These Regulations make provision for the enforcement of the obligations set out in EC Regulation 1781/2006/EC of the European Parliament and of the Council of 15 November 2006 on information on the payer accompanying transfers of funds (the EC Regulation) (OJ No L 345, 8.12.2006). The EC Regulation imposes obligations on payment services providers when they make or receive a transfer of funds.
Part 2 makes provision for the supervision of payment service providers (individuals or businesses whose business includes services for the electronic transfer of funds on behalf of a payer). Regulation 3 allocates supervisors to payment service providers: those authorised by the FSA will be supervised by it; those not so authorised are supervised by Revenue and Customs. Regulation 4 sets out the duties on the two supervisors. Regulation 5 enables supervisors to impose charges on providers they supervise for compliance with the EC Regulation.
Part 3 provides enforcement powers for the supervisors. These include powers to obtain information from payment service providers and persons connected to them (in regulation 7), to enter and inspect premises (regulations 8 and 9), and to apply to court when a provider has failed to comply with a requirement to produce information to a supervisor (regulation 10). Civil penalties may be imposed by the supervisors under regulation 11 on providers who fail to comply with the requirements of the EC Regulation. Provision is made for reviews of and appeals against such penalties (regulations 12 and 13). Payment service providers and their officers and senior management who fail to comply with the requirements of the EC Regulation may also be guilty of a criminal offence (regulations 14 to 16). Providers convicted of a criminal offence may not also be liable to a civil penalty.
Regulation 17 contains provision for the recovery of penalties and charges through the court. Regulation 18 reflects the position under Article 17(2) of the EC Regulation that transfers of funds between the United Kingdom and any of the Crown Dependencies are to be treated as transfers within the United Kingdom. Regulation 19 makes consequential amendments to primary legislation.(Date in force, 15 December 2007).
View The Transfer of Funds (Information on the Payer) Regulations 2007 No. 3298, 28 November 2007
View Explanatory Memorandum - The Transfer of Funds (Information on the Payer) Regulations 2007 No. 3298, (PDF 52KB), 28 November 2007