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Capital Requirements Directive
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ID 996. E-money
General question on Directive 2007/64/EC
General question on Directive 2009/110/EC
Is it correct to say that one of the necessary characteristics of electronic money is that an electronic money holder must be able to make all types of payment transactions i.e. placing, transferring or withdrawing funds?
As stated in the definition from article 2(2) of the E-Money Directive 2009/110/EC (EMD): "‘electronic money’ means electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions as defined in point 5 of Article 4 of Directive 2007/64/EC, and which is accepted by a natural or legal person other than the electronic money issuer".
Furthermore according to article 4(5) of the Payment Services Directive 2007/64/EC (PSD) : ""payment transaction" means an act, initiated by the payer or by the payee, of placing, transferring or withdrawing funds, irrespective of any underlying obligations between the payer and the payee".
Considering these two provisions, electronic money can be used, depending on the business model of the e-money institution, to make only one type of the payment transactions defined in article 4(5) of the PSD, as well as two or all of them.
Submitted on 03/02/2011