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ID 1065. Access to payment systems Back

Relevant provisions

Article 9 (1) of Directive 2007/64/EC

Question

Does the Art. 9 forces european remittance companies to safe funds of their customers from outside the EU who wants to remit inside the EU?
Or is the Art. 9 to be seen as a safeguard only for european customers of european payment services?

National authorities are still not sure on this question.

Answer

Article 2(1) defines the territorial scope of the Directive, stipulating that "this Directive shall apply to payment services provided within the Community". In line with Article 4(3), "payment service" means any business activity listed in the Annex, thereby including money remittance (Annex point 6) when remitted inside the Community. While Article 2(2) states that, with the exception of one provision (Article 73, value date and availability of funds), the obligations under the provisions of Titles III and IV of the PSD shall apply only with regard to "two-leg" transactions, meaning transactions where both the payer's payment service provider and the payee's payment service provider are [...] located within the EEA, this qualification does not apply to Article 9 on safeguarding requirements. Safeguaring requirements therefore apply to all payment services covered by the Directive.

Date

Submitted on 08/08/2011

Legislative Area

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Asset management
Capital Requirements Directive
Markets in Financial Instruments Directive
Payment services

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