Ministry of Finance in Germany comments on new obligations for payment service providers

First, the BMF clarifies practical questions regarding the material scope of the new obligations. Accordingly, cross-border payments only include payments where the payer is located in a European Union Member State, whereas the payee can also be located in a third country. Only domestic payments and payments made from third countries are excluded.

The BMF also clarifies the calculation of the minimum threshold of 25 cross-border payments. It must be calculated individually for each Member State. If the threshold is exceeded, all payments must be reported and not just those that exceed the threshold.

Moreover, the BMF clarifies that the data must be transmitted at the latest by the end of the calendar month following the quarter to which the data relates. For the first quarter of 2024, the BMF will exceptionally not raise any objections if this report is submitted by 31 July 2024. Originally this report should have been submitted by end of April.

Finally, the BMF also points out possible sanctions in the event of non-compliance with the new regulations. Fines of up to EUR5,000 can be charged.

Key takeaway

The BMF addresses a number of practical concerns regarding the new regulations for payment service providers in its circular. The payment service providers involved should nonetheless familiarise themselves with the new regulations and, in particular, retain records, even though the BMF has extended the deadline for the first report. Have a look at our in-depth article on the topic to learn more about this topic by clicking here:

Our in-depth analysis on this topic can be read here.

Reference: BMF-Schreiben vom 28.12.2023