Regulatory Alerts2023-07-12
Added · Updated
Exchange services using a credit card or debit card
Exchange institutions are permitted to disburse foreign currency amounts at the counter upon presentation of a credit or debit card. For transactions exceeding EUR 2,000, institutions must establish and verify customer identity using a valid identity document and confirm that the cardholder's name matches the identity document. Institutions must also perform these verification steps for transactions below EUR 2,000 if red flags, such as suspected money laundering or terrorist financing, are present.
Q&A
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Question:
Are exchange institutions permitted to disburse amounts in foreign currencies at the counter upon presentation of a credit card or debit card?
Published: 12 July 2023
Answer:
Yes, this is permitted. If a transaction exceeds EUR 2,000, an exchange institution must always establish the identity of the customer at the counter and always verify that identify on the basis of a valid identity document. It must also verify that the name on the debit or credit card presented is the same as that on the identity card to verify, for example, the origin of the funds.
Depending on circumstances, such as “red flags” or increased risks of money laundering or terrorist financing, this must also be done for transactions below EUR 2,000. One such red flag could be the fact that the counter clerk gets the impression that a customer exchanges money for someone else.
Notes:
When defining an exchange transaction, the legislature expressly intended it to include the disbursement of funds upon presentation of a credit card. DNB assumes that this also applies to the disbursement of cash in any currency at the counter when a customer uses a debit or credit card issued by their bank, and if disbursement can be traced back to a POS terminal, as is customary nowadays.
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