Question ID
2018_4117
Legal act
Directive 2015/2366/EU (PSD2)
Topic
Strong customer authentication and common and secure communication (incl. access)
Article
66
Paragraph
4
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
Not applicable
Name of institution / submitter
European Association of Co-operative Banks
Country of incorporation / residence
Belgium
Type of submitter
Industry association
Subject matter
Sanctions list screening in the context of TPPs' services - risk management policy
Question

Is the Account Servicing Payment Service Provider (ASPSP) obliged to recognise if a Third Party Payment Service Providers (TPP) is named on a sanctions list or even take some actions when the TPP becomes a designated entity? How the prohibition of directly or indirectly making funds or economic resources available to designated persons and entities is defined in this context?

Background on the question

In general, ASPSPs have different kinds of risk management policies relating to entities included in the sanctions list -i.e. designated persons/entities. Some ASPSPs may have stricter rules than others. Normally, ASPSPs refuse any commercial activity with individuals named on the sanctions list and halt any transaction which has been already initiated. In the end, this depends however on the outcome of the specific risk management policy.

Submission date
Final publishing date
Final answer

Directive 2015/2366/EU (PSD2) does not provide for an obligation of account servicing payment service providers (ASPSPs) to recognise if an account information service provider or a payment initiation service provider is on a so-called sanctions list. However, this is without prejudice to requirements that may derive from other legal acts, e.g. EU legislation (regulations, directives) that contain such sanctions list.

 

Disclaimer:

The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.

Status
Final Q&A
Answer prepared by
Answer prepared by the European Commission because it is a matter of interpretation of Union law.

Disclaimer

The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.