The Commission has published a staff working paper on anti-money laundering (AML) supervision of and reporting by payment institutions in various cross-border situations. The document looks at the relationship between the Payment Services Directive (PSD) and the third Anti-Money Laundering Directive (3MLD). It notes the PSD places almost all supervisory duties in respect of a payment institution on the home state, while the 3MLD is a minimum harmonisation directive so that any institution operating in a host state must follow its rules, which may be more stringent than those of its home state. The document looks at what reporting obligations arise where:
- a payment institution authorised in state A has an agent in state B (which involves looking at whether an agent’s office constitutes an establishment of the payment institution in state B); and
- a payment institution from state A has a branch in state B.
The paper considers who has reporting obligations in relation to AML, to whom and in what situations. (Source: Commission Staff Working Paper on Cross-Border AML Supervision)