New money transfer rule introduced for six major UK banks
1 July 2020, 11:14
Six banks - including Natwest and HSBC - have introduced new safety measures for customers transferring money to family and friends.
New bank transfer rules that will allow users to pass more security checks came into action yesterday.
A 'confirmation of payee' safety measure will be introduced to six banks, including Natwest and HSBC, and it will allow the users to check exactly who they're transferring money to, according to the Mirror.
The system was first introduced in October 2018, but it became law on June 30.
First Direct, Lloyds, Halifax, RBS (including NatWest), Nationwide and Santander will introduce it on that date, and TSB have said it will follow by October 2020.
It is part of ongoing efforts to clampdown on fraud, which costs the UK economy more than £130billion a year.
Transfers require you to put in their sort code and account number, and banks didn't always have to verify the name of the recipient.
However, from June 30, customers will be able to ask their bank to check whether the name on the account matches with the one you're sending money to - and they will notify you if it doesn't.
You will only be able to request the safety check if both banks use the scheme.