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National payment institutions (KIP) – late or incorrect reauthorization as a real risk of losing the KIP license

Introductory information

In connection with the amendment to the act on payment services of 20th of June 2018, all national payment institutions have been subject to the obligation of the so-called reauthorization. The reauthorization process consists of submitting to the Polish Financial Supervision Authority (KNF) documentation including, e.g. monitoring, proceeding and follow-up procedures related to security incidents and client complaints regarding security or a description of internal control mechanisms consistent with obligations related to money laundering and terrorism financing (taking into consideration the provisions of the new act on counteracting money laundering and terrorism financing, implementing the so-called AML4 Directive). As a rule, the obligation imposed on national payment institutions is aimed at determining whether an entity meets the requirements of European Union law, in particular the PSD2 Directive and the AML4 Directive. National payment institutions were required to submit such documentation by 20th of September 2018. For more information on the reauthorization of payment institutions here.

Failure to fulfill the obligation

According to information provided by the press office of the Polish Financial Supervision Authority (KNF), currently, 34 companies licensed as national payment institutions submitted applications for reauthorization. The KNF did not register submission of the documentation from 7 obliged entities, whereas the KNF probably expects submission of such documentation from one of these entities. Bearing in mind the above, it is clear that 6 Polish fintech (financial companies operating only in the network) are threatened with the loss of the license, because non-performance of the obligation results in the KNF revoking the license to conduct business as a national payment institution.

Meeting the deadline

According to the information provided by the press spokesman of the KNF, Jacek Barszczewski, in order to meet the deadline when submitting the documentation, the date of sending the correspondence is counted as relevant (by registered mail). Entities that have sent all necessary documents on the last day of the deadline have no reasons for concern, because they obligation was fulfilled without exceeding the deadline. In relation to entities that failed to fulfill the obligation within deadline or did not fulfilled obligation at all, the KNF will take appropriate measures to determine the reason for not submitting documents. As indicated above, exceeding deadline of submission of documents or failure to provide them at all will lead to the KNF’s drawing consequences, which may lead to the revocation of the allowance to act as a national payment institution.

Our Law Firm’s team provides assistance in a all matters related to the reauthorization of national payment institutions.

We encourage You to contact us by [email protected]

Author team leader DKP Legal Piotr Putyra
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