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Supplementing Directive (EU) 2015/849 of the European Parliament and of the Council with regulatory technical standards on the criteria for the appointment of central contact points for electronic money issuers and payment service providers and with rules on their functions (Text with EEA relevance.)
Recitals

Recitals

COMMISSION DELEGATED REGULATION (EU) 2018/1108

of 7 May 2018

supplementing Directive (EU) 2015/849 of the European Parliament and of the Council with regulatory technical standards on the criteria for the appointment of central contact points for electronic money issuers and payment service providers and with rules on their functions

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

  • Having regard to the Treaty on the Functioning of the European Union,
  • Having regard to Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC(1), and in particular Article 45(11) thereof,

Whereas:

  1. Electronic money issuers and payment service providers may appoint central contact points to ensure, on behalf of the appointing institutions, compliance with anti-money laundering and counter-terrorist financing rules and to facilitate supervision by competent authorities. Member States may require the appointment of a central contact point where payment service providers and electronic money issuers provide services in their territory through establishments in forms other than a branch, but not where they provide services without an establishment.
  2. The appointment of a central contact point to ensure compliance with anti-money laundering and counter-terrorist financing rules appears to be justified where the size and scale of the activities carried out by payment service providers and electronic money issuers through establishments in forms other than a branch meets or exceeds certain thresholds. Those thresholds should be set at a level that is proportionate to the aim of Directive (EU) 2015/849 to facilitate supervision by competent authorities of such establishments' compliance, on behalf of their appointing institution, with local anti-money laundering and countering the financing of terrorism (AML/CFT) obligations, while at the same time not creating undue regulatory burden on payment service providers and electronic money issuers.
  3. The requirement to appoint a central contact point appears also to be justified where a Member State considers that the risk of money laundering and terrorist financing associated with the operation of such establishments is increased, as demonstrated, for instance, on the basis of an assessment of the money laundering and terrorist financing risk associated with certain categories of payment service providers or electronic money issuers. Member States should not be required to perform a risk assessment of individual institutions for that purpose.
  4. However, in exceptional cases, where Member States have reasonable grounds to believe that the money laundering and terrorist financing risk associated with a particular payment service provider or electronic money issuer that operates establishments in their territory is high, they should be able to require that issuer or provide to appoint a central contact point, even if it does not meet the thresholds laid down in this Regulation or does not belong to a category of institutions that is required to appoint a central contact point based on the Member State's assessment of money laundering and terrorist financing risk.
  5. Where a central contact point is appointed, it should ensure, on behalf of the appointing electronic money issuer or payment services provider, the compliance by its establishments with the applicable AML/CFT rules. To that end, the central contact point should have a sound understanding of applicable AML/CFT requirements and facilitate the development and implementation of AML/CFT policies and procedures.
  6. The central contact point should, among others, have a central coordinating role between the appointing electronic money issuer or payment services provider and its establishments, and between the electronic money issuer or payment services provider and the competent authorities of the Member State where the establishments operate, to facilitate their supervision.
  7. Member States should be entitled to determine, based on their overall assessment of money laundering and terrorist financing risks associated with the activity of payment service providers and electronic money issuers that are established in their territory in forms other than a branch, that central contact points are required to perform certain additional functions as part of their duty to ensure compliance with local AML/CFT obligations. In particular, it could be appropriate for Member States to require central contact points to submit, on behalf of the appointing electronic money issuer or payment services provider, suspicious transaction reports to the Financial Intelligence Unit (FIU) of the host Member State in whose territory the obliged entity is established.
  8. It is for each Member State to determine whether or not central contact points should take a particular form. Where the form is prescribed, Member States should ensure that the requirements are proportionate and do not go beyond what is necessary to achieve the aim of compliance with AML/CFT rules and facilitate supervision.
  9. This Regulation is based on the draft regulatory technical standards by the European Supervisory Authorities (the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority) to the Commission.
  10. The European Supervisory Authorities have conducted open public consultations on the draft regulatory technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the opinion of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council(2), Regulation (EU) No 1094/2010 of the European Parliament and of the Council(3) and Regulation (EU) No 1095/2010 of the European Parliament and of the Council(4) respectively,

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