The Payments Innovation Forum (PIF) has joined a coalition of industry bodies in calling on Members of the European Parliament to safeguard the Customer Due Diligence exemption for low-risk, low-value e-money products in the EU Anti-Money Laundering framework.
Currently, there is a clear rule in the Anti-Money Laundering Directive (AMLD5) that enables uncomplicated access to low-risk e-money products. This rule allows an exemption for such products from the requirement to carry out Customer Due Diligence measures for e-money products with a proven low risk. This exemption makes it easy for consumers to try new, low-risk payment methods for small value transactions and supports financial inclusion.
The removal of such a clear-cut rule, that also clearly applies to the online use of e-money products across Europe, poses a lasting threat to popular e-money products such as e-money gift cards and the innovative companies and business models behind them.