Introduction

Counterparty verification compares the counterparty name and IBAN of a payment with the account holder name that the counterparty bank holds. FinologeeBKO sends the request to the bank of the ordering party account and shows the answer next to the counterparty. Users see a mismatch before the payment reaches signatories and before the bank executes it.

Counterparty verification applies to credit transfers and standing orders created in FinologeeBKO, either one at a time or through a bulk file upload. The check never blocks a payment: users can create a payment without a check, while a check is still running, or after any result, including No match.

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Indicative results

FinologeeBKO transmits the request to your bank and displays the response without verifying, assessing, or modifying it. Results are indicative only. The decision to rely on a result and to proceed with a payment remains with the user.

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Prerequisites

Counterparty verification depends on the tenant configuration and on the ordering party account. Both conditions must be met before FinologeeBKO offers a check.

• The VOP feature flag is enabled for the tenant. Finologee Customer Support manages feature flags. See Feature flags.
• The bank of the ordering party account supports VoP.

Permissions

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Eligibility

FinologeeBKO evaluates eligibility for each payment. A payment is eligible only when all of the following conditions are true:

• The VOP feature flag is enabled for the tenant.
• The bank of the ordering party account supports VoP and is identified by a BIC.
• The ordering party account is a SEPA account.
• The counterparty account is a SEPA account.
• The counterparty account number is an IBAN.
• The counterparty is Active or Pending.

When a payment is not eligible, the counterparty card shows no Counterparty verification button and no result, and the payment is created without a check.

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Verification results

Each result appears as a badge on the counterparty card, in the credit transfers list, and in the counterparties list.

A payment or counterparty without a badge has no result: either no check ran or the payment is not eligible.

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Verifying a counterparty on a single payment

Verification is optional and starts only when the user requests it. This approach lets users decide per payment whether the check is worth the wait.

1. Click (+) and select Credit Transfer or Standing Order
2. Select the ordering party account and the counterparty
3. When the payment is eligible, click Verify counterparty on the counterparty card
4. Wait for the badge, or continue filling in the payment while the card shows Verification in progress
5. Save the payment as a draft or send it for authorization

FinologeeBKO asks for confirmation in the following cases:

• The result is Partial match or No match: the user confirms that the payment continues with a counterparty name that does not match the bank records
• The check is still in progress: the user confirms that the payment continues without waiting for the result

If the user changes the counterparty after a check, the result is discarded and the Verify counterparty button appears again for the new selection.

The payment keeps the result that its own check produced. Later checks of the same counterparty on other payments do not change the result shown on the payment details page. To see the result again, open the credit transfer details or the standing order details and read the counterparty card.

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Editing payments

A draft payment that already has a result keeps it while the counterparty stays the same. Duplicated payments and edited cancelled or rejected payments start without a result, and users run a new check.

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Verifying counterparties in a bulk upload

When a bulk payment file contains at least one eligible payment and the tenant has Counterparty verification enabled, the upload dialog shows a Verify counterparties checkbox after validation. An information icon next to the checkbox displays the disclaimer about indicative results.

1. Upload the payment file as described in Credit transfers
2. Wait for the validation to finish
3. Select Verify counterparties
4. Confirm the upload

FinologeeBKO creates the payments and runs the verification in the background. Eligible payments display Verification in progress in the Counterparty verification column until the bank answers or the request times out. The list does not refresh automatically: users refresh the page to see the final results.

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Renaming a counterparty after a close match

A Partial match includes the name that the bank holds. Users can adopt that name so the counterparty data matches the bank records.

The Rename action appears:

• On the counterparty card of the credit transfer creation form and the credit transfer details page, and next to the badge in the credit transfers list, for payments in Draft status, when the user has PAYMENT_CREATE and COUNTERPARTY_ACCOUNT_WRITE
• On the counterparties list and the counterparty details page, for Active or Pending counterparties, when the user has COUNTERPARTY_ACCOUNT_WRITE

To rename a counterparty:

1. Click Rename
2. Review the current name and the name suggested by the bank
3. Confirm the change

When the user confirms:

• FinologeeBKO replaces the counterparty name with the suggested name
• When the counterparty has no alias, FinologeeBKO saves the previous name as the alias
• An Active counterparty returns to Pending and needs a new approval before signatories can sign payments to it
• FinologeeBKO does not run the verification again and removes the displayed result of the counterparty. The counterparty shows a dash until a new check runs
• Draft payments to the counterparty point to the renamed counterparty and show its new name
• The audit logs of the counterparty and of the draft payment record the change with the text: "Counterparty name updated from {old name} to {new name} as suggested by the Counterparty verification service. Change accepted by {user}."

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Counterparties managed by another system

The rename dialog opens for a counterparty provisioned by an external system, for example a KYC system, so users can read the suggested name. The confirm action is disabled unless the tenant allows editing of externally managed counterparties. Users then apply the change in the system that imported the counterparty and run a new check.

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Verification results on lists and details

The counterparties list shows the latest result of each counterparty and clears it when the counterparty name changes. The credit transfers list shows the result that belongs to each payment and does not change afterwards.

When an asset service provider sends a payment to a depositary tenant for approval, the signatories of the depositary see the result that the sender obtained on the signing request card, because the depositary cannot verify the payee itself.

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Payments created through the AI assistant

When the tenant has Counterparty verification enabled, the AI assistant connected through the MCP server offers the check while it creates credit transfers. For a single credit transfer, the assistant asks whether to run a check and reports the result before it creates the payment. For several credit transfers, the assistant asks whether to verify the payees of the whole batch. Users answer in the conversation, and the same eligibility rules apply.

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Best practices

• Run a check for new or changed counterparties — A mismatch between the name and the IBAN is the most common cause of misdirected payments
• Read the result before sending for authorization — Signatories see the result on the payment and on the mobile signing card
• Accept the suggested name only when you trust the bank answer — A rename sends an active counterparty back to Pending
• Refresh the list after a bulk verification — Results arrive after the upload completes
• Run a new check after a rename — The rename clears the previous result

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Related documentation

• Credit transfers - Create and track credit transfers — Where the result appears on lists and details
• Standing orders - Configure recurring payments — Verification for recurring payments
• Counterparties - Investor and beneficiary management — Result columns, filters, and the rename action
• FinologeeBKO Mobile App - Authentication and transaction signing — Result on the signing request card
• Feature flags - Tenant-level configuration switches — The VOP feature flag

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Support

For assistance with Counterparty verification, contact [email protected].