Finance
Banking
Why your bank now checks the name behind every IBAN
Since 9 October 2025, banks across the euro area - Luxembourg included - must run a free "Verification of Payee" check before you confirm a transfer, flagging when the name you typed does not match the IBAN's real account holder. It is part of the EU's Instant Payments Regulation, which also forces banks to offer ten-second transfers at no extra cost. Here is what changed and why.