We have found these guidelines helpful, informed and focused on key areas of risk. We do however have a number of comments and have set these out below.
Risk factors (Title II, point 17.) – PayPal Europe supports the holistic approach and agrees that the presence of isolated risk factors does not necessarily move a relationship into a higher or lower risk category.
Customer risk factors (Title II, point 20. fourth bullet point) – PayPal Europe supports the risk factor but the end of the sentence (“or anyone associated with them may have handled the proceeds from crime”) is too vague and would be very difficult for the firms to monitor. We suggest ESA’s to stick to the wording already in use i.e. “family members and persons known to be close associates”.
Weighting risk factors (Title II, point 34. fourth bullet point) – PayPal Europe supports the weighting risk factors approach as it allows firms to enhance risks assessment methodology. However, we understand that the fourth bullet point does not allow firms to consider mitigation controls that would reduce the residual risk. We suggest ESA’s removing this bullet point.
Yes, subject to our comments on both general guidelines and sector specific guidelines.
PayPal Europe supports the structure of the guidelines but has several comments on the Sectoral guidelines for electronic money issuers.