European Parliament Passes the Instant Payments Regulations

Payment Service Providers (PSPs) will be required to:

• Implement robust and up-to-date fraud detection and prevention measures, to avoid credit transfers going into the wrong account due to fraud or error;
• Provide a service to verify the identity of the recipient;
• Allow their clients to set a maximum amount for instant credit transfers in euro, which could be easily modified prior to the next transfer; and
• Verify whether any of their clients are subject to sanctions or other restrictive measures related to money laundering and terrorist financing.

Once in force, PSPs located in the euro area will have 9 months to be ready to receive instant credit transfers in euro and 18 months to send them.