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“A lack of clarity over FTR 2015 could harm payment flows” writes Deutsche Bank’s Stefan Fruschki for Global Banking and Finance Review

To strengthen the European payments industry’s efforts to combat money laundering and terrorist financing, the EU Funds Transfer Regulation 2015 (FTR 2015) came into effect on 26th June 2017.

There is more to FTR 2015 than meets the eye, however. Concerns are mounting that FTR’s obligations are, in places, open to interpretation. Writing for Global Banking and Finance Review, Deutsche Bank’s Stefan Fruschki, Head of Regulatory Management, Institutional Cash Management, believes that if this lack of clarity goes unchallenged, there could be numerous repercussions for the payments sphere. These include inadvertent regulatory breaches and disciplinary action against senior managers (who are personally liable for the regulation’s observance).

“By evaluating FTR 2015’s implications, what becomes apparent is that financial institutions must not underestimate the scale of the incoming procedural change,” says Fruschki. “The danger, of course, is that PSPs are underprepared – deeming the changes more a minor evolution, rather than revolution. And given that the consequences of non-compliance are severe – above all for society – this is even more crucial.”

To read the full article, please click here.

 

 

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