List of Q&As

Recognition for large exposure purposes of a guarantee granted by the central government on an equity exposure

Can an equity exposure guaranteed by a central government be exempted from the large exposure framework or can only debt instruments be exempted? In particular, would such guarantees be compliant with the eligibility requirement set in Article 213(1)(b) CRR?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2017_3621| Topic: Large exposures| Date of submission: 06/12/2017

Eligibility of mortgage mandates under Belgian law

Are mortgage mandates under Belgian law eligible as immovable property collateral? Is there a difference between the SA and IRB approach?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2019_4721| Topic: Credit risk| Date of submission: 15/05/2019

Customer data transfer to Member States for the purpose of supervision

Does the phrase “data related to their customers” under Article 6 of the Delegated Regulation refer to personal customer data (as defined by EU Regulation 2016/679) or general data for management purposes (e.g. descriptive statistics on the number of customers, customer risk distribution, etc.)?

Legal act: Directive (EU) 2015/849 (AMLD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2019/758 – RTS on implementation of group wide AML/CFT policies in third countries

ID: 2020_5350| Topic: Third country policy| Date of submission: 02/07/2020

Disclosure of information within the group related to suspicious activity reports (SARs) to the competent authorities

Does the requirment under Article 5 of the Delegated Regulation refer to the sharing of information on the underlying data of the Suspicious Activity report (SAR) (e.g. transactions, customer data) without disclosing whether the SAR was filed and sent to the local authorities of the third country?

Legal act: Directive (EU) 2015/849 (AMLD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2019/758 – RTS on implementation of group wide AML/CFT policies in third countries

ID: 2020_5349| Topic: Third country policy| Date of submission: 02/07/2020

Retroactivity concerning customer consent for data sharing and processing

Is there the expectation that such consent clauses, under Article 4 of the Delegated Regulation, be incorporated into contracts on a go-forward basis from the date the Regulation entered into force (i.e. with new customers and existing customer contract renewals) or is there the expectation that all existing customer contracts will be remediated to meet this requirement? What approach should be used with former customers?

Legal act: Directive (EU) 2015/849 (AMLD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2019/758 – RTS on implementation of group wide AML/CFT policies in third countries

ID: 2020_5348| Topic: Third country policy| Date of submission: 02/07/2020

Absolute materiality threshold for Retail based on the new RTS

How to apply Article 123(c) CRR to set the absolute component of the materiality threshold in the case of transition of exposures to or from Retail.

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2016/07 - Guidelines on the application of the definition of default under Article 178 CRR

ID: 2019_4666| Topic: Credit risk| Date of submission: 11/04/2019

Retail Classification

Retail classification if an obligor has exposure under both the STA and IRB approach. This question is relevant for banks that are partially using the SA and partially using the IRB approach and where the use of the different methods is on the basis of the product type i.e. mortgages are under IRB, other Retail loans under SA. Article 123 allows for the exclusion of exposures fully and completely secured on residential property that have been assigned to the exposure class laid down in point (i) of Article 112 (exposures secured by mortgages on immovable property) when calculating the total amount owed the institution.

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2018_4012| Topic: Credit risk| Date of submission: 22/06/2018

Authorisation for the provision of PIS and AIS on behalf of other legal entities belonging to the same corporate group / Autorizzazione ad offrire servizi di PIS e AIS per conto di altre Legal Entity appartenenti allo stesso Gruppo societario

In a corporate group which is not listed in the register of banking groups and in which there is both an electronic money institution and a credit institution, can the electronic money institution offer payment initiation services (PIS) and account information services (AIS), including on behalf of the group’s credit institution that also provides the same service? Must the electronic money institution as a service provider offering PIS and AIS to clients of the group’s credit institution provide its own certificate, the group certificate, or the credit institution’s certificate to the other account servicing payment service providers (ASPSPs)? Or, as it is merely a service provider, is it the credit institution’s certificate that should be displayed? Can a corporate group request a group certificate to provide to the other ASPSPs and/or third party providers (TPPs)? *** IT:  In un Gruppo societario, che non è iscritto al registro dei Gruppi Bancari e al cui interno sono presenti sia un Istituto di moneta elettronica che un Ente creditizio, l’Istituto di moneta elettronica può offrire i servizi di PIS e AIS, anche per conto dell’Ente creditizio del Gruppo in qualità di fornitore del servizio stesso? L’Istituto di moneta elettronica che offre i servizi di PIS e AIS ai clienti dell’Ente creditizio di Gruppo, in qualità di fornitore del servizio, si deve presentare verso gli altri ASPSP con il proprio certificato, con il certificato di Gruppo oppure con il certificato dell’Ente creditizio? O in quanto mero fornitore del servizio, il certificato da esporre è quello dell’Ente creditizio? Un Gruppo societario può richiedere un certificato di Gruppo per presentarsi alle altre ASPSP e/o TPP?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2019_4752| Topic: Authorisation and registration| Date of submission: 29/05/2019

Losses due to fraud per liability bearer / Perdite dovute a frode per portatore di responsabilità

Please clarify the requirement in guideline 1.6 (b) of the EBA Guidelines on fraud reporting under PSD2 with regard to recognising losses due to fraud per liability bearer. *** IT: Si chiede cortesemente di chiarire il requisito espresso all'interno dell'orientamento 1.6(b) in materie di obblighi di segnalazione delle perdite dovute a frode per portatore di responsabilità

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2018/05 - EBA Guidelines on fraud reporting under PSD2 (amended by EBA/GL/2020/01)

ID: 2019_5008| Topic: Fraud reporting| Date of submission: 19/11/2019

SCA profiles and multiple-use of devices

Can multiple users use the same device (i.e. smartphone) and have different strong customer authentication (SCA) profiles on the same device?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2019_4560| Topic: Strong customer authentication and common and secure communication (incl. access)| Date of submission: 19/02/2019

Relying on vendor mechanisms processing the biometric data for strong customer authentication; Multiple fingerprint samples stored on a mobile device and used for purpose of user authentication.

Are the obligations of a payment service provider (PSP) laid down in the Article 8 of RTS on strong customer authentication and secure communication fulfilled in case the biometric credentials of customer are stored at the device level and the strong customer authentication itself is processed by the mobile device? In this context, are the obligations of the PSP laid down in Article 8 and 24 of RTS on Strong Customer Authentication fulfilled in case the mobile device stores multiple fingerprint samples for user authentication?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2019_4651| Topic: Strong customer authentication and common and secure communication (incl. access)| Date of submission: 01/04/2019

Delayed or deferred PIN for wearable devices

Is the PIN entered when the cardholder takes on wearable device on, still valid as a knowledge element for one or several transactions later the same day, if it can be ensured that the device has not been taken off?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2019_4783| Topic: Strong customer authentication and common and secure communication (incl. access)| Date of submission: 17/06/2019

Whitelisting

Will a clearing house for distribution be enabled to facilitate the on-going maintenance of the whitelisting process?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2019_4800| Topic: Strong customer authentication and common and secure communication (incl. access)| Date of submission: 19/06/2019

Failed Authentication Code

Please clarify under what circumstances Article 4 Paragraph 3(a) of the Regulation (EU) 2018/389 – RTS on SCA and SC might it be impossible to apply in remote authentication where SMS based One time passwords (OTPs) are used as the authentication method.

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2019_4875| Topic: Strong customer authentication and common and secure communication (incl. access)| Date of submission: 16/08/2019

Authentication code

Is an extra strong customer authentication (SCA) required, after logging in (with or without SCA) in the mobile application, to initiate the provisioning step to add the customers card to a third party wallet (e.g. Apple or Google pay)?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2019_4910| Topic: Strong customer authentication and common and secure communication (incl. access)| Date of submission: 12/09/2019

SCA for contactless payments at a POS executed via a mobile device

1) Can we consider the strong customer authentication (SCA) outsourced from the issuer of cards to the payer? 2) Is it necessary for the issuer of the cards to perform SCA based on the elements of identification that are beyond its control?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2019_4937| Topic: Strong customer authentication and common and secure communication (incl. access)| Date of submission: 07/10/2019

"Push based" authentication and SCA requirements

Does "push based" authentication fall in the Strong customer authentication (SCA) requirements, based on the security risks "push authentication" poses?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2019_4984| Topic: Strong customer authentication and common and secure communication (incl. access)| Date of submission: 05/11/2019

Treatment of secured lending or capital market-driven transactions that would require an outflow rate higher than 25 % but they have been closed with eligible counterparties

Delegated Regulation (EU) 2018/1620 in article 1 (17) (a) states that a 25% outflow rate has to be applied to secured lending or capital market-driven transactions, closed with eligible counterparties, that would require an outflow rate higher than 25 %. Based on the new LCR Templates published on EBA websites and Delegated Regulation (EU) 2018/1620, it’s not clear in which row these transactions should be reported. Could you provide some instructions for the right reporting?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (as amended)

ID: 2019_5036| Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)| Date of submission: 10/12/2019

Treatment of Central Bank Overnight deposits in ALMM Template C71

Should central bank fixed term overnight deposits be included within ALMM Template C71 Row 120 "ALL OTHER ITEMS USED AS COUNTERBALANCING CAPACITY"?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (as amended)

ID: 2019_5028| Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)| Date of submission: 05/12/2019

C66: undrawn ECB open market operations backed with pre-positioned own issuances (retained CB or ABS) as “Undrawn committed facilities received”.

In the specific case of own issued (Retained Covered Bonds or ABS) pre-positioned assets in collateral pools with the Central Bank. Can the amount of additional funding that could be obtained out of such pre-positioned assets be reported in the counterbalancing section of C66 template in the row 1000 as “Undrawn committed facilities received”? In particular, undrawn part of ECB open market operations backed but those assets.

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (as amended)

ID: 2019_5012| Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)| Date of submission: 25/11/2019