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


In terms of my dissertation at university, i need a solid answer on the following questions: a) Do money remitters (such as Western Union) come under the definition of payment institutions in terms of Art. 1 (1) lit. d and are member states consequently obliged to supervise them b) even if these institutions are already subjects to a money laundering surveillance system in the specific member state?
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According to Article 10(1) of Directive 2007/64/EC (PSD - Payment Services Directive), payment institutions are obliged to obtain an authorisation as a payment institution in line with the provisions of the PSD. Article 4(4) PSD states that 'payment institution' means a legal person that has been granted authorisation in accordance with Article 10 to provide and execute payment services throughout the Community'. 'Payment service', in the meaning of Article 4(3) PSD, means any business activity listed in the Annex. Paragraph 6 of the Annex expressly stipulates that money remittance is a payment service under the PSD. Against this background, companies that provide for money remittance services, are to be considered as payment institutions that need an authorisation under the PSD and therefore have to fulfil all requirements set out in this Directive. Since those entities fall into the scope of the PSD, they have also to be supervised by the designated competent authorities at national level according to Article 20 of the PSD. Moreover, the specific surveillance regime set out in the PSD applies in addition to the existing anti money laundering surveillance. Therefore, payment institutions are supervised with regard to the requirements set out in the PSD, as well as to the legal demands of anti money laundering.


Submitted on 12/09/2011

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