Payment Services Regulations 2017—criminal offences and the FCA's and PSR's approaches
Payment Services Regulations 2017—criminal offences and the FCA's and PSR's approaches

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Payment Services Regulations 2017—criminal offences and the FCA's and PSR's approaches
  • Criminal offences under the Payment Services Regulations 2017
  • FCA approach to enforcement
  • PSR approach to enforcement
  • The payment services regulatory regime and competition

Criminal offences under the Payment Services Regulations 2017

Under regulation 138 of the Payment Services Regulations 2009, SI 2017/752 (PSRs 2017), it is an offence to provide, or purport to provide, a 'payment service' in the UK unless the payment services provider (the PSP) is permitted to do so under the PSRs.

To be a genuine 'PSP' and provide a payment service without risk of punishment, the PSP must be one of the following:

  1. an authorised payment institution (API)

  2. a small payment institution

  3. a registered account information service provider (registered AISP)

  4. an European Economic Area (EEA) API or an EEA-registered AISP exercising its passport rights

  5. a UK authorised credit institution or an EEA authorised credit institution exercising a passporting right in accordance with Part 2 of Schedule 3 to the Financial Services and Markets Act 2000 (FSMA 2000) 

  6. an electronic money institution

  7. the Post Office

  8. the Bank of England, the European Central Bank and the national central banks of EEA states other than the UK

  9. government departments and local authorities

  10. a credit union

  11. municipal bank, or

  12. the National Savings Bank

However, where municipal banks provide or propose to provide payment services they must give notice to the Financial Conduct Authority (FCA).

A person providing a payment service who does not fall within one of the categories above can be sentenced to a maximum of two years in prison, or a potentially

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