10 2019 | SECURITY
AMLD5: No need to worry
On 20 January 2020, the transitional period will end for all EU/EEA countries to implement the AMLD 5 Directive into national law. The result means that from this point in time, anonymous payments with classic prepaid cards of over EUR 50 will no longer be possible.
In anticipation of increasing compliance requirements, paysafecard already some years ago introduced "my paysafecard", which most customers are already know. After entering their name, address and date of birth, purchased PINs can be uploaded to the online account. PIN’s can be personally managed in the new account easily from this location. The greatest benefit of the account is the very simple handling for the customer: Payments are only released with the username and password.
FDD in five minutes
This Simplified Due Diligence Process (SDD) is valid up to a monthly transaction limit of EUR 250. Customers who intend to use my paysafecard for higher amounts can register for the "unlimited" account version, by uploading a scan of their personal ID card and a selfie. The Full Due Diligence Check (FDD) then functions automatically within a maximum of five minutes.
Security and cost control are most important
"We already introduced these processes over two years ago", says Udo Müller, CEO of paysafecard. "Since then, our figures have shown clearly that anonymity of the payment is not the main motivation for using paysafecard. Factors such as cost control or security, play a much more important role". Udo emphasises that merchants do not need to fear the new rules.
In contrast, it is a bigger challenge for the paysafecard team that each EU country can individually define the limits differently. This has technical implications, and also relates to communication with customers and distributors. "Depending on the new limits, we will need to consider, for example, which nominals are meaningful and legally compliant from 2020. But, in several countries, such as Germany, the decision about the exact amount is still outstanding", explains Berthold Kao, VP Product Management at paysafecard.
Tests in Austria & Spain
To gather more practical experiences with the implications of AMLD 5, paysafecard will already implement the new rules in the markets of Austria and Spain on 23 October 2019. "We also intend to test which communication measures work best with customers and distributors and establish how much time is required for the preparations to encourage registrations. paysafecard will then be well prepared for 20 January 2020, when all other EU countries are converted", Berthold Kao explains as the reason for this approach.
No need for action by merchants
By contrast, merchants do not need to worry about the changeover in relation to paysafecard and its transaction volume. The technical implementation functions automatically and the merchant does not need to do anything proactively.
If you have any open questions, please feel free to contact your Account Manager or use our online contact form.