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Procedure for notification of an exemption
What is the procedure for providing notification of certain exempted services that do not qualify as payment services?
Once the revised Payment Services Directive (EU) 2015/2366 (PSD2) is implemented in Dutch law, providers that facilitate payment transactions relating to two exempted services must notify DNB of their activities under certain circumstances. This notification requirement is derived from PSD2, and relates to services that are not considered as payment services and are exempted from the licensing requirement.
Which exemptions does this concern?
This concerns payment instruments with limited options for use1 and certain telecommunication and IT services2. These exemptions were already included under the Financial Supervision Act (Wet op het financieel toezicht – Wft), but several definitions will be tightened with the implementation of PSD2. Furthermore, for services relating to telecommunications and information technology, only payments under a certain threshold are now excluded (50 EUR per transaction; 300 EUR per billing month).
When must notification be provided?
If your business offers a payment instrument allowing the acquisition of goods or services within a limited network of providers (such as gift vouchers from a certain retailer) or a limited range of goods or services (such as a fuel card), you must notify DNB. The notification solely applies to larger networks if the volume of transactions over the past twelve months meets or exceeds EUR 1 million.
If you are a provider of an electronic telecommunications network and you facilitate payment transactions for the purchase of digital or voice-based services which are billed on the same invoice to customers (such as a subscription to a music streaming service on a smartphone that is also charged to the telephone bill), you must notify DNB, irrespective of the transaction volume. The payment transactions under this service must remain within the above transaction limits3.
Procedure for limited networks
If your business makes use of the exemption for limited networks and the transaction volume in this network amounted to over EUR 1 million in the last twelve months, you must inform DNB of this by completing the online form in the Digital Supervision Portal. You must also include a description of your activities and a substantiation of why your business qualifies for the exemption. If your notification is complete you will be contacted by DNB, or you will be added to the DNB and EBA public register. If DNB considers that your activities do not fall within the scope of the exemption you will not be added to public register. If your business conducts activities without the required licence DNB may impose enforcement measures.
If your business makes use of the exemption for certain telecommunications or information technology services, then the online notification form you submit to DNB through the Digital Supervision Portal must also include an audit opinion stating that your activities are below the set transaction threshold. If your notification is complete you will be contacted by DNB, or you will be added to the DNB and EBA public register. If the transaction threshold is exceeded, then providers must in principle apply for a licence. If your business conducts activities without the required licence DNB may impose enforcement measures.
What is the start date?
You must provide notification to DNB within six months of the implementation of this requirement in Dutch law. Further specifications about the procedure may arise as a result of this implementation, and these will be promptly indicated in the Digital Supervision Portal.
Please note: to access the Digital Supervision Portal your business or legal adviser must have eHerkenning.
1 Article 1:5a(2) under (k), i) and ii), of the Wft
2 Article 1:5a(2), under (l), of the Wft
3 Referred to in Article 1:5a(2) under (l), of the Wft
- Payment institutions