The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

Electronic money U.K.

38.—(1) Subject to paragraph (3), a relevant person is not required to apply customer due diligence measures in relation to electronic money, and regulations 27, 28, 30 and 33 to 37 do not apply provided that—

(a) the maximum amount which can be stored electronically is [F1 150 euros];

(b) the payment instrument used in connection with the electronic money (“the relevant payment instrument”) is—

(i) not reloadable; or

(ii) is subject to a maximum limit on monthly payment transactions of [F2 150 euros] which can only be used in the United Kingdom;

(c) the relevant payment instrument is used exclusively to purchase goods or services;

(d) anonymous electronic money cannot be used to fund the relevant payment instrument.

(2) Paragraph (1) does not apply to any transaction which consists of the redemption in cash, or a cash withdrawal, of the monetary value of the electronic money, [F3 where—

(a) the amount redeemed exceeds 50 euros; or

(b) in the case of remote payment transactions, the amount redeemed exceeds 50 euros per transaction.]

(3) The issuer of the relevant payment instrument must carry out sufficient monitoring of its business relationship with the users of electronic money and of transactions made using the relevant payment instrument to enable it to detect any unusual or suspicious transactions.

(4) A relevant person is not prevented from applying simplified customer due diligence measures in relation to electronic money because the conditions set out in paragraph (1) are not satisfied, provided that such measures are permitted under regulation 37.

[F4 (4A) Credit institutions and financial institutions, acting as acquirers for payment using an anonymous prepaid card issued in a third country, shall only accept payment where—

(a) the anonymous prepaid card is subject to requirements in national legislation having an equivalent effect to those laid down in this regulation; and

(b) the anonymous prepaid card satisfies those requirements.]

[F5 (5) For the purposes of this regulation—

(a) “acquirer” means a payment service provider contracting with a payee to accept and process card-based payment transactions, which result in a transfer of funds to the payee;

(b) “payment instrument” has the meaning given by regulation 2(1) of the Electronic Money Regulations 2011 M1 ;

(c) “remote payment transaction” has the meaning given by regulation 2 of the Payment Services Regulations 2017 M2 .]

Textual Amendments

F1 Words in reg. 38(1)(a) substituted (10.1.2020) by The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (S.I. 2019/1511), regs. 1(2), 5(5)(a)(i)

F2 Words in reg. 38(1)(b) substituted (10.1.2020) by The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (S.I. 2019/1511), regs. 1(2), 5(5)(a)(ii)

F3 Words in reg. 38(2) substituted (10.1.2020) by The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (S.I. 2019/1511), regs. 1(2), 5(5)(b)

F4 Reg. 38(4A) inserted (10.7.2020) by The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (S.I. 2019/1511), regs. 1(3), 5(5)(c)

F5 Reg. 38(5) substituted (10.1.2020) by The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (S.I. 2019/1511), regs. 1(2), 5(5)(d)

Marginal Citations

M1 S.I. 2011/99.

M2 S.I. 2017/752.