AML regulation (AMLR) for payment and e-money institutions

Payment and e-money institutions are not named in the AMLR as such. They come in through the definition of financial institution in Article 2(1)(6)(a), which covers an undertaking other than a credit institution or investment firm that carries out one or more of the activities in points (2) to (12), (14) and (15) of Annex I to Directive 2013/36/EU (the CRD), including bureaux de change. The same point carves out the activities in point (8) of Annex I to the Payment Services Directive (2015/2366), which are account information services. In the CRD Annex, point (4) is payment services and point (15) is issuing electronic money, so payment institutions and e-money institutions are both inside, while a firm that only provides account information services is not. See the EBA single rulebook entry for the Annex. A firm with a mixed licence or a hybrid activity set should have its adviser confirm the mapping.

What matters in practice

• Transfers of EUR 1,000 or more. Article 19(2) applies CDD to transfers of funds of EUR 1,000 or more, including linked transfers, for credit and financial institutions other than CASPs.
• Payment initiation. Under Article 19(6), for payment initiation services the merchant counts as a customer, which changes who you identify.
• Low-risk e-money. Article 19(7) lets supervisors exempt part of CDD for a non-reloadable instrument holding no more than EUR 150, subject to conditions, including use only to buy from the issuer or within a network of providers, no link to a payment account, no exchange for cash or crypto-assets and adequate monitoring.
• Anonymous prepaid cards. Article 79(2) bars acquirers from accepting payments made with anonymous prepaid cards issued in third countries, unless technical standards say otherwise on proven low risk.

Groups and AMLA

Many payment groups passport services across the EU. Article 16 imposes group-wide policies led by the parent undertaking, and cross-border payment and e-money firms are named by commentators as likely candidates for AMLA direct supervision. Whether you are picked depends on AMLA’s risk methodology, not on your sector label.

A practitioner view

The EUR 150 e-money exemption is narrow and supervisor-granted. If your product is a gift card programme, check whether your supervisor has said anything. If it has not, plan as though full CDD applies.

What this means for you

Start by confirming your Article 2(1)(6) status, then list every product that touches the EUR 1,000 transfer rule. We can review that with you through the enquiry form or a no-obligation call. See also AMLR for CASPs and cross-border groups.

General information, not legal advice.

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