PSD2 and the new Payment Systems Act
The PSD2 Directive has been implemented into Czech law by the new Act on Payment Systems, no. 370/2017 Coll., which will come into effect on 13 January 2018.
The Payment Systems Act introduces a number of new obligations for:
- Payment institutions and small-scale payment service providers,
- Electronic money institutions and small-scale electronic money issuers,
- Applicants for CNB licenses, and
- Foreign payment service providers.
Small-scale payment service providers and small-scale electronic money issuers must comply with the new act within nine months, otherwise the CNB will revoke their license. They must, among other things:
- Establish a system for managing security and operational risks and a system for handling complaints and user claims,
- Demonstrate the trustworthiness of persons having a qualifying holding in them.
Payment institutions and electronic money institutions must comply with the new act within three months, otherwise the CNB will revoke the license.
A new feature for CNB payment and electronic money institution license applicants is that at least part of their business relating to the provision of payment services must be operated in the Czech Republic.
In addition, companies that provide online payment initiation services (PIS) and account information services (AIS) will now need to apply for a CNB license (an account information service provider license will become available for the latter service).
All payment service providers are also required to make their business terms and all contractual documentation compliant with the act.
Moreover, we would like to inform you that the Financial Analytical Office focuses on the inspection of AML obligations, especially with payment service providers and service providers relating to cryptocurrencies. We, therefore, recommend a thorough review of the internal procedures for fulfilling AML obligations (client identification and due diligence, reporting of suspicious transactions, etc.)
The attorneys at Stuchlíková & Partners have been involved in payment transactions for many years and have successfully acquired seven CNB licenses for their clients. We would be happy to assist you in implementing the new rules under the Payment Systems Act.
Should you be interested in further information, please do not hesitate to contact us at info@stuchlikova.com.