Cross border business PI & AISP

With a membership of the Slovak Republic in the European Union come simplified conditions for the business provision of Slovak entities in other member states and vice versa. Such a simplification of conditions is valid also in the domain of provision of payment services where the principal of a single European pass, which enables providers of payment services based on the license granted by the domestic regulator in all other member states of the European Union and European Economic Area (hereinafter referred to only as “other member state”), without the need in a host member state to request for further authorization. Obligations are joined with cross-border notifications.

Provision of payment services by a Slovak payment institution in other member states

Issues of business of the Slovak payment institution in other member states are modified namely in the Payment Services Act and Delegated Regulation of the Commission (EU) 2017/2055 (further only “cooperation regulation”). Regulation for cooperation contains standards and forms for notifications in annexes II to VI.

Payment institutions can provide payment services in other member states via:

1. its branch – payment institution sends to NBS in electronic form annex No II from the regulation for cooperation or
2. without the establishment of a branch – payment institution sends to NBS in electronic form annex V from the regulation for cooperation.

The obligation of the payment institution in the case when it has for the first time intended to provide payment services shall be submitted in paper form to NBS within data stated in § 79 section 2 of the Payment Services Act. NBS within one month from the reception of the notification from a payment institution notifies the host member state authority and informs the payment institution. If the supervisory institution of the host member state within one month from the reception of this data presents to NBS the relevant information related to an intention to provide payment services by the payment institution, namely justified doubts related to the aim of use of services of an agent of payment services or with the establishment of a branch, if it concerns namely legalization of income from criminal activities or terrorism financing, NBS rejects inscription of such an agent of payment services of a branch of payment institution into the register or cancels the registration, if it was already done; if NBS disagrees with these objections, it announces it to the supervisory institution of the host member state including its justification. NBS within three months since the reception of the notification from the payment institution notifies the supervisory institution of the host member state and the payment institution if it can provide payment services in the host member state via its branch or without the establishment of a branch.

3. agent of payment services

If the payment institution intends to provide payment services via an agent of payment services in another member state, it notifies this intention to NBS. Part of the notification is data according to § 75 section 2 of the Payment Services Act and annexes according to § 75 section 3 of the Payment Services Act. Together both? payment institutions? send? to NBS in electronic form annex No III from the Regulation for cooperation.
If the notification is complete and the data is truthful, NBS informs the respective supervisory institution of the host member state about its intention to inscribe the agent of payment services into the list of agents of payment services. NBS inscribes the agent of payment services into the list of agents of payment services by 15 days from the reception of the standpoint of the host member state, no later than 60 days since the day of reception of the notification. The branch of payment institution and its agent of payment services can start their activities on the territory of the host member state after inscription into the list according to § 74 section 1 of the Payment Services Act.

Provision of payment services by payment institutions established by other member states in the Slovak Republic

A foreign payment institution established on the territory of another member state can provide payment services on the territory of the Slovak Republic via its branch or without the establishment of a branch, namely via an agent of payment services if the authorization for the provision of these payment services was issued in another member state, and this based on written notification of the respective supervisory institution of the home member state delivered to NBS. The foreign payment institution shall notify its home supervisory authority of its intention to provide payment services in the Slovak republic in accordance with domestic legal rules. The domestic supervisory institution subsequently sends NBS notification about this evidence to NBS within the requests specified in Delegated regulation of the Commission (EU) 2017/2055.

The list of foreign payment service providers authorized to provide payment services on the territory of the Slovak republic according to the territorial scope is here.