The Danish Financial Supervisory Authority has published questions and answers clarifying how banks can use Verification of Payee (VoP) for credit transfers while complying with confidentiality requirements under Section 117 of the Financial Business Act. The interpretation covers both disclosures required by EU rules for euro payments and voluntary verification where the service is not legally required. VoP requires the payer to enter the recipient’s account number and name, then indicates whether the name matches the account holder’s name. Danish banks must implement VoP for euro payments by July 9, 2027, under the EU’s Single Euro Payments Area (SEPA) Regulation. Disclosures made to comply with those EU requirements are permissible under Section 117. Where VoP is voluntary, banks may also inform the payer whether the submitted name and account number match. The rationale draws on Section 117a of the Financial Business Act, which permits disclosure of recipient information after an erroneous transfer so the payer can seek recovery. VoP serves the same objective by helping prevent erroneous transfers before payments are executed.
Danish Financial Supervisory Authority clarifies confidentiality rules for mandatory and voluntary payee verification
The Danish Financial Supervisory Authority has clarified that banks can use Verification of Payee (VoP) for credit transfers while complying with banking confidentiality rules. Danish banks must implement VoP for euro payments by July 9, 2027, and may also confirm whether a recipient’s name and account number match where verification is voluntary.