/regulation & compliance

News and resources on regulation, compliance, legal and governance issues for banks and fintechs.
Banks seek clarification on EBA e-money rules

Banks seek clarification on EBA e-money rules

Banks from nine EU countries have endorsed a note seeking clarification on the definition of e-money transactions and the related fraud reporting requirements issued by the European Banking Authority.

The European Banking Authority’s Guidelines on Fraud Reporting under PSD2 require banks and other payment service providers (PSPs) to distinctly report fraudulent e-money payment transactions to their national competent authorities, but they do not specify in detail which transactions fall under the e-money definition from the 2009 E-money Directive they refer to.

Thomas Egner, secretary general of the Euro Banking Association, says: “The current definitions of e-money provided by the European authorities are not clear enough and would benefit from a detailed review. This is what the bank experts in our workshops on the EBA Fraud Reporting Guidelines concluded when they tried to match these definitions to today’s market reality in terms of payment instruments and products.”

The EBA's e-money guidelines are already being applied across EU member states, but as the Euro Banking Association notes, fraudulent prepaid card transactions are the only transactions that can be reported in the e-money category provided by the EBA Fraud Reporting Guidelines.

Says Egner: "It would be helpful if this requirement could be further clarified and applied in a uniform way across Europe.”

Comments: (0)