Instant Payments Regulation (IPR) refers to a set of rules governing the transfer of funds in real time, allowing payments to be processed and completed almost instantly, 24/7. With the rise of instant payments, regulators have introduced IPR to ensure that financial institutions maintain security, transparency, and compliance with anti-money laundering (AML) and financial crime regulations.

Specifically, in the European context, the Instant Payments Regulation (IPR) is a European Union (EU) law that requires banks and financial institutions to offer instant payments to customers 24/7. The IPR came into effect on April 8, 2024. With initiatives like the SEPA Instant Credit Transfer (SCT Inst), Europe has embraced instant payments to enhance efficiency and convenience for businesses and consumers. However, this rapid pace of transactions introduces new challenges for anti-money laundering (AML) and financial crime compliance.

Given the real-time nature of these payments, there is little time for traditional due diligence and fraud checks. European regulators have introduced the IPR to ensure that instant payments are secure and compliant with AML regulations, mandating financial institutions to deploy advanced systems capable of detecting suspicious transactions as they occur. Compliance with these regulations is critical to prevent money laundering, fraud, and other financial crimes from exploiting the speed of instant payments, safeguarding the integrity of Europe’s financial system.