The EU’s Funds Transfer Regulation requires certain information on the payer and payee to accompany electronic payments. Sometimes known as the ‘travel rule’, its purpose is to help identify and combat money laundering, terrorist financing and breaches of financial sanctions.
The FTR was among EU legislation which was retained in UK law at the end of the Brexit transition period and adapted to fit a UK-only context. However, UK PSPs have not yet had to apply this change to UK law because the FCA used its temporary transition powers to give firms time to adapt to the new UK regime.
This standstill relief ends on 31 March 2022. From this date, UK PSPs will need to ensure transfers from the UK to the EEA exceeding EUR 1,000 are accompanied by information such as the name of the payer and payee, the payer’s and payee’s payment account number, the payer’s address, official personal document number, customer identification number or date, and place of birth.
Where the funds being transferred do not exceed EUR 1,000 only the names and account numbers or a unique transaction identifier are necessary.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now