Payment Services and new regulatory challenges
In the coming months, European Payment Service Providers will enter a phase of crucial regulatory changes. It starts with CESOP which enters into force very soon. Building on its payments and compliance experience, LUXHUB’s mission is to provide flexible services that ensure their smooth compliance.
CESOP (Central Electronic System of Payment) for Tax Reporting
From January 1st, 2024, PSPs have to identify cross-border transactions and report some of them to their National Tax Administration(s).
Strict guidelines and specifications have been imposed to PSPs, who should not overlook the complexity of transactions filtering and aggregation, conversion, and more. The regulation aims at detecting possible VAT fraud in the context of cross-border transactions and has rapidly become an important topic for credit institutions, payment institutions, EMIs, etc.
LUXHUB CESOP, which consists in an efficient reporting engine, enables PSPs to easily tackle this key challenge and, when possible, to automate the transfer of the requested file to the concerned National Tax Administration(s). As a compliance and payments expert, LUXHUB – a regulated Payment Initiation Service Provider and Support PFS – is well-equipped to support them in this new regulatory journey, building on the success of its other compliance related solutions, and notably PSD2 XS2A.
Instant Payments, PSR & IBAN-name check
The European Commission’s willingness to push for instant payments, making it “the new normal”, and the revised payment services framework in Europe will necessarily come with additional rules and regulations.
The European legislator will require PSPs that offer credit transfers in euros to provide their users with a service checking that the payee’s IBAN matches the payee’s name. And notify of any detected discrepancy.
LUXHUB recently launched its Payee Verification Platform that will benefit in scope entities: it consists in federating banks to enable real-time name and account details checking. The two different facets of the solution (“Confirmation of Payee” on the one hand, and “Account Check” on the other) cover both the sending PSP and the one that receives the payment.