The Joint Committee of the European Supervisory Authorities (ESAs) have published final guidelines under Article 25 of the Regulation on information accompanying transfers of funds (the Regulation).
Through the final guidelines, the ESAs aim to promote the development of a common understanding, by payment services providers (PSPs) and Member State competent authorities across the EU, of what effective procedures to detect and manage transfers of funds that lack required information on the payer and the payee are, and how they should be applied. A common understanding is essential to ensure the consistent application of EU law, it is also conducive to a stronger European anti-money laundering and countering the financing of terrorism regime.
The final guidelines:
- help PSPs and intermediary PSPs (IPSPs) determine which transfers of funds are within the scope of the Regulation, and how to benefit from the exemptions in Article 2 of the Regulation;
- provide PSPs and IPSPs with tools to establish and implement effective procedures to detect transfers of funds that lack required information on the payer or the payee, and to follow up should this be necessary;
- set out the risk factors PSPs and IPSPs should consider when determining whether to execute, reject or suspend a transfer of funds which lacks required information on the payer or the payee, including when assessing whether or not the lack of information gives rise to suspicion of money laundering / terrorist financing; and
- help Member State competent authorities assess whether or not the procedures PSPs and IPSPs have put in place to comply with Articles 7, 8, 11 and 12 of the Regulation are adequate and effective.
The final guidelines build on the Common understanding of the obligations imposed by European Regulation 1781/2006 on the information on the payer accompanying funds transfers to payment service providers of payees which was adopted in October 2008.
The final guidelines apply six months after the date of their issue.