If you are a prospective Payment Service Provider (PSP), selecting the correct permissions on your Financial Conduct Authority (FCA) application is a crucial step – as these permissions will affect the way the FCA provides ongoing regulatory supervision.
Under the Payment Services Regulations (PSR) 2017, there are eight possible permissions for which prospective payment services firms can apply. The permissions required for each firm will depend on the specific nature of your business model and its criminal risk exposure.
- Customers that need to deposit cash in a payment account.
- Customers that need to withdraw cash from their accounts.
- Customers that need to make transactions from their accounts and receive payment transfers.
- Customers that need to make or receive payments covered by credit.
- Firms that need to issue customers with payment instruments, such as devices or personalized procedures, to facilitate transactions.
- Customers that need to remit funds to a beneficiary or a beneficiary’s PSP.
- Customers that need to facilitate Open Banking Payments from customer accounts directly to another PSP.
- Firms with online services need to provide customers with information from their payment accounts with other PSPs.
FCA compliance should be a significant priority for PSPs in the UK. Not only do PSPs need to identify the correct permissions during the FCA approval process, but firms also need to demonstrate to the regulator that they can implement effective compliance measures to meet the relevant UK AML / CFT regulations. Those regulations include implementing a range of customer monitoring and screening measures, including transaction monitoring, sanctions screening, PEP screening, and adverse media screening.
Danos Consulting is ready to support your firm, whether it is providing resources for a project or undertaking assessment of your firms’ Compliance and Financial Crime arrangements. Please contact Bradley Handeelar who will be very happy to discuss interim solutions to ensure you are meeting your regulatory responsibilities.
Bradley Handelaar | Senior Associate, Danos Consulting
T: + 44 (0) 207 010 1154 | E: firstname.lastname@example.org