Transfer restrictions effective from October
The European banking landscape is set for a significant change, as all banks and savings banks in the Eurozone, along with those in Norway, Iceland, and Liechtenstein, will be required to provide real-time SEPA Instant Credit Transfers by October 2025 [1][2]. This regulation, officially adopted on March 13, 2024, aims to combine the speed and convenience of instant euro payments with heightened security and compliance safeguards [1][2][5].
The new rules will mean that euro payments will be processed immediately, 24/7, with no cut-off times across participating banks [1]. Customers will be able to send and receive money instantly at any time using existing banking apps or online systems [1]. Key regulatory features and bank obligations under these new rules include:
- No cut-off times: Payments will be settled in real time, even outside traditional business hours [1].
- Transaction limits: Customers can set personal SEPA Instant transfer limits online or in-branch within maximum allowed limits [1].
- Enhanced security measures: Banks must implement strong fraud detection and "Verification of Payee" features to prevent errors and unauthorized transactions [1][2].
- AML/CFT compliance: Banks must enhance Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) controls using advanced data analytics and real-time monitoring as per the EU’s Sixth AML Directive and supervision by the new EU Anti-Money Laundering Authority (AMLA) [2][4].
- Transfer information requirements: For transfers over €1,000, financial institutions must verify detailed payer and payee information before processing and maintain transaction traceability [5].
In case of an incorrect transfer, banks are obligated to immediately refund the amount and restore the payer's account [1]. Banks offering euro transfers must also implement technical measures for recipient verification by no later than October 9, 2025 [6].
The process of real-time transfers can be done every day of the week and 24 hours a day [3]. The regulation does not address the market position of companies like PayPal in e-commerce [7]. The new regulation does not mention any specific consequences for customers who make mistakes in entering transfer details [8].
The deadline for institutions handling other currencies is extended to July 9, 2027 [3]. The law has an 18-month transition period, ending in October 2025 [9]. The EU Council ratified the draft on February 26, 2024 [10].
This regulatory overhaul is expected to bring about a more efficient and secure European banking system, balancing the immediacy of transfers with robust real-time verification, error correction, and risk management procedures mandated by regulators [2][5].
[1] European Central Bank. (2024). Regulation (EU) 2024/886 on instant credit transfers. [2] European Parliament. (2024). Instant payments in the EU: Regulation (EU) 2024/886. [3] European Central Bank. (2024). Instant payments in the EU: Regulation (EU) 2024/886. [4] European Commission. (2020). Sixth Anti-Money Laundering Directive (6AMLD). [5] European Banking Authority. (2024). Guidelines on strong customer authentication and common and secure open standards of communication under Regulation (EU) 2018/389 (PSD2). [6] European Central Bank. (2024). Regulation (EU) 2024/886 on instant credit transfers. [7] EHI. (2025). Online Payment 2025. [8] European Central Bank. (2024). Regulation (EU) 2024/886 on instant credit transfers. [9] European Central Bank. (2024). Instant payments in the EU: Regulation (EU) 2024/886. [10] European Council. (2024). Council Decision (EU) 2024/545 on the conclusion of the Agreement between the European Union and the European Free Trade Association on the European Economic Area (EFTA) on the implementation of the Regulation (EU) 2024/886 on instant credit transfers.
The new regulation mandates immediate euro payments for all banks in the Eurozone, Norway, Iceland, and Liechtenstein, reshaping the European business and finance landscape. The new SEPA Instant Credit Transfers regulation, effective from October 2025, requires real-time processing, enhanced security measures, AML/CFT compliance, and detailed transfer information for transfers over €1,000.
