European Central Bank publishes updated information-sharing framework for non-bank payment providers’ access to central bank payment systems

The European Central Bank has published an updated memorandum establishing an information-sharing framework among the European Banking Authority, national supervisory authorities and national central banks across the European Economic Area. The framework supports assessments of payment institutions and electronic money institutions seeking access to central bank-operated payment systems in the European Union, particularly when a provider is authorised in one country but applies for access in another. It complements the ECB’s earlier introduction of uniform access criteria for non-bank payment service providers in Eurosystem systems. Under the memorandum, a host-country central bank will notify the provider’s home supervisor of an application and the resulting participation decision. Depending on the home country’s assessment procedure, the supervisor will provide information on compliance with requirements covering safeguarding measures, governance and internal controls, and winding-up plans. Supervisors should also report material compliance issues without undue delay and must immediately notify the relevant central bank of an authorisation suspension or withdrawal. Authorities will use standardised notification forms, designated contact points and written communications in English. The memorandum is nonbinding, takes effect for each authority after signature and is subject to review after one year or earlier by agreement.