1. Payments Core User Guide
  2. Payments Core Processes
  3. EU Payer Regulatory Maintenance
  4. EU Payer Rules

EU Payer Rules

You can set up scenario-based Rule at the Branch (Host) level to detect the set of Payments eligible for EU Payer monitoring and to configure the essential information to meet the compliance.

  1. On Homepage, specify PMDEURLE in the text box, and click next arrow.
    EU Payer Rule screen is displayed.

    Figure 3-10 EU Payer Rule

    Description of Figure 3-10 follows
    Description of "Figure 3-10 EU Payer Rule"
  2. Click New button on the Application toolbar.
  3. On EU Payer Rule screen, specify the fields.
    For more information about the fields, refer to field description below:

    Table 3-6 EU Payer Rule - Field Description

    Field Description
    Host Code System defaults the Host Code of transaction branch on clicking ‘New’.
    Host Description System defaults the description of the Host Code.
    PSP Role
    Select the PSP Role from the following:
    • Payer
    • Payee
    • Intermediary

    The EU Payer Rules can be set-up for each of the ‘PSP Role’ listed for each Branch.

    The rules, as detailed in the table below, can be set-up to be applied on the Payment in the listed Priority Order, when the PSP plays the Role for each of the above.
    Network Code Specify the network code. Alternatively, you can select the network code from the list of values, for which the EU payer rule to be maintained.
    Network Type Description System defaults the Network Type Description on the Network code selected.
    Account Related Checks
    Preference flags are provided to denote whether the Missing Information validation has to be done based on:
    • Missing Value
    • Repeated characters
    • Meaningless Words

    If the missing information validation has to be done based on all the three conditions for an account, all the three flags are to be checked.

    For example: If Repeated character check is not a criteria for marking missing information for Account, 'Repeated character flag in the EU payer rule screen can be kept as unchecked.
    Name & Address Checks
    Preferences similar to Account related checks are available for Name & Address. The preferences maintained are applicable to both Name and Address fields.

    Note:

    All the new flags are checked by default. You can uncheck any of the flags as required.

    When Missing information check is required for address, by default the validation is required for all lines of address as available in the transaction. If any line in address is having value, it is considered as availability of data.

    Rule Name Specify the name of the rule.
    Rule Expression

    The expression can be filled in the Expression Details multi block. On the click of Populate button, the expression gets built and displayed in this field.

    To configure the Rule, the following set of elements are available.
    • Payer PSP
    • Payee PSP
    • Sender PSP
    • Receiver PSP
    • Payer PSP Country
    • Payee PSP Country
    • Sender PSP Country
    • Receiver PSP Country
    • Threshold Amount in transfer currency (as configured in the EU Payer Maintenance converted in transfer currency)
    • Payment Amount
    • Payment Currency
    • Payer PSP within EEA
    • Payee PSP within EEA
    • Sender PSP within EEA
    • Receiver PSP within EEA
    • Linked Payment (Y/N)
    • Is Sender Negative Compliant (Y/N)
    • Payer PSP in ML/TF Country (Y/N)
    • Payee PSP in ML/TF Country (Y/N)
    • Sender PSP in ML/TF Country (Y/N)
    • Receiver PSP in ML/TF Country (Y/N)
    • Payment Type
    • Source Code

    Note:

    If rule element value could not be evaluated, STP action for non-compliant transactions would be applied.

    Tracking for Linked Payments: Every Payment going through the System is logged into a data store, specifically created for EU Payer Reporting Purposes, provided either of the EU Payer flags are turned on.

    The following are the conditions to consider the current Payment as a Linked Payment:
    • The current Payment itself is below the Threshold amount as on the present date as set in the Preferences screen.
    • All Payments from the same Sending PSP (Payer PSP, for Payments, and Payee PSP, for Collections) as the current Payment are considered.
    • Further, all such Payments as above having the same Payer attributes for Account No are considered. Payee attributes are considered in the case of Collections.
    • Always consider Payee Account No attribute.
    • Further, all such Payments as above booked within the last X no. of days of the current Payment, X being the Tracking Days as set in the Preferences screen, are considered.
    • Further, all such Payments as above with Payment amount below the Threshold Amount as on the date of Booking are considered.
    • The Payment Threshold Amount aggregate of all such Payments as above and the current Payment should be above the Threshold Amount as on the present date.
    Payer and Payee Details
    For each Rule, below list of Payer/Payee fields can be checked as required for the rule:
    • Payer Name
    • Payer Account
    • Payer Address
    • Payee Name
    • Payee Account
    • Payee Address

    If the required information is missing or incomplete, it is considered as a compliance failure and STP Action will be applied.
    STP Action Refer below for more details.
    Priority Specify the priority for each rule. Based on the priority, rule gets executed.
    Expression Details --
    Expression Section Specify the unique sequence number for the expression defined.
    Scope Specify the Scope assigned to the Left operand.
    Operator Select the Operator details from the following:
    • Greater Than
    • Less Than
    • Not Equal To
    • Equal To
    • Greater Than or Equal To
    • Less Than or Equal To
    ROP Type Select the type of Right Operand from the following:
    • Expression
    • Constant
    ROP Data Type Select the Right Operand Data from the following:
    • String
    • Date
    • Number
    ROP Operand Specify the Right Operand from the list of values.
    Scope Specify the Scope assigned to the Right operand.
    Logical Operators Select the Logical Operator from the following:
    • And
    • OR
    Populate

    Click this button after specifying the expression details.

    Rule Required Information for Compliance Required Information for Compliance Required Information for Compliance Required Information for Compliance Required Information for Compliance Required Information for Compliance STP Action
    Rule Payer Name Payer Account No Payer Address Payee Name Payee Account No Payee Address STP Action
    Payer PSP Country is a ML/ TF Country - - - - - - Suspend
    Payer PSP has a negative compliance record - - - - - - Suspend
    Payer PSP within the EEA - Y - - Y - Report – Missing Information
    Payer PSP outside of the EEA Y Y Y Y Y Y Suspend

    STP Action

    As long as the Rule is satisfied for the Payment and if it is non-compliant, the following STP Actions will apply.
    • Suspend: Suspend and moves the Payment to EU Payer Compliance Queue, irrespective of required Information on the Payment missing or otherwise.
    • Cancel: Payment will be auto-canceled. FX unwind (if applicable) and Sanctions will be completed before cancellation.
    • Report – Missing Information: Process the Payment, but only Report when the Required Information on the Payment is missing.

    A PSP Entity or a PSP Entity Branch in any EU Member country can play the role of either a Payer PSP, a Payee PSP, or an Intermediary PSP.

    A PSP Entity or a PSP Entity Branch outside of the EU, when sending Payments to PSPs or IPSPs within the EU, can play the role of a Payer PSP for Payments, Payee PSP for collections or an Intermediary PSP.
    Scenario PSP Entity within the EU PSP Entity outside of the EU
    PSP – Payer Role Applicable Applicable
    PSP – Payee Role Applicable Not Applicable
    PSP – Intermediary Role Applicable Applicable

Parent topic: EU Payer Regulatory Maintenance