In October, Cypriot banks will implement SEPA payment recipient verification

Starting in October, all Cypriot banks operating in the SEPA zone will begin applying a new service, Verification of Payee (VoP) — checking the consistency of the recipient's name and IBAN before executing a transfer.

According to the Cyprus Bank Association, VoP covers the following cases:

Full match — name and IBAN match → transfer proceeds without restrictions;

Partial match — similar but not exact data (e.g., due to an error) → sender sees a warning and the suggested correct name, with the option to confirm the transfer;

No match — name and IBAN do not match → the system warns of high risk of error, transfer is suspended until verified;

VoP Not Possible — for technical reasons or if the recipient's bank account is inactive → the client sees a message that verification is impossible and can decide to proceed at their own risk;

It is also noted that the service will be free for clients and will apply to all euro payments — both standard and "urgent".

Banks are already preparing technical updates to ensure VoP works across all channels — internet banking, mobile apps, etc. The Association emphasizes that this step aims to increase the reliability of electronic payments and reduce errors and fraud.