development of instant transfers, which are now free and irreversible, has increased the urgency of taking action.
How does it work?
For each transfer, your bank will ask the beneficiary's bank to check that the name entered matches the IBAN.
Four scenarios are possible:
Exact match: the transfer is validated.
Similar name (e.g. "Clerk" instead of "Clark"): The bank proposes a correction.
Mismatch: Alert and choice to validate or cancel.
Technical failure: decision at your own risk.
If you validate a transfer despite an alert, you will be held liable. In the event of fraud, the bank may refuse any refund.
Although that is likely to be a simple exercise for most individuals, for companies, the task could well be a substantial one. "This obligation also applies to transfers issued by companies, which poses a major technical challenge," says the French Association of Corporate Treasurers (AFTE).
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