Instruction No. 12/2025

Instruction No. 12/2025
BO No. 9/2025 2nd Supplement • 2025/09/30
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Topics
Payment Systems :: Large Value Payment System
Mod. 99999940/T – 01/14
Index
Text of the Instruction
Text of the Instruction
Subject: Amending Instruction No. 16/2022
Following the publication of European Central Bank (ECB) Guideline (EU) 2025/1889 of 31 July 2025 (ECB/2025/28), which amends Guideline (EU) 2022/912 on a new generation pan-European automated real-time gross settlement trans-European payment system (TARGET) (ECB Guideline 2022/8), it is necessary to amend Instruction No. 16/2022 of 17 October 2022, which implements ECB Guideline 2022/8 in the domestic legal order. This amendment aims, fundamentally, to allow access by non-bank payment service providers to payment systems operated by a Eurosystem central bank and to central bank accounts, following the European Central Bank Decision (EU) 2025/222 of 27 January 2025 (ECB/2025/2); to introduce the technical payment functionality “one leg out” (TIPS OLO) in the TARGET instant payment settlement system (TIPS); and to allow central counterparties (CCPs) access to the credit facility in TARGET, granted by national central banks without the need for approval by the Governing Council of the European Central Bank. Thus, in the exercise of the competence attributed to it by Article 14 of its Organic Law, which confers powers to regulate, supervise and promote the proper functioning of payment systems, notably within the framework of its participation in the European System of Central Banks (ESCB), and with a view to regulating the functioning of the national component of TARGET – TARGET-PT – the Bank of Portugal determines the following:

1. In Instruction No. 16/2022 of 17 October, Article 2 is amended as follows:
   a) Subparagraph 18-A) is inserted:
   «18-A) “Credit facility for central counterparties” (CCP credit facility);»; b) Subparagraph 26-A) is inserted:
   «26-A) “Eligible central counterparty” (Eligible CCP);»; c) Subparagraph 43-A) is inserted:

Instruction No. 12/2025 BO No. 9/2025 2nd Supplement • 2025/09/30 Topics Payment Systems :: Large Value Payment System
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Mod. 99999940/T – 01/14
«43-A) “Non-bank payment service provider”;»; d) Subparagraph 63-A) is inserted:
«63-A) “One leg out credit transfer order in the instant payment settlement service through TARGET (TIPS)” (TIPS OLO credit transfer order);».

2. In Article 10 of Instruction No. 16/2022 of 17 October, paragraph 5 shall have the following wording:
   «5. The NCBs of the euro area may grant eligible CCPs access to the CCP credit facility, under the conditions set out in Annex I, Part II, Article 10, paragraph 5.».

3. The following paragraph 8-A is inserted into Article 10 of Instruction No. 16/2022 of 17 October:
   «8-A. If the access of an eligible CCP to the CCP credit facility has been limited, suspended or revoked for prudential reasons in accordance with the provisions of Article 5 of Decision (EU) 2025/1734 (ECB/2025/29), the relevant NCB of the euro area must, with regard to intraday credit access, execute that decision in accordance with the contractual or regulatory provisions applied by the relevant NCB of the euro area.».

4. The following paragraph 7 is added to Article 26 of Instruction No. 16/2022 of 17 October:
   «7. By 31 December 2025, Eurosystem central banks must remove from their own accounts BIC-addressable holders and contactable parties that are part of the entities referred to in Annex I, Part I, Article 4, paragraph 2, subparagraph d-A), with the exception of the contactable parties referred to in Annex I, Part VII, Article 7.».

5. In Annex I of Instruction No. 16/2022 of 17 October, Part I is amended as follows:
   a) The following paragraph 2-A is added to Article 3:
   «2-A. TARGET allows for instant payments in currencies other than or to/from eligible interoperable payment systems in other currencies, which operate in central bank currency and use the TIPS platform. Eligible payment systems in other currencies are those owned and/or operated by central banks that have signed a currency participation agreement with the Eurosystem central banks, allowing them to use the TIPS platform [as a technical base] to settle instant payments.»; b) In Article 4, paragraph 2 shall have the following wording:
   «2. The Bank of Portugal may also, if it deems appropriate, admit as participants the following entities:

Instruction No. 12/2025 BO No. 9/2025 2nd Supplement • 2025/09/30 Topics Payment Systems :: Large Value Payment System
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Mod. 99999940/T – 01/14 a) Treasury departments of central or regional governments of Member States; b) Public sector entities of Member States authorized to maintain accounts on behalf of clients; c) i) investment firms established in the Union or in the EEA, even when operating through a branch established in the Union or in the EEA, and ii) investment firms established outside the EEA, provided they operate through a branch established in the Union or in the EEA; d) Management entities of SP acting in that capacity; d-A) Non-bank payment service providers established in the Union or in the EEA, even when operating through a branch established in the Union or in the EEA; e) Credit institutions or any entities of the types listed in subparagraphs a) to d-A), in both cases if they are established in a country with which the Union has concluded a monetary agreement allowing any of these entities access to Union payment systems, subject to the conditions established in the monetary agreement and provided that the legal regime of that country and the applicable Union legislation are equivalent.»; c) The following subparagraph h) is added to Article 5, paragraph 1:
«h) If the applicant is one of the entities referred to in Article 4, paragraph 2, subparagraph d-A), compliance with i) the terms provided for in the applicable national legislation transposing Article 35-A, paragraph 1, of Directive (EU) 2015/2366 of the European Parliament and of the Council(); and ii) the procedures provided for in the relevant provisions of national law transposing Article 35-A, paragraph 2, of Directive 2015/2366. () Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337 of 23.12.2015, p. 35ELI: http://data.europa.eu/eli/dir/2015/2366/oj).»; d) The following subparagraph f) is added to Article 5, paragraph 2:
«f) If the applicant is one of the entities referred to in Article 4, paragraph 2, subparagraph d-A), for the purposes of complying with Article 5, paragraph 1, subparagraph h), or a declaration issued by the relevant national authority, or a duly signed declaration approved by the competent administrative body of the non-bank payment service provider, in both cases confirming

Instruction No. 12/2025 BO No. 9/2025 2nd Supplement • 2025/09/30 Topics Payment Systems :: Large Value Payment System
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Mod. 99999940/T – 01/14 the compliance of that entity with: i) the conditions for applying for participation in designated payment systems, as provided for in the applicable national legislation transposing Article 35-A, paragraph 1, of Directive 2015/2366; and ii) the procedures provided for in the relevant provisions of national law transposing Article 35-A, paragraph 2, of Directive 2015/2366.»; e) The following paragraph 7 is added to Article 10:
«7. A participant referred to in Article 4, paragraph 2, subparagraph d-A) must submit to the Bank of Portugal, once a year, a signed declaration, approved by its competent administrative body, confirming the permanent compliance, by the participant, of the requirements established in Article 5, paragraph 2, subparagraph f), and the permanent compliance, by the participant, of the requirement to carry out adequate security controls to protect its systems against unauthorized access and use, as provided for in Article 20, paragraph 1. The Bank of Portugal has the right to verify the information provided in that declaration and to request any supporting documentation it considers reasonably necessary.»; f) The following Article 13-A is inserted:
«Article 13-A
Maximum balance amounts in accounts maintained by participants referred to in Article 4, paragraph 2, subparagraph d-A) and sanctions in case of non-compliance

1. The total funds held at the end of the business day by a participant referred to in Article 4, paragraph 2, subparagraph d-A), in all accounts it maintains at the Bank of Portugal, may not exceed a maximum balance amount calculated according to the conditions indicated below. The funds referred to in this paragraph do not include funds held by a participant referred to in Article 4, paragraph 2, subparagraph d-A), in accounts maintained for the purposes of the D settlement procedure for SP LBTR or the settlement procedure for SP TIPS.
2. The maximum balance amount referred to in paragraph 1 is calculated as follows:
   a) If a participant referred to in Article 4, paragraph 2, subparagraph d-A), has been in operation for a period of 12 months before its application to open an account in TARGET, the maximum balance amount must correspond to double the maximum value of debit cash transfer orders settled, including, where relevant, peripheral system transfer orders, but excluding liquidity transfers from the participant referred to in Article 4, paragraph 2, subparagraph d-A), on any business day during the previous 12 calendar months. The participant referred to in Article 4, paragraph 2, subparagraph d-A), must include the detailed calculation

Instruction No. 12/2025 BO No. 9/2025 2nd Supplement • 2025/09/30 Topics Payment Systems :: Large Value Payment System
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Mod. 99999940/T – 01/14 of this maximum balance amount in its application to the Bank of Portugal to participate in TARGET. b) If a participant referred to in Article 4, paragraph 2, subparagraph d-A), has not been in operation for a period of 12 months before its application to open an account in TARGET, the maximum balance amount must correspond to double the total maximum expected value of that participant’s debit cash transfer orders, including, where relevant, peripheral system transfer orders, but excluding liquidity transfers. The participant referred to in Article 4, paragraph 2, subparagraph d-A), must include its detailed calculation of the proposed maximum balance amount in its application to open an account in TARGET. c) In the 12-month period following the opening of the first active account in TARGET, the Bank of Portugal must recalculate the maximum balance amount for each participant referred to in Article 4, paragraph 2, subparagraph d-A), in all months of the first quarter, using the actual maximum value of debit cash transfer orders settled, including, where relevant, peripheral system transfer orders, but excluding liquidity transfers, since the account opening. Subsequently, the new calculation is carried out in all quarters. The recalculated maximum balance amount is applicable from the business day following the notification of the new calculation to each participant by the Bank of Portugal and until the next new calculation. d) After the first 12-month period following the opening of the first active account in TARGET, the Bank of Portugal must recalculate the maximum balance amount once a year. The new calculation must be based on the actual total maximum value of all debit cash transfer orders of a participant referred to in Article 4, paragraph 2, subparagraph d-A), including, where relevant, peripheral system transfer orders, but excluding liquidity transfers during the previous 12-month period in TARGET, and on the information provided to the Bank of Portugal in accordance with subparagraphs a) and b). e) In exceptional circumstances, the Bank of Portugal may, at its discretion, recalculate the maximum balance amount on a case-by-case basis, if a significant, imminent or already occurred change in the settlement values of a participant referred to in Article 4, paragraph 2, subparagraph d-A), is observed, which could determine non-compliance with the relevant maximum balance amount. That new calculation must be carried out in accordance with subparagraph b).
3. If the total funds in the accounts of a participant referred to in Article 4, paragraph 2, subparagraph d-A), exceed the applicable maximum balance amount, that participant

Instruction No. 12/2025 BO No. 9/2025 2nd Supplement • 2025/09/30 Topics Payment Systems :: Large Value Payment System
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Mod. 99999940/T – 01/14 must take immediate measures to reduce the total funds held to the maximum balance amount or to a lower amount. If this reduction is not possible due to a credit payment shortly before the end of the business day, the reduction must be carried out without unjustified delay after the start of the following business day.
4. If a participant referred to in Article 4, paragraph 2, subparagraph d-A), is a direct participant in a payment system that is a peripheral system of TARGET and uses the D settlement procedure for SP LBTR or SP TIPS settlement procedures, that participant must report monthly to the Bank of Portugal the maximum and average daily overnight balances in the technical accounts of the relevant TARGET peripheral system. That participant must also report monthly the maximum and average daily amounts of its settlement obligations processed in the corresponding peripheral system.
5. If a participant referred to in Article 4, paragraph 2, subparagraph d-A), fails to comply with paragraphs 1 to 3, the Bank of Portugal must apply a monetary penalty corresponding to 0.03% of the total amount exceeding the maximum balance amount held in all accounts by that participant at the end of the business day of TARGET, as well as an additional daily monetary penalty of 1,000 EUR for each day of non-compliance.
6. The accounts referred to in paragraph 1 must be reviewed no later than 12 months after 6 October 2025 and, subsequently, at least once every three years. The methods for calculating the maximum balance amount described in paragraph 2 must be reviewed no later than 12 months after 6 October 2025 and, subsequently, at least once every three years.»;
g) In Article 18, paragraph 1, subparagraph b) shall have the following wording:
«b) Immediate payment orders and TIPS OLO credit transfer orders are considered introduced into TARGET-PT and irrevocable at the moment of reservation of the necessary funds in the participant’s TIPS CND account or its respective TIPS SP technical account;»; h) Article 21 shall have the following wording:
«Article 21
Clearing scheme
If, due to a TARGET failure, a cash transfer order cannot be settled on the same business day it was accepted or cannot be presented, the Bank of Portugal must offer to clear the direct participants concerned, in accordance with the special procedure provided for in Appendix II.»;

Instruction No. 12/2025 BO No. 9/2025 2nd Supplement • 2025/09/30 Topics Payment Systems :: Large Value Payment System
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Mod. 99999940/T – 01/14 i) The following paragraphs 6 and 7 are added to Article 25:
«6. If a participant referred to in Article 4, paragraph 2, subparagraph d-A), does not correct a significant non-compliance with the requirements of Article 13-A, the Bank of Portugal may terminate its participation in TARGET under the circumstances described in paragraph 2, subparagraphs b) and/or c). In derogation of the provisions of paragraph 2, the Bank of Portugal may terminate the participation in TARGET of that participant with one month’s prior notice and apply an additional single monetary penalty of 1,000 EUR for each account closed. For the purposes of this paragraph, each of the following acts is considered, among others, a case of significant non-compliance:
a) Systematic or repeated violation of the limit on the maximum balance amount in question, including, without limitation, a violation that significantly exceeds the limit on the maximum balance amount in question; b) Failure to reduce the amount held in the relevant accounts to a level equal to or lower than the maximum balance amount by the end of the business day following the business day on which the funds are credited; c) Failure to comply with the obligation to report monthly the maximum and average daily overnight balances in the technical accounts of the relevant TARGET peripheral system and the maximum and average daily amounts of settlement obligations processed in the corresponding peripheral system.
7. If a participant referred to in Article 4, paragraph 2, subparagraph d-A), fails to comply with the requirements established in Article 10, paragraph 7, the Bank of Portugal may terminate the participation in TARGET of that participant under the circumstances described in paragraph 2, subparagraphs b) and/or c). In derogation of the provisions of paragraph 2, one month’s prior notice must be given to that participant.».

6. In Annex I of Instruction No. 16/2022 of 17 October, Part II is amended as follows:
a) Article 1 shall have the following wording:
«Article 1
Opening and management of main cash accounts
1. The Bank of Portugal shall open and manage, at least one main cash account (MCA) in the name of each participant, unless the participant is an SP that is not an eligible CCP that only uses the settlement procedures for SP LBTR or TIPS, in which case the use of an MCA is at the discretion of the SP.
2. For the purposes of settling monetary policy operations, as established in the Bank of Portugal Instruction on the implementation of the Eurosystem monetary policy, and of settling interest on monetary policy operations and others with the Bank of Portugal, the participant shall designate a primary MCA with the Bank of Portugal.
3. The primary MCA designated under paragraph 2 shall also be used for the following purposes:
a) Remuneration provided for in Part I, Article 12, unless the participant has designated another participant in TARGET-PT for that purpose; b) Intraday credit, if applicable; and c) Overnight credit to eligible CCPs through the CCP credit facility, if applicable.
4. Any negative balance of a primary MCA should not be less than the credit line (if granted). There should be no debtor balance in an MCA that is not a primary MCA.»;
b) In Article 10, paragraph 5 shall have the following wording:
«5. The Bank of Portugal may grant access to the CCP credit facility to eligible CCPs, covered by the scope of Article 139, paragraph 2, subparagraph c), of the Treaty, in conjunction with Articles 18 and 42 of the Statutes of the ESCB and the provisions of the Bank of Portugal Instruction on the implementation of the Eurosystem monetary policy. Such eligible CCPs are those that, at the appropriate times:
a) Are authorized as eligible CCPs under applicable Union or national legislation; b) Are eligible entities for the purposes of paragraph 2, subparagraph d); c) Are established in the euro area; d) Have access to intraday credit; e) Meet the requirements regarding safeguards on financial soundness, in accordance with Article 2 of European Central Bank Decision (EU) 2025/1734 (ECB/2025/29)(); f) Meet the requirements regarding safeguards on good liquidity risk management, in accordance with Article 3 of Decision (EU) 2025/1734 (ECB/2025/29). () Decision (EU) 2025/1734 of the European Central Bank of 31 July 2025 on safeguards regarding the access of central counterparties to overnight credit from the Eurosystem in TARGET (ECB/2025/29)»; c) Paragraphs 6 and 7 are deleted from Article 10;

d) Article 11 shall have the following wording:
«Article 11
Eligible collateral assets for credit
Intraday credit and access to the CCP credit facility must be based on eligible collateral assets. Identical assets to those eligible for the conduct of Eurosystem monetary policy operations are eligible as collateral, subject to the same valuation and risk control rules as those established in the Bank of Portugal Instruction on the implementation of the Eurosystem monetary policy.»; e) The following Article 12-A is inserted:
«Article 12-A
Procedure for granting credit for the CCP credit facility

1. The interest rate applied to the CCP credit facility is the interest rate of the permanent lending facility.
2. Non-compliance by an eligible CCP, which is not an eligible counterparty for Eurosystem monetary policy operations and which does not have access to the permanent lending facility to repay intraday credit at the end of the day, will be automatically consi»;