PSR: Harmonised Rules, but Not Harmonised Sanctions (Part 5)

Even though the PSR aims to harmonise the regulation governing payment services provision across the EU, some room for manoeuvre remains for national competent authorities regarding administrative sanctions and measures.

Member States must lay down rules on administrative sanctions and measures applicable to infringements and ensure they are implemented.

Sanctions must be effective, proportionate and dissuasive.

The PSR reduces Member States’ discretion for key infringements:

1. Bank’s failure to provide access to accounts

2. Breach of AIS and PIS rules

3. Non-compliance with fraud prevention (including SCA)

4. ATM fee transparency breaches

5. Failure to meet refund deadlines

Under PSR the minimum sanctions include:

Fines	at least 10% of its total annual turnover (for companies) a maximum administrative fine of at least EUR 3 000 000 (for individuals a maximum fine of at least twice the profit gained or loss avoided from the breach (if determinable)
Public statement	It shall indicate the legal or natural person responsible for the breach and the nature of the breach
Order to cease activities	Such order could be issued to the legal or natural person responsible for the breach requiring ceasing the unlawful conduct and to desist from repeating it
Temporary management bans	A temporary ban would prevent a member of the management body of the legal person, or any other natural person who is held responsible for the breach, from exercising managing functions.

Periodic penalty payments – novelty in payment services regulation

The national competent authorities are given the power to impose periodic penalty payments for ongoing breaches of the PSR or breaches on any decisions issued by the competent authority.

• Max duration: six months

• Daily limits:

  • 3% of the average daily turnover (companies)

  • EUR 30.000 (individuals)

  • Member States may set higher limits

Need advice on PSD3/PSR requirements? Contact us: Sigita Zavišienė