Information on the payer accompanying transfers of funds
As part of the EU Action Plan for combating terrorism, the proposal in question lays down rules aimed at establishing the traceability of transfers of funds which are applicable to all the payment service providers involved in the payment chain.
This Regulation lays down rules aimed at establishing the traceability of transfers of funds *. These rules will be applicable to all payment service providers (PSP) involved in the payment chain. The This Regulation aims to transpose into Community legislation Special Recommendation VII on "wire transfers" (SR VII) of the Financial Action Task Force (FATF *).
The Regulation does not apply to transfers of funds * which flow from a commercial transaction carried out using a credit or debit card or any other similar payment instrument, provided that a unique identifier allowing the transaction to be traced back to the payer accompanies all transfers of funds flowing from that commercial transaction and that the beneficiary has entered into agreement with the payment service provider enabling the payment of the provision of goods and services.
Furthermore, under the same conditions as the previous point, this regulation does not apply to transfers of funds carried out via a mobile telephone or any other digital device or linked to IT, when the payments are post paid and insofar as the payment service provider must comply with obligations stated by Directive 2005/60/EC.
Under the Regulation, the payer's payment service provider * (PSP) must ensure that transfers of funds contain complete, accurate and meaningful information on the payer. Any intermediary PSP must also ensure that all information on the payer that accompanies a transfer is transferred with it or retained in an appropriate manner.
In turn, any payment service provider * of the payer must report suspicious transactions to the authorities responsible for combating money laundering and terrorist financing. The payee's PSP must be able to detect a lack of presence of information on the payer when receiving transfers and must take appropriate steps to correct this situation (refuse the transfer or ask for further information) so that received transfers of funds do not remain anonymous.
Accordingly, the name, address and account number of the person ordering the payment must always accompany the transfer. Access to this information will be granted to the competent authorities only for the purposes of preventing, investigating, detecting and prosecuting money laundering or terrorist financing.
An open consultation exercise on this Regulation was conducted online between 2 December 2003 and 15 February 2004. The Commission received 103 replies. The results are available on the website of the Directorate-General for the Internal Market.
Context: combating terrorist financing
In the European Union's revised Plan of Action to Combat Terrorism (PDF ) of 18 June 2004, the Council emphasised the importance of adopting measures designed to prevent the phenomenon of terrorist financing. The European Council of 25 March 2004 called on the Member States "to increase cooperation between national competent authorities, financial intelligence units and private financial institutions to facilitate improved exchange of information on terrorist financing".
In that same statement, the Council also asked the Commission to consider improvements on the regulation and transparency of non-profit bodies so as to prevent them from being used by terrorists to acquire funding for their activities.
For its part, the Commission adopted a communicationon prevention in this field in October 2004 and unveiled in December of that year the Union's strategy for combating terrorist financing. This document, drawn up on the basis of the proposals made jointly by the Commission and the Secretary-General High Representative, takes stock of measures implemented in this field and contains a list of recommendations for strengthening action by the Union.
|Key terms used in the act|
|Act||Entry into force - Date of expiry||Deadline for transposition in the Member States||Official Journal|
|Regulation on information on the payer accompanying transfers of funds||1.1.07||-||OJ L 345 of 8 December 2006|
For any further information:
"Freedom, security and justice" website of the JHA Directorate-General of the European Commission
- Terrorism financing - European Commission
"The EU Single Market" website of the Internal market Directorate-General of the European Commission:
"Area of security, freedom and justice" website of the European Parliament:
- Subject: combating terrorism
Website of the EU Council:
Council website on the Financial Action Task Force (FATF):