Art. 11 Detection of missing information on the payer or the payee | Transfer of funds regulation (TFR) | AML

This article sits alongside Article 7 (which covers the same detection obligations for the payee's payment service provider) but applies specifically to intermediary payment service providers — those who sit in the middle of a transfer chain rather than acting directly for the payer or payee.

It requires intermediaries to put in place procedures to check two things: first, that the payer and payee information fields in the messaging or payment settlement system have been filled in correctly using admissible characters; and second, that the required information is not missing altogether.

The level of information that must be present varies depending on whether the payment service providers at either end of the chain are established inside or outside the Union, with fuller information requirements applying to cross-border scenarios.

Important points:

Implement effective detection procedures to identify both incorrectly formatted and missing payer and payee information on transfers you receive and transmit.
The required information standard differs based on geography: transfers where both originating and receiving payment service providers are within the Union are held to the standard set out in Article 5, while those involving a party outside the Union must meet the fuller requirements of Article 4.
The same detection obligations apply to batch file transfers where the payer's or payee's payment service provider is established outside the Union.

1. The intermediary payment service provider shall implement effective procedures to detect whether the fields relating to the information on the payer and the payee in the messaging or payment and settlement system used to effect the transfer of funds have been filled in using characters or inputs admissible in accordance with the conventions of that system.
1. The intermediary payment service provider shall implement effective procedures, including, where appropriate, monitoring after or during the transfers, in order to detect whether the following information on the payer or the payee is missing:
  1. for transfers of funds where the payment service providers of the payer and the payee are established in the Union, the information referred to in Article 5;
  2. for transfers of funds where the payment service provider of the payer or of the payee is established outside the Union, the information referred to in Article 4(1), points (a), (b) and (c), and Article 4(2), points (a) and (b);
  3. for batch file transfers where the payment service provider of the payer or of the payee is established outside the Union, the information referred to in Article 4(1), points (a), (b) and (c), and Article 4(2), points (a) and (b), in respect of that batch file transfer.