Reporting obligations of a branch of the EU e-money institution
First of all, it will cover the reporting obligations set out in Art. 14a-14c of the Act on Payment Services (i.e., Journal of Laws of 2019, item 298, as amended, hereinafter referred to as „UUP„). In regard to the security of payment services, UIPE will be subject to the obligations specified in art. 32f-32g UUP as well as potential liabilities resulting from art. 59is of UUP regarding reporting on the transfer of payment accounts.
The detailed scope of obligations specified in art. 14a-14c UUP, in turn, defines issued on the basis of the statutory authorization contained in art. 14d UUP Regulation of the Minister of Finance on the detailed scope and method of providing information to the National Bank of Poland by acquirers, issuers of payment instruments and issuers of electronic money (i.e. Journal of Laws of 2019 item 840, „Regulation„).
The mode and deadlines for providing information are as follows:
- As an acquirer, UIPE is obliged to provide the National Bank of Poland (hereinafter: „NBP„) with quarterly information referred to in art. 14a section 1 UUP, detailed in § 2 of the Regulation. UIPE submits them on forms from ST.01 to ST.07 contained in Annex 1 to the Regulation. This information includes the number of merchants, the number and amounts of transactions carried out, including transactions violating the law or fair trading rules, and the amount of losses caused by them. This information is provided quarterly at the end of the month following the reporting quarter, i.e. by January 31 (for the fourth quarter of the previous year), by April 30, to July 31 and by October 31.
- As the issuer of the UIPE payment instrument, it is also obliged to provide the NBP with quarterly information referred to in art. 14b section 1 UUP, detailed in § 3 of the Regulation. The transfer takes place on the forms from FN.10 to FN.20 contained in Annex 2 to the Regulation and IN.01-IN.05 contained in Annex 3 to the Regulation.
- As a publisher of electronic money, UIPE is obliged to provide the NBP with quarterly information referred to in art. 14b section 2 and art. 14c section 1 UUP. This information is provided by UIPE on forms from PD.01 to PD.05 respectively contained in Annex 4 to the Regulation.
The NBP submits this data to the Polish Financial Supervision Authority („KNF„) as soon as it is received. In practice, this information is transferred to NPB by UIPE in the XBRL format to the Payment Statistics Database system according to NBP guidelines.
You should also take into account other reporting obligations under UUP, to which UIPE may be subject.
In accordance with art. 32f UUP the UIPE is required to annually, by January 31 of the following year, provide the KNF with annual information on the assessment and update of procedures in the area of operational risk and security risk management, as well as assessment of risk mitigation measures and control mechanisms. This obligation is also connected with the regulated art. 32g of UUP, the obligation to immediately provide the KNF with information on a major operational or security incident, including of an ICT nature. The information obtained from UIPE shall be immediately provided to the European Banking Authority („EBA„) and the European Central Bank („ECB„), and if the incident is of importance to the supervisory authority of another Member State – also to that authority.
In addition, according to art. 32h of UUP UIPE annually, by January 31 of the following year, provides the KNF with annual data on fraud related to payment services, including various methods of providing payment services. Based on this data, the KNF shall provide the EBA and the ECB with aggregate data on fraud related to payment services by 30th of June of a given year, taking into account various methods of providing payment services.
The last of the reporting obligations regulated in UUP that may apply to UIPE providing services in the given scope is the obligation regulated by art. 59is of UUP. According to its content, by 31 January of a given calendar year, UIPE, provided that it participates in the transfer of the account as the transferring supplier, informs the KNF of the number of transferred payment accounts and the number of unrealized authorization to transfer a payment account in the previous calendar year, as per 31 December of the previous calendar year. On this basis, the KNF informs the European Commission about the number of transferred payment accounts and the number of unrealized authorization to transfer a payment account in this period every 2 years, as at 31 December of the previous calendar year.