BaFin Consultation 04/2014

Electronic Money Association e.V. Response to
BaFin Consultation 04/2014
GW 1-GW 2001-2008/0003:
‚Entwurf eines Rundschreibens zu
geldwäscherechtlichen Pflichten’
Electronic Money Association e.V.
4 July 2014
Electronic Money Association e.V.
℅ Retailo AG
Kaiser-Wilhelm-Ring 13
50672 Köln
Eingetragener Verein
Amtsgericht Düsseldorf
VR 10723
Vorsitzender: Dr. Thaer Sabri
Tel. +44 20 8399 2066
Fax +44 87 0762 5064
[email protected]
www.e-ma.org
EMA response to consultation 04/2014
Preface
The EMA is the trade body representing electronic money issuers and payment service providers.
A list of EMA members is provided in the Annex to this document.
Members of the EMA offering services in Germany are directly impacted by the guidance on the
scope of the money laundering obligations in the consultation. The proposed approach is also
likely to impact consumers in Germany. We believe it is important therefore to consider the
issues raised by our members in this regard.
Thank you for the opportunity to respond, and we remain at your disposal to answer any
questions or to provide clarification.
Sincerely
Thaer Sabri
Chief Executive
Electronic Money Association
Page 2 of 7
EMA response to consultation 04/2014
I. Umfang der Sorgfaltspflichten gemäß § 3 Abs. 1 Nr. 4 GwG bzw. § 25h Abs. 2
KWG für Verpflichtete gemäß § 2 Abs. 1 Nr. 1 - 2c, Nr. 4 und Nr. 6 GwG
Response:
The EMA concurs that monitoring should extend to both the business relationship that an issuer
has with its customers and also to transactions. The manner and degree of monitoring, such as
whether transactions are made on behalf of a third party, should however be risk based. There is
for example little benefit in seeking to establish whether there is a beneficial owner when a
prepaid card is used to make purchases of goods and services in the normal course of business.
Where there are other indicators that suggest increased risk, there may be a basis for further
investigation.
II - Laufende Überwachung im Zusammenhang mit der Herausgabe von
sogenannten „Prepaid-Kreditkarten“ für Verpflichtete gemäß § 2 Abs. 1 Nr. 1
und 2c GwG
(. . .) Bei der Ausgabe und dem Laden von „Prepaid-Kreditkarten“ sowie bei der Abwicklung der
Zahlungen in diesem Zusammenhang sind die Kundensorgfaltspflichten gemäß § 3 Abs. 1 Nr. 1
(Identifizierung des Vertragspartners) bzw. Nr. 4 („Monitoring“) GwG einzuhalten –
unabhängig
davon,
ob
die
Aufladung
der
„Prepaid-Kreditkarte“
unmittelbar über ein individuelles Zahlungskonto des Karteninhabers bei
dem emittierenden Institut oder z.B. über ein (Sammeltreuhand-) Konto
erfolgt, von dem aus dem Karteninhaber die eingehenden Beträge auf
einem internen „Schattenkonto“ zugerechnet werden. Beide vorgenannten
Kundensorgfaltspflichten sind unter der Verantwortung des Geldwäschebeauftragten zu erfüllen.
(. . .)
Response:
We are not entirely clear on the analysis in respect of the difference between the different means
of funding. We are however in agreement on the need for monitoring to include the entire emoney payment chain, from funding to redemption. We do however stress again the need for a
risk based approach, which seeks to allocate resources to those parts of the system that pose the
greater risk. Issuers and others should be able to apply a risk based approach in respect of
monitoring, in accordance with FATF Recommendations, EU and German legislation.
Page 3 of 7
EMA response to consultation 04/2014
III - Führen von Sammeltreuhandkonten für E-Geld-Herausgeber durch
Verpflichtete gemäß § 2 Abs. 1 Nr. 1 GwG
Aus gegebenem Anlass weise ich darauf hin, dass ein Kreditinstitut als EGeld-Agent einzustufen ist, wenn es für einen E-Geld-Herausgeber ein
(Sammeltreu-hand-) Konto führt, über das E-Geld-Produkte aufgeladen
und/oder E-Geld zurückgetauscht wird (im Folgenden: „Aufladekonto“).
Die Definition der Tätigkeiten eines E-Geld-Agenten, nämlich „Vertrieb und Rücktausch von EGeld“, ist vom Gesetzgeber in § 1a Abs. 6 ZAG in Umsetzung der Zweiten E-Geld- Richtlinie weit
gefasst worden: danach erfasst der Tätigkeitsbereich des E-Geld-Agenten den Verkauf oder
Wiederverkauf von E-Geld-Produkten an das Publikum, die Bereitstellung eines Vertriebskanals
für E-Geld an Kunden oder die Einlösung von E-Geld auf Bitten des Kunden bzw. die Aufladung
von E-Geld-Produkten für Kunden (vgl. BT-Drs. 17/3023, S. 41).
(. . .) macht die Gesetzesbegründung deutlich, dass alle inländischen
Unternehmen in der Vertriebskette erfasst sein sollen (vgl. BT-Drs. 17/6804,
S. 26). ( . . . )
Response
E-money is a payment instrument that is purchased from an e-money issuer. Payment for the emoney, extinguishes the payment obligation that the customer has for the e-money that was
issued.
When an issuer utilises a bank account into which consumers can make payments, the consumers
are making purchases from the issuer, and the bank’s involvement is simply that of facilitating
payment to the e-money issuer. It acts as a payment service provider to the e-money issuer, a
service for which it is authorised. It is not involved in the underlying distribution of e-money and
will not usually have any relationship with the customers. IF the bank was involved in the
distribution of e-money, its contract with the e-money issuer would have to set this out. To our
knowledge, there are no such contractual provisions for any of these accounts.
The bank’s contract with the e-money issuer will be one of providing banking services, in the
same way as it does to any other customer, a service for which it is authorised. Such banks do
not enter into distribution or agency agreements with the e-money issuer.
It does not make sense therefore to propose that the bank takes on obligations in relation to the
business of the e-money issuer, and specifically in relation to the e-money issuer’s customers,
with whom it has no business relationship.
Page 4 of 7
EMA response to consultation 04/2014
This is in contrast for example with the business of distributors who act as either resellers of emoney or as commercial agents for the purpose of selling e-money. Selling e-money involves
transferring title to the e-money, as well as receiving payment for it. In other words distributors
are involved in both the underlying transaction (transferring title to the e-money) and payment in
consideration for the sale of e-money.
Providing banking services on the other hand is simply facilitating the transfer of funds, on behalf
of payment service users, in this case the e-money issuer irrespective of the underlying
transaction. If banks were to be regarded as involved in underlying transactions, the business of
banking would become impossible to administer: an account held for an insurance provider may
then require it to act as an insurance intermediary; or an account for a gambling provider require
a gaming license; or for an alcohol licensed premise, an alcohol license. This is clearly not the
intention of the regulator, and it makes little sense to apply it to the business of issuing e-money.
Credit institutions that provide banking services to e-money issuers, simply provide payment
services within the scope of their own license, and have AML obligations in relation to their own
customers. In this context their customer is the e-money issuer. They are not involved in the
underlying transaction, that of the sale of e-money. They should not therefore be brought within
the scope of AML as it applies to e-money issuers or distributors (agents under German law). The
bank has no business relationship with e-money users themselves.
The bank is not the issuer nor distributor, and nor does it act as an agent of the issuer in any way.
It acts as a payment service provider for the e-money issuer.
Additionally, the consultation text states on page 5:
“Denn gemäß § 3 Abs. 2 S. 3 GwG haben die E-Geld-Agenten eines inländischen wie
ausländischen E-Geld- Herausgebers eine eigene Pflicht, die Kundensorgfaltspflichten gemäß § 3
Abs. 1 Nr. 1 und 4, § 7 Abs. 1 und 2 und § 8 GwG zu erfüllen. Das bedeutet, dass auch ein
Kreditinstitut im Rahmen der Führung eines „Aufladekontos“ die E-Geld-Inhaber, d.h. die
Einzahler, zu identifizieren hat.”
We would again like to state that a ‘credit institution offering a load account’, is simply acting as
payment service provider to the e-money issuer. The funds that reside in the bank account are
those of the e-money issuer and not of the consumers. The consumer will have been given title to
the e-money value that they have purchased, and money residing in such funding or pooled
accounts is that of the e-money issuer. The relevant customer for the bank is the e-money issuer,
and not the consumers. This is consistent, and in common with all banks offering acquiring
services.
Page 5 of 7
EMA response to consultation 04/2014
The EMA would also like to state more generally, that AML regulation for businesses passporting
on a cross border basis falls within the domain of the home member state, and not that of the
host. This is also consistent with the views expressed by the Financial Committee of the German
Bundestag in its report (BT-Drs 17/11416, p 10) which stated that compliance with home
member state CDD provisions was sufficient. There should therefore be no need to introduce
additional AML provisions to capture customer due diligence information which is already
captured by the e-money issuer itself.
Page 6 of 7
EMA response to consultation 04/2014
Annex
List of EMA members as of July 2014:
3Omlti Ltd
Optimal Payments
Advanced Payment Solutions Ltd
Orwell Union Partners LLP
American Express
PayPal Europe Ltd
Blackhawk Network Ltd
PayPoint Plc
Boku Inc
PayU
Citadel Commerce UK Ltd
Paywizard
ClickandBuy International Ltd
PPRO Financial Ltd
Cornèr Banca SA
Prepaid Services Company Limited
Eukantia EDE, S.L
PrePay Technologies Limited
Emoney, s.r.o.
PSI-Pay Ltd
Euronet Worldwide Inc
R. Raphael & Sons plc
Ewire Danmark A/S
Securiclick Limited
Facebook Payments International Ltd
Skrill Limited
Google Payment Ltd
Syspay Ltd
iCheque Network Ltd
Transact Payments Limited
IDT Financial Services Limited
Ukash
Ixaris Systems Ltd
Wave Crest Holdings Ltd
Kalixa Pay Ltd
Wirecard AG
National Australia Group
Worldpay UK Limited
Novum Bank Ltd
Yandex.Money
One Money Mail Ltd
Page 7 of 7