SEPA Migration Checklist

Dear client,

Single Euro Payments Area (SEPA) standards become mandatory across 17 Euro member states on 1 February 2014. If your organisation initiates Euro ACH payment or direct debits, action needs to be taken to ensure compliance. This email series is intended to provide you with relevant information and practical guidance.

What are Additional Optional Services (AOS)?

AOS are optional services that may be provided by either individual or a community of banks/ payment service providers (PSP). Banks' customers are at free to choose whether they wish to utilise such services.

The are two types of AOS:

  1. AOS provided by banks / PSPs to their customers as value-added SEPA services.
  2. AOS provided by local, national and pan-European communities of banks / PSPs. This may include, for example, the use of additional data elements in the ISO 20022 XML Standards, or be relating to community-provided delivery channels for customers, e.g. Finland introduced two AOS during the Finnish market migration to SEPA Credit Transfers in 2011.

Banks and / or PSPs may only offer AOS in accordance with the following principles:

  • SEPA regulation and rulebook states that interoperability between all banks / PSPs shall prevail. All AOS must not compromise this requirement of the SEPA Scheme nor create barriers to competition.
  • AOS are part of the market space and should be established and evolve based on market needs. Based on these market needs, the European Payment Council (EPC) may incorporate commonly used AOS features into the SEPA Scheme(s).
  • There should be transparency in relation to community AOS. In particular, details of community AOS relating to the use of data elements present in the ISO 20022 XML Standards (including any community usage rules for the SEPA core mandatory subset) should be disclosed on a publicly available website (in both local language(s) and English).

For more detailed information on AOS and a list of operational AOS that have been advised to EPC, please visit the following links: SEPA Credit Transfers and SEPA Direct Debit Core and SEPA Direct Debit B2B.

To put our expertise to work for you today, please contact your Citi representative or visit our SEPA website at www.transactionservices.citi.com/SEPA where you can also find previous SEPA topics covered in this series.

Regards,
Treasury and Trade Solutions

Treasury and Trade Solutions

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