Croatia part of new bank transfer rules starting in October

A new European Union regulation aimed at increasing the security of bank transfers will come into effect across all member states, including Croatia, on 9 October 2025.

Known as Verification of Payee (VoP), the regulation introduces mandatory checks on the match between the recipient’s name and IBAN number before a payment is approved.

The goal of the new rules is to reduce the risk of fraud and incorrect transactions, offering greater protection for individuals, companies and institutions.

The system will apply to all types of transfers, including salaries, pensions, rent payments, social benefits and other financial transactions.

How the VoP System Works

The VoP system has been designed to be user-friendly and intuitive. It operates using a visual traffic light model to display the result of the verification process:

Green light means the recipient’s name and IBAN match fully. The transaction is considered safe and can be processed without concern.

Yellow light indicates minor mismatches, such as spelling errors or missing punctuation in double surnames. Payments can still be made, but at the sender’s own risk.

Red light signals a serious mismatch between the provided name and IBAN. This suggests a high risk of fraud or error. Although the sender can still choose to proceed, they accept full responsibility if the payment is lost and cannot be recovered.

Responsibility on Public Institutions and Businesses

The regulation brings significant responsibilities, especially for government institutions and public employees handling transfers such as pensions or social benefits.

They will be required to carry out thorough checks to ensure the accuracy of recipient data.

If a payment is made despite a yellow or red warning, and the money does not reach the correct recipient, the institution could be required to reimburse the loss from its own budget. This highlights the importance of careful processing and compliance with the new system.

The introduction of VoP marks an important step in strengthening financial security across the EU, and it will impact anyone making or receiving payments in Croatia.

As the October deadline approaches, institutions and individuals alike are being encouraged to prepare for the upcoming changes.