Final IPR Readiness Sprint: Sanctions Screening & Verification of Payee

The Instant Payment Regulation (IPR) deadline is racing toward us, and if you’re in the payments space, you can practically hear the ticking clock. This final stretch—often called the “readiness sprint”—is all about making sure your systems are locked, loaded, and 100% compliant. Two major areas that need your attention? Sanctions screening and the Verification of Payee (VoP).

In this article, we’ll break it all down into simple terms. Think of it as your last-minute study guide before the IPR exam hits. Let’s dive into what matters most.

The Instant Payment Regulation is the EU’s big move to make instant payments the new normal. No more waiting for hours—or even days—for a bank transfer to arrive. But speed without security? That’s a recipe for disaster.

That’s why the regulation isn’t just about speed—it’s also about safety, transparency, and compliance. Enter sanctions screening and VoP.

By October 9, 2025, all payment service providers in the EU must offer instant euro transfers 24/7/365, verify payees, and screen against sanctions lists—all in real time.

Here’s a quick look at what’s coming:

• October 2025: Last call for implementing sanctions screening.

• November 2025: VoP goes live for Euro accounts.

• 2026: Enforcement begins. No excuses. Non-compliance = penalties.

So, if your system isn’t ready yet, it’s time to move from “thinking about it” to “doing something about it.”

Sanctions screening is like a security checkpoint at an airport. Every transaction must be checked against international watchlists to ensure no bad actors are involved. Payment providers must screen:

• Senders

• Recipients

• Intermediaries

And it all needs to happen in real-time.

Failing to screen properly can lead to:

• Hefty fines

• Frozen assets

• Reputational damage

• Loss of license

Just ask the banks that have paid billions in fines for sanctions breaches. Don’t be the next headline.

Verification of Payee is exactly what it sounds like: confirming that the name entered by the payer matches the actual account holder’s name before the money goes out. Think of it as a double-check before sending a package—you want to be sure it’s going to the right person.

When you initiate a transfer, the system instantly returns one of three outcomes. A match means everything aligns and the payment can proceed with confidence. A partial match indicates the name is similar but not an exact match, signaling the user to double-check. A no match result flags a possible error or fraud risk, prompting the payer to reconsider before proceeding.

Implementing VoP early helps prevent fraud by stopping payments from going to scammers. It also builds customer confidence, as users feel reassured that their money is going where it should. On top of that, it improves operational efficiency by reducing failed or reversed payments. Companies that act early not only avoid regulatory headaches—they also position themselves as secure, trustworthy players in the digital payments space.

Imagine your payment system as a medieval fortress. Sanctions screening is your outer wall—it keeps the bad guys out. Verification of Payee is the inner gate—it makes sure only the right people get in.

Both are essential to:

• Prevent fraud

• Comply with IPR

• Keep customer data secure

• Avoid legal trouble

Skipping one? That’s like locking your front door but leaving the back door wide open.

Let’s be honest: not every company is ready. Some are still operating on legacy systems dating back to the early 2000s, while others lack the infrastructure for real-time APIs. In many cases, teams aren’t even sure whether their existing systems are capable of supporting Verification of Payee or sanctions screening at all. Sound familiar? You’re not alone—but the important thing is to recognize the urgency and take action now before the IPR deadline catches you off guard.

Use this checklist to assess your sprint readiness:

✅ Sanctions screening tool integrated
✅ VoP feature tested and live
✅ Real-time payment infrastructure updated
✅ Staff trained on IPR processes
✅ Customers informed of changes
✅ Fail-safes in place (alerts, logs, audits)

If you’re missing any of these, get moving. The clock’s ticking.

The final IPR readiness sprint isn’t just about avoiding fines. It’s about building a secure, trusted, and future-ready payment system. Sanctions screening and verification of payee are two of the most powerful tools in your arsenal—and they’re no longer optional.

Don’t wait for the deadline to get caught unprepared. The best time to start was yesterday. The second-best time? Now.