The Payment Services Directive or PSD (2007/64/EC) provides for a system of authorisation for payment service providers (other than banks), in which the competent authority in the home Member State is responsible for issuing and cancelling authorisation, while authorised payment service providers (referred to as 'payment institutions) may provide payment services in each of the other Member States of the EEA, either directly or through a branch office located in the Member State concerned. This arrangement is known as the Single Licence. Before doing business under a Single Licence, a Dutch-based payment institution must first notify DNB through a standardised notification procedure. More details on the procedure can be obtained by following the links below. The Netherlands has implemented the Directive’s article on notifications in Section 2:106a of the Financial Supervision Act (Wet op het financieel toezicht or Wft). If the payment institution meets the applicable requirements, DNB will notify the supervisory authority of the EEA country concerned. Referred to as 'outbound notifications', notifications under section 2:106aWft are entered by DNB in the public Register of payment institutions.
Conversely, many payment institutions from EEA Member States provide services in the Netherlands on the basis of 'inbound' notifications.
Types of notifications
Authorised payment institutions operating under a Single Licence may do business abroad in any of three ways:
- from a branch office in the receiving Member State.
- through the intermediation of a payment service provider operating in the away country.
- by performing cross-border services in the other Member State.
A payment institution authorised in another Member State must inform DNB in advance of its operation in the Netherlands through a payment services agent. (The requisite documents must be present at all times for inspection on the premises of the institution.)
Notification is possible only in regard of those payment services for which the payment institution has obtained authorisation at home. When the notification procedure has been completed with the institution’s entry in the registers and the institution starts operating in the other Member State, it must also comply with the legislation and regulation in force in the host Member State.