SMEs: new mandatory verification of name + IBAN in immediate transfers

 

Since October 9, banks must verify that the beneficiary's name matches the real holder of the IBAN before executing immediate transfers in euros.

It is no longer enough for the account number to be "valid". Now, the system must also confirm who really owns that account.

This represents a very relevant novelty for SMEs because it reduces a type of fraud that has grown significantly in recent years: the manipulation of invoices or emails to divert payments to bank accounts that do not belong to the real supplier.

Why does this affect companies so much?

Because SMEs are the preferred target in payment fraud:

• they process many small and medium transfers

• they have several suppliers and salespeople in contact

• they rely on emails and documents they receive on a daily basis

This reform obliges the bank to act as a second validation layer.
And that changes the risk landscape.

What happens now within the bank?

• it automatically checks name + IBAN

• if they do not match → a clear warning appears on the screen

• the company can abort or review the operation

This allows to detect typographical errors, incorrectly copied IBANs or malicious modifications in a document that has reached administration.

And very important for companies: if the bank does not perform the check or issue the warning, the responsibility shifts to the financial institution, which may have to refund the lost money.

Practical impact on your SME's processes

• review and update the internal register of supplier accounts

• implement double validation in bank data changes

• require suppliers to communicate changes through secure channels

And from now on, when an immediate payment is made, the error will be detected before executing it, not after the money has been sent.

A new practice of diligence

The EU is raising the minimum security standard for business payments. What was previously a "good internal habit" of control... becomes part of the payment system itself.

At Valero Tax Legal, we recommend taking advantage of this measure to further professionalize the internal payment processes of SMEs and close the door to a type of fraud that is costing millions in Europe and that is 100% preventable if appropriate processes are applied.