Source: OJ L 150, 9.6.2023, pp. 1–39

Article 12 Transfers of funds with missing information on the payer or the payee

Summary What does Article 12 of the Transfer of funds regulation (TFR) say?

This article is the intermediary payment service provider's counterpart to Article 8, which sets equivalent obligations for the payee's payment service provider.

Article 12 focuses specifically on what intermediary payment service providers must do when they identify missing or non-compliant payer and payee information in a transfer they are passing through the payment chain.

It covers both the immediate response to a single instance of missing information and the escalating consequences when a payment service provider repeatedly fails to supply the required data, up to and including rejecting future transfers or terminating the business relationship entirely.

Failures must also be reported to the relevant competent authority.

Important points:

Establish risk-based procedures for handling transfers of funds that are missing required payer and payee information, with the options of rejecting the transfer or requesting the missing information.
Where a payment service provider repeatedly fails to provide the required information, take escalating steps — including warnings and deadlines — before proceeding to reject future transfers or restrict or terminate the business relationship with that provider.
Report any such repeated failure, and the steps taken in response, to the competent authority responsible for monitoring anti-money laundering and counter-terrorist financing compliance.

Springlex's summary of the article, a reading aid, not a substitute for the legal text.

1. The intermediary payment service provider shall establish effective risk-based procedures for determining whether to execute, reject or suspend a transfer of funds lacking the required payer and payee information and for taking the appropriate follow-up action.
2. Where the intermediary payment service provider becomes aware, when receiving a transfer of funds, that the information referred to in Article 4(1), points (a), (b) and (c), Article 4(2), points (a) and (b), Article 5(1), or Article 6, is missing or has not been filled in using characters or inputs admissible in accordance with the conventions of the messaging or payment and settlement system as referred to in Article 7(1), that intermediary payment service provider shall on a risk-sensitive basis:
  1. reject the transfer; or
  2. request the required information on the payer and the payee before or after the transmission of the transfer of funds.
1. Where a payment service provider repeatedly fails to provide the required information on the payer or the payee, the intermediary payment service provider shall:
  1. take steps, which may initially include the issuing of warnings and setting of deadlines, before proceeding to a rejection, restriction or termination in accordance with point (b) if the required information is still not provided; or
  2. directly reject any future transfers of funds from that payment service provider or restrict or terminate its business relationship with that payment service provider.
2. The intermediary payment service provider shall report that failure, and the steps taken, to the competent authority responsible for monitoring compliance with anti-money laundering and counter-terrorist financing provisions.

Table of contents

Springlex and this text is meant purely as a documentation tool and has no legal effect. No liability is assumed for its content. The authentic version of this act is the one published in the Official Journal of the European Union.

Relevant recitals