Review of the regulatory environment relative to Money Transfer ...

I) Specific clarifications regarding money remittance in the PSDPSD is providing specific clarifications regarding money remittance in its introductory paragraphs:• Remittance is a payment service falling into PSD regulation. As consequences, moneytransfer operators must be PSP and as such, could be registered as a Payment Institution.• Remittance services are subject to a maximum of one day execution time• Remittance services provided by Payment Institution are submitted to FAFT regulations.Being non FAFT compliant could prevent them for being registered as PaymentInstitution by competent authorities.• However remittance services when provided by Payment Institutions could benefit froma waiver and may be exempted of conditions for authorisation as payment institutions ifstrict requirements relating to the volume of payment transactions are met. So PSPunable to meet all FAFT regulation may nevertheless be treated (registered) as paymentinstitutions, if they are recording a low volume of transactions.Clarifications regarding money remittance as mentioned in the introductory paragraphs of PSD(7) Money remittance is a simple payment service that is usually based on cash provided by a payer toa payment service provider, which remits the corresponding amount for example via communicationnetwork, to a payee or to another payment service provider acting on behalf of the payee.(15) Given the desirability of registering the identity and whereabouts of all persons providingremittance services and of according them all a measure of acceptance, irrespective of whether theyare able to meet the full range of conditions for authorisation as payment institutions, so that noneare forced into the black economy and bring all persons providing remittance service within the ambitof certain minimum legal and regulatory requirements, it is appropriate and in line with the rationaleof Special Recommendation VI of the Financial Action Task Force on Money Laundering to provide amechanism whereby payment service providers unable to meet all those conditions may neverthelessbe treated as payment institutions.For those purposes, Member States should enter such persons in the register of payment institutionswhile not applying all or part of the conditions for authorisation. However, it is essential to make thepossibility of waiver subject to strict requirements relating to the volume of payment transactions.Payment institutions benefiting from a waiver should have neither the right of establishment nor thefreedom to provide services, nor should they indirectly exercise those rights when being a member ofa payment system.(43) In order to improve the efficiency of payments throughout the Community, all payment ordersinitiated by the payer and denominated in euro or the currency of a Member State outside the euroarea, including credit transfers and money remittances, should be subject to a maximum one-dayexecution time.(58) Money remittance is defined in this Directive as a payment service which requires anauthorisation for a payment institution or a registration for some natural or legal persons benefitingfrom a waiver clause under certain circumstances specified in the provisions of this Directive.Regulatory framework: Implementation of Mobile Money Transfer services - June 2009 -45