Despite the turbulent year, a major movement of regulatory and infrastructure updates planned for 2020 is following its course
The portuguese version of this article can be found at FEBRABAN’s Noomis platform in the link: https://bit.ly/bdnoomis6
The Financial Data and Technology Association (FDATA), on behalf of its members, is asking the European Commission and the European Banking Authority to urgently revisit the requirements on Secure Customer Authentication and 90-day Reauthentication, due to its extremely detrimental impact to Third Party Providers (TPPs).
Companies who have operated as TPPs pre-PSD2, as well as newer firms, have shared with us that they are contemplating returning money to shareholders because they cannot sustain their business under these circumstances.
PSD2’s political objective was to nurture those companies, improving competition, innovation and security in the EU payments market. However, currently the way 90-day Reauthentication and SCA work defeats the political objectives of PSD2, and fails to materially improve security to protect consumers.
What action can we take to help ensure the potential of open banking is maximised, for instance to support the development of new open banking services?
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’.