Consumed by Sanctions

Dutch payment service providers are required to perform sanction screening on each of its relationships. This contribution zooms in on the recent discussions and interpretation within the payments sector concerning the definition of a relationship for purposes of sanction screening, the extent of the obligation to screen relationships and whether such a requirement extends to the customers of a payment service provider's customers, namely the consumer. This contribution addresses the question of whether, from a legal perspective, a consumer should be construed as a relationship and highlights the impracticalities, disproportionality and near impossibility for a payment service provider to perform effective sanction screening on a consumer.

1. The start of the sanction regime in the Netherlands

In 1980, the Dutch Sanctions Act (Sanctiewet 1977) (the "Sanctions Act") took force in the Netherlands. Whilst there have been several...

Verder in dit artikel:

1. The start of the sanction regime in the Netherlands

2. Topic of debate

3. Purpose of sanction regulations

4. Regulatory framework of sanctions in the EU

5. The role of a collecting  PSP

6. Legal Framework

6.1. A Consumer is not a relationship of a PSP

6.2. Disruption of a level playing field

6.3. A practical impossibility to screen Consumers

6.4. Proportionality

7. Next steps for PSPs