New Regulations Push for Instant, Secure Bank Transfers in Belgium
Belgium is poised to see a significant shift in banking practices with new legislation aimed at making instant transfers the standard, not the exception. Driven by a European regulation and championed by Deputy Prime Minister and Minister of the Economy and employment, David Clarinval, the draft law seeks to modernize payment systems and bolster financial security.
Currently, a ample amount of capital – estimated at nearly 187 billion euros across europe in 2022 – remains tied up within the financial system. Instant transfers are intended to unlock this capital and streamline economic activity, offering a cost-effective payment solution for businesses, notably small traders and those dealing in second-hand goods.
To ensure banks comply with the new rules, the Federal Public Service (FPS) Economy will be responsible for oversight and enforcement. Banks failing to offer instant transfers, or attempting to levy fees for the service, face substantial penalties. A “level 5 sanction” – fines ranging from 2,000 to 800,000 euros – will be applied for non-compliance.
The legislation also introduces a new “IBAN name Check” system to combat the growing threat of invoice fraud. This system automatically verifies that the beneficiary’s name matches the IBAN account number before a payment is finalized. If a discrepancy is detected, the user receives a warning. In 2024 alone, the FPS Economy recorded 215 cases of invoice fraud, resulting in losses exceeding 3.3 million euros.
These changes represent a considerable evolution for both individuals and businesses. Furthermore, the new instant transfer infrastructure will serve as the foundation for Wero, a European QR code payment solution designed to supersede Payconiq.
Clarinval emphasized the goal is to create “banking services that are faster,more reliable and less dependent on non-European players.” The bill is scheduled for review by the Finance committee on November 4th.
