The revised Wire Transfer Regulation (2WTR) covers fund transfers, in any currency, sent or received by a payment service provider (including intermediaries) established in an EU Member State. The regulation aims to prevent terrorists and other criminals from accessing payment systems for transferring their funds. The revised Wire Transfer Regulation will apply in member states from 26 June 2017, at which time it will repeal and replace the existing regime.
The initial Wire Transfer Regulation came into force in 2007 and required payment service providers to ensure that electronic fund transfers included sufficient information on the person making the payment (the payer). The updated Wire Transfer Regulation increases the regulatory burden on firms in a number of ways. The key changes are set out below:
- The biggest change under 2WTR is the obligation to include payee information. This includes the name of the payee and the payee’s account number
- Information must also be included for fund transfers to a non-EU recipient or intermediary institution
- There are also new requirements in relation to what information must accompany fund transfers. This includes the name of the payer, the payer’s account number, the payer’s address, official ID document number, customer identification number and place of birth
There are also further requirements around a responsibility for firms to reject transactions which are identified as missing the required payer or payee information. Finally, records of payer and payee information and details as to how transactions with missing information were handled must be kept for 5 years.
These changes provide a trigger for firms to assess their processes and plan for the required changes needed to meet the increased regulatory burden in 2017 when 2WTR is implemented across the EU.
How we can help
Our experts at Bovill can assist firms with the following:
- assessing where firms have gaps in relation to the new requirements
- implementing any changes that are required as a result, this may include
- updating and implementing policies and procedures
- designing and delivering training to staff.