Changes from report parliamentary committee draft to plenary report

AddedThe ECB and national central banks, when not acting in their capacity as monetary authorities or other public authorities, may limit their offer to PSUs of a payment service of sending instant credit transfers in euro to the period of time during which they receive and send non-instant credit transfers in euro.

Added1a. Where a payment order for an instant credit transfer in euro is submitted from a payment account that is not denominated in euro, the time of receipt shall be the moment when the PSP, immediately upon receiving that payment order, converts the amount of transaction from the currency in which the payment account is denominated into euro.

Added1b. Where a package of multiple payment orders for instant credit transfers in euro has been submitted by a payer, the payer’s PSP shall upon receipt immediately begin to unpack that package. The time of receipt of an individual payment order submitted as part of a package shall be the moment when the ensuing payment transaction has been unpacked, which shall occur as soon as possible after the order has been submitted by the payer to its PSP.

Added1c. In the case of paper-based payment orders for instant credit transfers in euro, the time of receipt of such an order shall be the moment when the payer’s PSP has transposed the payment order information into its internal system, which shall occur as soon as possible after the order has been submitted by the payer to its PSP.

Added2. When carrying out instant credit transfers, PSPs shall, in addition to the requirements set out in Article 5, comply with the following requirements:

Added(a) they shall ensure that payers are able to place a payment order for an instant credit transfer through all of the same PSU interfaces as the ones through which those payers can place a payment order for other credit transfers;

Added(b) after receiving a payment order for an instant credit transfer, the payer’s PSP shall immediately verify whether all the necessary conditions for processing the payment are met and whether the necessary funds are available, reserve the amount on the account of the payer,▌ instantly send the payment transaction to the payee’s PSP, and provide, free of charge, the payer, as well as, where applicable, the intermediary payment initiation service provider, with confirmation of an executed or rejected instant credit transfer within 10 seconds of the time of receipt of the payment order;

Added(c) they shall ensure that all payment accounts that are reachable for credit transfers are reachable for instant credit transfers 24 hours a day and on any calendar day;

Added(d) after having received an instant credit transfer, the payee’s PSP shall immediately make the amount of that transaction available on the payee’s payment account in the currency in which the payee’s account is denominated.

Added2a. PSPs shall offer their PSUs the possibility of determining a maximum amount that is able to be transferred by means of instant credit transfer. PSPs shall ensure that PSUs are able to modify that maximum amount at any time prior to the initiation of a payment order for an instant credit transfer. Where a PSU’s payment order for an instant credit transfer exceeds the maximum amount, the payer’s PSP shall not execute the instant credit transfer and shall notify the PSU thereof.

Added3. When providing instant credit transfers in euro, PSPs shall offer to their PSUs the possibility to submit multiple payment orders as a package, without limit, if they offer that possibility to their PSUs for other types of credit transfers.

Added4. PSPs as referred to in paragraph 1 that are located in a Member State whose currency is the euro shall offer PSUs the service of receiving instant credit transfers in euro by … [PO please insert the date = 6 months after the date of entry into force of this Regulation], and the service of sending instant credit transfers in euro by … [PO please insert the date = 12 months after the date of entry into force of this Regulation]. PSPs that are electronic money institutions as defined in Article 2, point (1), of Directive 2009/110/EC or payment institutions as defined in Article 4, point (4), of Directive (EU) 2015/2366 and that are located in a Member State whose currency is the euro shall offer PSUs the service of sending and receiving instant credit transfers in euro by ... [18 months after the date of entry into force of this amending Regulation].

AddedPSPs as referred to in paragraph 1 located in a Member State whose currency is not the euro shall offer PSUs the service of receiving instant credit transfers in euro by …[ PO please insert the date = 30 months after the date of entry into force of this Regulation], and the service of sending instant credit transfers in euro by …[ PO please insert the date = 36 months after the date of entry into force of this Regulation].

AddedCharges in respect of instant credit transfers

Added1. Any charges applied by a PSP on payers and payees in respect of sending and receiving instant credit transfer transactions in euro shall not be higher than the charges applied by that PSP in respect of sending and receiving other, corresponding, credit transfer transactions in euro.

Added1a. PSPs shall not increase, directly or indirectly, their charges in respect of sending and receiving other, corresponding, credit transfer transactions in euro with the aim of circumventing paragraph 1.

AddedCompetent authorities may, where they suspect that a PSP is engaged in a circumvention practice referred to in the first subparagraph, request from that PSP any information they deem necessary to determine whether that PSP has engaged in such practice and shall take all necessary measures to ensure compliance by that PSP with this Article.

Added1b. EBA shall submit a report to the European Parliament, to the Council and to the Commission by … [four years after the date of entry into force of this amending Regulation] on the impact of the application of paragraph 1 on the pricing of credit transfers and instant credit transfers. The Commission shall consider the results of that report and shall submit, where appropriate, a legislative proposal to the European Parliament and to the Council.

Added2. PSPs located in a Member State whose currency is the euro shall comply with this Article by …[ PO please insert the date = 6 months after the date of entry into force of this Regulation].

AddedPSPs located in a Member State whose currency is not the euro shall comply with this Article by …[ PO please insert the date = 30 months after the date of entry into force of this Regulation].

AddedVerification of a payee in the case of ▌credit transfers

Added1. With regard to regular and instant credit transfers, a payer’s PSP shall verify whether the payment account identifier and the name of the payee provided by the payer match. Such verification shall be provided free of charge to PSUs and regardless of the PSU interface used by the payer to place a payment order for an instant credit transfer. The payer’s PSP shall immediately notify the payer of any discrepancies detected and the degree of match as follows:

Added(a) ‘match’, meaning that no discrepancy is detected between the payment account identifier and the name of the payee;

Added(b) ‘close match’, meaning that the name of the payee almost matches with the payment account identifier provided. In such cases, the PSP shall indicate to the payer the name of the payee associated to the payment account identifier provided;

Added(c) ‘no match’, meaning that the name and the payment account identifier do not match. If the payment account identifier relates to the payment account of a natural person, the PSP shall not reveal the name of the payee associated to the payment account;

Added(d) ‘unavailable’, meaning that the payment account does not exist or could not be verified.

AddedPSPs shall provide that service immediately after the payer provided to its PSP the payment account identifier of the payee and the name of the payee, and before the payer is offered the possibility to authorise the instant credit transfer.

AddedWhere a payee is a legal entity and a PSU interface allows the payer to place a payment order by providing the payment account identifier of the payee, together with data elements other than the name of the payee that unambiguously identify the payee, such as a fiscal number, a European unique identifier as referred to in Article 16(1), second subparagraph, of Directive (EU) 2017/1132, or an LEI, and where such data elements are available to the payee’s PSP, the payer’s PSP shall fulfil the obligation in the first subparagraph of this paragraph based on those data elements.

Added1a. By way of derogation from paragraph 1, where a PSP provides a PSU interface that does not require the payer to insert both the payment account identifier and the name of the payee, the PSP shall ensure that the payee designated by the payer is unambiguously identified. For that purpose, the payer shall have the right to validate the identity of the payee provided by the PSP before authorising the instant credit transfer.

AddedWhere the payment account identifier or the name of the payee is provided on behalf of the payer by a payment initiation service provider as defined in Article 4, point (18), of Directive (EU) 2015/2366, that payment initiation service provider shall ensure that the information concerning the payee is correct.

AddedPSPs and payment initiation service providers shall, for the purposes of the first and second subparagraphs respectively, maintain robust internal procedures to ensure that the information concerning payees is correct. Each Member State shall designate one or more national competent authorities with the power to investigate the robustness of such internal procedures.

AddedWhere a payment account identified through a payment account identifier provided by the payer is held on behalf of multiple payees, additional information allowing the payee to be unambiguously identified may be provided by the payer to the payer’s PSP. The payee’s PSP maintaining accounts on behalf of multiple payees shall, at the request of the payer’s PSP, confirm whether the payee indicated by the payer is among the multiple payees on whose behalf the payment account is maintained.

Added1b. A PSP shall not be held liable for the execution of an instant credit transfer in euro to an unintended payee in accordance with Article 88 of Directive (EU) 2015/2366 provided that it has fulfilled the requirements of paragraph 1 or paragraph 1a of this Article.

Added2. PSPs shall ensure that the detection and notification of a discrepancy as referred to in paragraph 1 does not prevent payers from authorising the regular or instant credit transfer concerned.

Added2a. PSPs shall inform their PSUs of the implications for PSP liability and PSU refund rights resulting from a decision by PSUs to ignore a detected and notified discrepancy as referred to in paragraph 1.

Added▌

Added4. PSPs shall inform their PSUs that authorising a transaction despite a detected and notified discrepancy, including in the form of a close match as referred to in paragraph 1, point (b), may lead to transferring the funds to a payment account not held by the payee indicated by the payer. PSPs shall provide that information at the same time as the notification of discrepancies referred to in paragraph 1. ▌

Added4a. Where the payer’s PSP fails to provide information about a discrepancy to the payer in accordance with paragraph 1, it shall compensate the payer for any financial damage caused to the payer by that failure. Where such failure occurs because the payee’s PSP has failed to provide information about a discrepancy regarding the payment account identifier or the name of the payee, the payee’s PSP shall compensate the payer’s PSP for any financial damage caused to the payer’s PSP by that failure.

Added▌

Added6. PSPs located in a Member State whose currency is the euro shall comply with this Article by …[ PO please insert the date = 12 months after the date of entry into force of this Regulation].

AddedPSPs located in a Member State whose currency is not the euro shall comply with this Article by …[ PO please insert the date = 36 months after the date of entry into force of this Regulation].

AddedScreening of PSUs with regard to Union sanctions in case of instant credit transfers

Added1. PSPs offering instant credit transfers shall verify whether any of their PSUs are listed persons or entities.

AddedPSPs shall carry out such verifications immediately after the entry into force of any new or amended restrictive measures adopted in accordance with Article 215 TFEU providing for asset freeze or prohibition of making funds or economic resources available , and at least once every calendar day.

Added2. In addition to carrying out verifications under paragraph 1, during the execution of an instant credit transfer, the payer’s PSP and the payee’s PSP involved in the execution of such transfer shall not verify whether the payer or the payee whose payment accounts are used for the execution of that instant credit transfer are listed persons or entities subject to Union restrictive measures adopted in accordance with Article 215 TFEU that provide for an asset freeze or a prohibition on making funds or economic resources available to it.

AddedThe first subparagraph of this paragraph shall be without prejudice to other restrictive measures that are not adopted in accordance with Article 215 TFEU, to Union law related to the prevention of money laundering and terrorist financing and to any other applicable Union law.

Added3. A PSP that has failed to carry out the verifications referred to in paragraph 1 and executes an instant credit transfer causing another PSP involved in the execution of that instant credit transaction to fail to freeze assets of listed persons or entities, or to make funds or economic resources available to such persons or entities, shall compensate the financial damage caused to the other PSP resulting from penalties imposed on that other PSP under restrictive measures adopted in accordance with Article 215 TFEU providing for asset freeze or prohibition of making funds or economic resources available .

Added4. PSPs shall comply with this Article by …[ PO please insert the date = 6 months after the date of entry into force of this Regulation].’

Added4a. EBA and AMLA shall prepare a joint report on potential methods for enabling PSPs that execute instant credit transfers to verify whether any of their PSUs are persons or entities designated on EU lists or national lists of Member States. Such methods may include the development of a single list aggregating persons and entities designated on Union and national lists.

AddedEBA and AMLA shall submit the joint report on their findings to the European Parliament, to the Council and to the Commission by … [6 months after the date of entry into force of this amending Regulation].

AddedOn the basis of that joint report, the Commission shall, where appropriate, submit a legislative proposal to the European Parliament and to the Council by … [12 months after the date of entry into force of this Regulation].

Added(3) in Article 11, the following paragraphs▌ are inserted:

Added‘1a. By way of derogation from paragraph 1, Member States shall by … [PO please insert the date = 4 months after the date of entry into force of this Regulation] lay down rules on the penalties applicable to infringements of Articles 5a to 5d and shall take all measures necessary to ensure that they are implemented. Such penalties shall be effective, proportionate and dissuasive.

AddedMember States shall notify the Commission of those rules and measures by … [ PO please insert the = 8 months after the date of entry into force] and shall notify it without delay of any subsequent amendment affecting them.

Added1b. With respect to penalties applicable to infringements of Article 5b and 5d, Member States shall ensure that such penalties include:

Added(a) in the case of a legal person, administrative fine with a ceiling of ▌not less than 10 % of the total annual net turnover of that legal person in the preceding business year;

Added(b) in the case of a natural person, administrative fine with a ceiling of ▌not less than EUR 5 000 000, or in the Member States whose currency is not the euro, the corresponding value in the national currency on …[PO please insert the date of entry into force of this Regulation].

AddedFor the purposes of point (a), where the legal person is a subsidiary of a parent undertaking as defined in Article 2, point (9), of Directive 2013/34/EU of the European Parliament and of the Council* or any undertaking which effectively exercises a dominant influence over that legal person, the relevant turnover shall be the turnover resulting from the consolidated accounts of the ultimate parent undertaking in the preceding business year.

Added1c. The penalties referred to in paragraph 1a of this Article shall not be applied in respect of infringements of Article 5a(2), point (c), where the payment accounts maintained by PSPs are not reachable for instant credit transfers due to planned maintenance where periods of non-availability are both foreseeable and short, to a planned downtime of all SEPA instant credit transfer (SCT Inst) scheme-based payment services or to a suspension of such services owing to a duly justified suspicion of fraud.

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