Belgian banks are set to introduce “beneficiary name verification” for electronic transfers, also known as IBAN name check, in an effort to combat fraud related to money transfers, announced financial sector federation Febelfin on Monday.
This complimentary service will alert customers if the recipient’s name and account number do not match.
During the transfer process, the sender’s bank verifies with the recipient’s bank whether the account number (IBAN) and name align. This check is automatic and requires no extra steps from the customer. If there is a mismatch, the bank will notify the sender, who can then choose to proceed with the transaction, with or without adjustments. Febelfin emphasises that the sender remains responsible for all transactions and the verification primarily serves as a warning to ensure the funds reach the correct recipient.
“If you receive an error message from the bank, update the name in your trusted beneficiaries list to avoid future alerts,” advises the financial sector federation. For instance, when sending money to your father, use his official name as the beneficiary rather than “Dad” to prevent error messages.
Minister of Consumer Protection Rob Beenders hopes that this free service will offer consumers an added layer of security during payments and boost confidence in online banking.
To facilitate this verification process, banks encourage organisations and business beneficiaries to correctly list their names on invoices, with their bank, and with the Crossroads Bank for Enterprises.
In the coming weeks, Belgian banks will be among the first in Europe to implement this change, with its legal launch across the eurozone expected by 9 October at the latest.
