EU: EBF responds to Commission inception impact assessment on instant payments
The European Banking Federation ('EBF') released, on 9 April 2021, its response to the European Commission's consultation, titled inception impact assessment on instant payments. In particular, the EBF highlighted that it supports effort to increase the update of Single Europe Payments Area's ('SEPA') Instant Credit Transfer ('SCT Inst') scheme and that it may facilitate stronger EU payment solutions. Furthermore, the response outlines that, when encouraging initiatives on a further deployment of instant payments, cybersecurity, fraud prevention, and anti-money laundering risk management are crucial. As such, the response states that the Commission should address this within the consultation by asking whether the market sees any legal barriers in existing measures related to instant payments.
Moreover, the response notes that the current sanctions screening rules at EU and Member State level do not support the wide adoption of instant payments, especially in a cross-border context.
In addition, regarding compliance, the response calls on EU banks to adhere to a voluntary basis to the SCT Inst scheme, but that, if legislative action is taken to ensure adherence to SCT Inst, it should not be included in existing legislation not suited for such purposes, such as the Payment Services Directive ((EU) 2015/2366) ('PSD2').