EBA consults on fraud reporting requirements under PSD2

he European Banking Authority (EBA) launched today a public consultation on its draft Guidelines on reporting requirements on statistical data on fraud under the revised Payment Services Directive (PSD2). The Guidelines, which are addressed to payment service providers and competent authorities, are aimed at contributing to the objective of PSD2 to increase the security of retail payments in the EU. The consultation runs until 03 November 2017.

Data on payment fraud in the EU is at present difficult to obtain, not reliable, and not comparable across Member States. This does not allow capturing an accurate picture of payment fraud in the EU, including its size, components and development over time.

The EBA has developed the proposed Guidelines h in close cooperation with the European Central Bank (ECB) to ensure that the high-level fraud reporting requirements under Article 96(6) of the PSD2 are implemented consistently among Member States and that the aggregated data provided by competent authorities to the EBA and the ECB is comparable and reliable.

The first part of the Guidelines sets out requirements applicable to all payment service providers, with the exception of account information service providers, while the second part introduces requirements that are applicable to all competent authorities in the EU.

The Guidelines define the meaning of ‘fraudulent payment transactions’ for the purpose of the data reporting under these particular Guidelines. The Guidelines also include periodic reporting requirements on payment transactions and fraudulent payment transactions and set out the methodology for collating and reporting data, including data breakdown, reporting periods, frequency and reporting deadlines. The Guidelines leave it to the discretion of the competent authority to decide on the technological aspects of the reporting format and the means of communication.

Payment service providers are expected to provide high-level data on a quarterly basis and more detailed data on a yearly basis. The level of data breakdown will depend on the payment instrument used and the payment service provided. Competent authorities are expected to provide the EBA and ECB with aggregated data following the same data breakdown used by individual payment service providers.

The consultation is open until 3 November. The EBA statement is available here.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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