Newโค Regulations Push for Instant, Secure Bank Transfers in โฃBelgium
Belgium is poisedโฃ to see a significant shift in banking practices with new legislation aimed atโข making instant transfers the standard, not โthe exception. Driven by a European regulation and championed by Deputy Prime Minister and Minister of theโ Economy and โemployment, David Clarinval, the draft law seeks to modernize payment systems โand bolster financial security.
Currently, aโฃ ample amount ofโฃ capital – estimated at โขnearly 187 billion euros across europe in 2022 – remains tied up within the financial system. Instant transfersโข are intended toโ unlock thisโ 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)โข Economy willโ be responsible for oversight โคand enforcement. Banksโฃ failingโค to offer instantโ transfers, or attempting to levyโฃ fees โfor the service, faceโ substantial penalties. A “level 5 sanction” – fines ranging fromโ 2,000 toโค 800,000 euros – will be applied for non-compliance.
The legislation also introduces a new “IBAN name Check” system โฃto combat the growing โthreat of invoice fraud. This system automatically verifies that the โขbeneficiary’s โคname matchesโข the IBAN account numberโ before a payment is finalized. If a discrepancy โis โdetected, the user receives a warning.โ In 2024 alone, the FPS Economy recorded 215 cases ofโ invoice fraud,โ resulting โขin โlosses exceeding โค3.3โ millionโค euros.
These changes represent aโฃ considerable evolution for bothโ individuals and businesses. Furthermore, โthe new instant transferโฃ infrastructure will serve as the foundation for Wero, aโข Europeanโ QR โฃcode payment solution designed toโ supersede Payconiq.
Clarinvalโฃ emphasized the goal is to create “banking services โฃthat are faster,more reliable and less dependent on โnon-European players.” The bill is scheduled forโข review by the Finance committee on November 4th.
