Effective since 26th June 2017, the EU Funds Transfer Regulation 2015 (FTR 2015) sets out to ensure the traceability of payments transactions, which is a powerful tool in the prevention, detection, and investigation of money laundering and terrorist financing. But with its implementation comes unexpected hurdles for payment service providers (PSPs).
Writing for Finextra, Christian Westerhaus, Head of Product & Strategy, Institutional Cash Management, Deutsche Bank, outlines the evolving requirements – as well the ambiguities that have arisen during the regulation’s public consultancy phase. Westerhaus believes that, unless the regulation becomes crystal clear, FTR 2015’s regulatory efficacy may be under threat.
He writes: “A common understanding among financial institutions and regulators of the scope and requirements of FTR 2015 will be necessary to help address industry concerns around AML and CTF and to prevent unnecessary payment disruption. It is important, therefore, that PSPs collaborate with each other and the regulators in order to create this common understanding – sooner rather than later.”
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