Overview

• From 9 October 2025, banks must run Verification of Payee checks that compare the entered beneficiary name with the IBAN on electronic transfers.
• The launch produced warning messages for payments to Brandenburg tax offices after mismatching name records at the Bundesbank, which have since been corrected.
• Transfers can still be executed after a mismatch alert, but systems warn of possible fraud and many users cancel payments when they see the message.
• Existing standing orders are not checked at execution, but new or modified standing orders trigger verification, according to Deutsche Bank.
• BaFin advises payers to use the exact recipient name from invoices, review the verification result before approval, and remember they remain responsible because transfers are usually not revocable.