Exim still accepting emails to nonexistent users

After adding the configuration bit:

deny message = invalid recipient domains = +local_domains !verify = recipient/callout=no_cache

from: http://wiki2.dovecot.org/LMTP/Exim http://wiki2.dovecot.org/LMTP/Exim running update-exim4.conf and service exim4 restart

the server is still accepting emails to recipients that do not exist in dovecot.

Any ideas?