Risks to open banking due to scope of AML legislation

by paul

The Financial Data and Technology Association (FDATA), on behalf of its members, is asking the European Commission to amend the 5th Anti-Money Laundering Directive to remove account information services providers (AISPs) and payment initiation services providers (PISP) from its scope, as soon as the opportunity arises.

The inclusion of these services under European AML legislation was an unintended consequence of cross referencing between PSD2, CRD and AMLD4. It will very negatively impact the intended outcome of PSD2, which the Commission noted in its press release addressing frequently asked questions about PSD2 in January 2018, was to ‘help stimulate competition….[that] would then allow consumers to benefit from more and better choices between different types of payment services and service providers’.

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