EU Enforces Strict Name-IBAN Matching for Bank Transfers from October 5, 2025
Starting October 5, 2025, new EU regulations will enforce strict name-IBAN matching for bank transfers, aiming to prevent errors and fraud. This change, known as the real-time transfer regulation (EU No. 2024/886), includes a payee check that compares the IBAN with the name of the account holder. However, the German Pension Insurance (DRV) has decided to waive this check for email payments, ensuring continued smooth transfers despite minor name discrepancies.
Under the new rules, recipients should ensure their account details are up-to-date and notify relevant parties of any changes to avoid error messages during recipient verification. If the recipient name and IBAN differ slightly, a corrected name suggestion may be shown, or a warning may appear for significant mismatches. Transfers may be delayed, rejected, or require manual review in such cases. The Leipziger Volksbank recommends opening a joint account or a new account to avoid potential problems with standing orders in such situations. Customers can still authorize a transfer even with 'No match' or 'nearly match' feedback, but they will receive specific information about the account holder's email. The legislator views constellations where payments are credited to the wrong account critically and may review the payment process. It remains uncertain whether the DRV's regulation waiver will remain in place long-term and what constitutes 'minor discrepancies in the name' for other institutions.
From October 5, 2025, the real-time transfer regulation will significantly impact bank transfers, with strict name-IBAN matching enforced. While the DRV has waived this check for email payments, recipients should still ensure their account details are accurate to avoid potential issues. Banks and customers alike should adapt to these changes to maintain secure and efficient transfer processes.
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