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6
Business
Regulation
68
Worldline
2016 Registration Document
member state or through an agent.
services, through a subsidiary or a branch located in the host
obtain a license from that state, either pursuant to the European
any other European Union member state without having to
(a system referred to as the “European passport”). Worldline
principal of freedom to provide services or through a subsidiary
Czech Republic, Germany, Spain, France, the United Kingdom,
NV/SA’s license in Belgium has been “passported” to Austria, the
Bulgaria, Croatia, Denmark, Estonia, Finland, Iceland, Lithuania,
Italy, Luxembourg, the Netherlands, Norway, Poland, Slovakia,
Sweden, Cyprus and Hungary. Worldline NV/SA has also a a
Malta, Romania, Slovenia, Greece, Ireland, Latvia, Portugal,
NV/SA, a subsidiary of the Group located in Belgium, possesses
In order to be able to carry out its regulated activities, Worldline
out the services described above. In accordance with the
a payment institution license in Belgium, which allows it to carry
that are licensed in one European Union member state are
European Regulations described above, payment institutions
allowed to establish themselves or provide payment services in
subsidiary in the Czech Republic and a branch in Slovakia.
Also, the payment institution license held by Paysquare, a
Austria, Finland, France, Germany, Luxemburg, Poland, Portugal,
Worldline BV subsidiary, in the Netherlands, was “passported” in
Spain and in the United-Kingdom.
Group is subject to more extensive prudential constraints,
could affect the terminals sold by the Group. Accordingly, the
Worldline NV/SA was required to have around €
35
million in
especially as pertains to own funds requirements. For example,
own funds during the fourth quarter of 2016.
prudential regulations. The Group also has vigilance and
beneficiaries of payment transactions. The European Union
reporting requirements regarding the identity of its clients and
stricter prudential regulations in light of the specific activity of
member states’ national regulatory authorities may impose
Belgian entity Worldline NV/SA has a “hybrid” license as a result
the regulated payment institution. For example, the Group’s
to the Belgian regulatory authority, represents a potential risk to
of its payment terminal manufacturing business that, according
its payment services activities, given security flaws or failures
Payment institutions are subject to specific regulations resulting
controls procedures that they must put in place to comply with
from the PSD, in particular in regard to own funds and internal
laundering measures, corporate governance rules and
the various applicable regulations, such as anti-money
developing client-oriented applications for terminals. The Group
out the activities of a payment institution, or in its role as
is subject to these requirements either as a result of its carrying
a subcontractor, the Group acts as a processor on behalf of
subcontractor carrying out the activities of credit institutions. As
compliance with the regulations applicable to credit institutions.
credit institutions and must therefore provide its services in
outsource to the Group (for which the Group does not require a
For a description of the services that credit institutions
license), see Section
6.9.1.2, “Regulations applicable to
As a provider of these services, the Company is required to
ancillary services, such as issuing confirmation receipts for
comply with certain administrative obligations and provide
services, monitoring and maintaining hardware and software or
transactions (in paper or electronic format), providing installation
outsourced credit and payment institution activities”.
actively to the consultation of EBA developing RTS and GL in
2016 and 2017.
to the iDEAL and MyBank e-payment platforms and Sips card
activities carried out by the Group, in particular services related
authentication and authorization procedures that would be
payment platform, and would require a review of the
Group’s payment platforms, as necessary, so as to comply with
implemented in the context of PSD2 in order to adjust the
Section
6.5, “The Group’s business” of this Registration
the applicable regulation. For a description of these services, see
program to analyze and mediate the impacts and to contribute
Document. Worldline has set up an internal PSD2 transformation
the date of entry into force. The directive enlarges the scope of
for in the PSD and extending its applicability to “third-party
the existing PSD regulation by limiting the exemptions provided
payment account services or payment initiation services
payment service providers” who provide remote access to
by other payment service providers. PSD2 will result in the
through online platforms in relation to payment accounts held
services and services for accessing account payment balances.
creation of new regulations applicable to payment initiation
This directive could have an impact on certain payment
The regulations applicable to payment services are constantly
Directive (PSD2) entered into force. By January
13-, 2018,
changing. On January
13, 2016-, the revised Payment Services
to comply with this directive -as PSD1 Directive 2007/64/EC is
Member States shall adopt and publish the measures necessary
European Banking Authority EBA is mandated to develop 6
repealed with effect from that date. For implementation the
(GL) within defined deadlines ranging from 12 to 24 months after
Regulatory Technical Standards (RTS) and 5 sets of Guidelines
Finally, the Group has indirect access to the interbank payment
clearing operations processed in the context of the Group’s
systems, in order to carry out payment transactions and
certain specific operational regulations developed by the
Commercial Acquiring activities. The Group is thus subject to
in France and the CORE (Compensation Retail) system in
companies that manage these interbank systems, such as STET
Belgium.
follow legislative and regulatory developments applicable to its
The Group has implemented an internal monitoring system to
activities.