e-money - past present & future (clean 20 10)
TRANSCRIPT
E-Money: Past, Present & Future(?)
Philippe De Prez Lawyer - Simont Braun
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Key elements
E-money •Electronically stored / represented by a claim / issued on receipt of funds / for payment transactions / accepted by others than the e-money issuer (2EMD)
•Money stored electronically to spend later (FCA)
Scope exemptions
•Following the definition•Limited network exemption•Digital download exemption
Issuers •E-money institutions•Credit institutions •Various public entities
The Basics
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E-money Timeline
2000/46/EC(1EMD))
Belgian 1EMD implementation(February 2003)
2007/64/EC(PSD1)
Belgian PSD1implementation
(December 2009)
2009/110/EC(2EMD)
2015/849/EC(AMLD4)
PSD2 vote(October 2015)
2EMD review(2016?)
3EMD (?)
Belgian 2EMD implementation (November 2012)
Past, Present & Future
2000
2017/18
TODAY
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1EMD Regulation Scope of the e-money definition
•Very limited scope•Not neutral from a tech
point of view•Interpretation differences
between members states
Regulatory requirements e-money institutions•Subdivision of credit
institutions•1 MEUR initial capital•Mixed business
restriction
Unclear waiver regime
•Different implementations
•Absence of a level playing field
The Past
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1EMD review / 2EMD goalsThe Past
From minimum to maximum
harmonization
Clarify the scope
Exclude specific
instruments & services
Alignment with the PSD
prudential regime
Allow mixed business and
intermediaries
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2EMD Regulation (A)
Definition •Technical neutrality / anticipating innovation•Include card & server based e-money
Capital requirements •Lowered initial capital requirements (350K)
•Flexible own funds requirements
Business •Removal of the mixed business restriction•Distributors / agents / outsourcing
The Present
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2EMD Regulation (B)
Waiver Exemption •One remaining waiver regime (5M EUR limit)
•Limited network & digital download exemption
Redeemability •Removal of the former 10 EUR threshold•Charging of costs only in limited circumstances
AML •Exemption to comply with AML due diligence •Increase of the low value payment thresholds
The Present
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Evolution of Belgian EMI’s
2005 2010 2013 2015
0
2 2
5
0
5
7
5
Belgian licensed EMI's Belgian light licensed EMI's
Past & Present
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The Belgian EMI landscape
2015
5
44
4 3 3 2 1
The Present
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2EMD Revision ? The Present
Revision was scheduled for
November 2012…
Late implementation
2EMD
Other regulatory
priorities (PSD2)
EU Com. Jonathan Hill’s announcement
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EMD/PSD merger? The Future
Regulatory merger
between EMD & PSD ?
2EMD is already an alignment with PSD1
2EMD contains
numerous references to PSD 1
Both PSI’s and EMI’s
offer payment services
Difference PSD and EMD is blurred
Both scheduled for review November
2012
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PSD2 impact (A)
Limited network exemption
Narrowing the existing exemption
From limited to very limited
Specific social or tax purposes
Notification duty
The Future
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PSD2 impact (B)
Digital download exemption
Digital content & voice based services
E-tickets & charity
€50/transaction€300/month
Notification duty
The Future
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AMLD4 impactAMLD3regime
AMLD4regime
Maximum redemption < = 100 EUR / redemption
250 EUR/monthtransaction value
Reloadable instruments
250 EUR maximum storage on
all instruments
Maximum redemption< 1000 EUR / year
2500 EUR/year transaction value
Reloadable instruments
250 EURmaximum storage on
non reloadable instruments
The Future
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Virtual Currency(?)The Future
E-money definition… applied on virtual currency
Electronically stored monetary value
Represented by a claim on the issuer
Issued on receipt of funds
For the purpose of making payment transactions
Accepted by other entities than the issuer
3EMD scope ?
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Take Away
+15 years regulatory evolution
EMD |PSD interaction
PSD2, AMLD4Impact
3EMDScope ?
The end…
