Communication of 24 January 2019 - New Reporting of Agents Distributing Payment Services

Communication of 24 January 2019
New Reporting of Agents Distributing Payment Services. Instructions for Italian Payment Institutions and Electronic Money Institutions.

Preamble
The Bank of Italy has prepared, within the framework of the G.I.A.V.A. system (Integrated Management of Supervisory Registers and Directories), a new procedure for the submission, by Italian payment institutions and electronic money institutions (hereinafter "institutions"), of communications concerning financial agents registered in the list pursuant to Articles 128-quater, paragraphs 2 and 6, of the TUB (Banking Law) with whom the institutions have concluded agreements for the promotion and conclusion of contracts relating to the provision of payment services ("distribution agreements") in Italy ("GIAVA-Agenti") (1). The GIAVA-Agenti procedure is accessible via the Bank of Italy's data collection site, INFOSTAT (2).

Instructions for completing the new report, which replaces, with effect from 11 February 2019, the sending of email messages pursuant to the Bank of Italy's communication of 31/10/2012 "Agent Reports for Payment Services – Instructions," are provided in the attachment. Consequently, the aforementioned communication is hereby repealed.

The Bank of Italy will continue to receive communications according to the old methods until 8 February 2019.

Information on agents with distribution agreements in place at the date of launch of the GIAVA-Agenti procedure, already acquired by the Bank of Italy according to the old methods, will be made available to each intermediary in the archives of the new system.

For the purpose of reporting new distribution agreements via the new procedure, institutions must select agents listed in the updated list made available by the procedure itself. The list will include agents who appear registered and authorized to operate in the lists of the Organism of Agents and Brokers (OAM); consequently, institutions:
a) will not need to indicate any personal data concerning new agents with whom they intend to conclude distribution agreements (as such data is already available in the "GIAVA-Agenti" procedure); b) may report only agents who appear registered and authorized to operate in the OAM lists, and therefore selectable via the list proposed by the procedure.

(1) The conclusion of distribution agreements with agents operating in other EU Member States, in relation to activities carried out under the mutual recognition regime within the EU, is not subject to reporting via the "GIAVA-Agenti" procedure and will therefore continue to be reported via ordinary communication as provided for in the Supervisory Provisions, cf. Bank of Italy Measure of 17 May 2016, and subsequent amendments, containing the Supervisory Provisions for payment institutions and electronic money institutions, Chapter VII, Section III, para. 3. (2) Site: www.bancaditalia.it; Path: Statistics / Data Collection / Credit and Financial Reports / Surveys on specific supervisory topics.

Aspects Concerning the Procedure for Agent Registration The "GIAVA-Agenti" report does not modify the timeframes provided for in the Supervisory Provisions for payment and electronic money institutions for the verification by the Bank of Italy of the conditions necessary for the registration of the agent in the register of payment institutions or the register of electronic money institutions. Upon the first communication, the agent's registration occurs within sixty days from the receipt of the complete communication containing all its elements. For subsequent communications, registration occurs within twenty days from the receipt of the complete communication containing all its elements (3).

The Bank of Italy may refuse to register the agent in the register when the information provided by the institution is inaccurate or when the correct provision of payment services or compliance with regulations on combating money laundering and terrorist financing is not ensured.

In the event of the initiation of a denial procedure, the report will not be acquired in the registers until the conclusion of said procedure.

Upon the first report (excluding institutions having distribution agreements already in place at the date of launch of the new procedure), the institution intending to use agents must send, via usual correspondence channels, a communication containing a description of the control mechanisms on agents to ensure compliance with the obligations provided for in the Supervisory Provisions (4).

Upon reporting new agents, the institution will declare, through a specific screen of the "GIAVA-Agenti" procedure, that it has verified the agent's compliance with obligations regarding the combating of money laundering and terrorist financing and that the agent's organizational structure and available resources are adequate for carrying out the activity (5).

The deletion of the agent, depending on the case, from the register of payment institutions or the register of electronic money institutions, is ordered, alternatively:

• following timely communication of the termination of the mandate in the "GIAVA-Agenti" procedure by the principal institution, due to either commercial reasons or measures taken by the OAM (deletion from lists, loss of requirements for authorization to operate);
• ex officio, due to the loss of the requirement for registration or authorization to operate in the OAM lists, in the event of inactivity by the principal institution. In this case, the principal institution must confirm in writing to Supervision that it has adopted every precaution to ensure the effective and timely interruption of the distribution of payment services by the deleted subject. If the institution subsequently intends to use the agent again (who has meanwhile remedied the irregularity with the OAM), it must proceed with a new registration report.

(3) Until the entry into force of the amendments to the Bank of Italy Measure of 17 May 2016 implemented pursuant to Directive 2015/2366/EU (so-called PSD2), the timeframes in force at the date of issuance of these instructions continue to apply.
(4) Cf. Bank of Italy Measure of 17 May 2016, and subsequent amendments, containing the Supervisory Provisions for payment institutions and electronic money institutions, Chapter VII, Section III, para. 1, no. 1.1.
(5) Cf. Bank of Italy Measure of 17 May 2016, and subsequent amendments, containing the Supervisory Provisions for payment institutions and electronic money institutions, Chapter VII, Section III, para. 1, no. 1.2.

from the subject deleted. If the institution, after the deletion, intends to use the agent again (who has meanwhile remedied the irregularity with the OAM), it must proceed with a new registration report.

REPORTING OF AGENTS WHO PROMOTE AND CONCLUDE CONTRACTS RELATING TO THE PROVISION OF PAYMENT SERVICES - INSTRUCTIONS FOR COMPLETION

1. Recipients of the Instructions
   The recipients of these instructions are payment institutions and electronic money institutions authorized in Italy (hereinafter "institutions") and branches of electronic money institutions having their legal seat in a third country authorized to operate in Italy.

2. Legal Sources
   The matter is regulated:

• for electronic money institutions, by Articles 114-quater and 114-quinquies.2, paragraph 1, of the TUB;
• for payment institutions, by Articles 114-septies and 114-quaterdecies, paragraph 1, of the TUB.

3. Definitions
   For the purposes of this regulation, the following are defined:
   a) "agent" the subject referred to in paragraphs 1 and 6 of Article 128-quater of the TUB who promotes and concludes contracts relating to the provision of payment services on direct mandate of the institutions; b) "communication of start/variation of distribution agreements" any grant or revocation of mandates by virtue of which an agent promotes and concludes contracts relating to the provision of payment services in Italy on behalf of the principal institution, which determines the obligation to transmit the relevant information to the Bank of Italy via the GIAVA procedure; c) "GIAVA procedure (Integrated Management of Supervisory Registers and Directories)" the computer procedure part of the Bank of Italy's Internet-based data collection system (INFOSTAT), which institutions use to send the reports referred to in these instructions (1).

4. Reporting Timeframes
   4.1 New Mandates
   Institutions may access the GIAVA-Agenti procedure at any time to communicate the grant of mandates within the framework of distribution agreements with new agents.

(1) For the use of the procedure, reference is made to the User Manual for Reporting Intermediaries published on the Bank of Italy website at the page Statistics / Data Collection / Credit and Financial Reports / Surveys on specific supervisory topics. The Manual contains information to perform: 1) adherence to the INFOSTAT data collection system; 2) registration of procedure users; 3) preparation, digital signature, and submission of reports.

4.2 Termination of Existing Mandates
Institutions report to the Bank of Italy the termination of existing mandates promptly and, in any case, within 15 days.

5. Content of the Report
   For new agents, institutions provide the registration code in the OAM lists or the subject's tax code, in order to verify that they appear registered in the OAM lists on the date the report is made. No other data is required. The date of the mandate will be that connected with the expiration of the sixty/twenty days provided for in the Supervisory Provisions for payment and electronic money institutions for registration.

For the deletion of agents regarding relationships no longer in place, the date of termination/revocation of the mandate must be provided.