SEPA Migration Checklist
Single Euro Payments Area (SEPA) standards become mandatory across 17 Euro member states on 1 February 2014. If your organization 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 niche schemes and how do they impact your SEPA planning?
- During 2012, the European Parliament enacted into law a Regulation that set 1 February 2014 as the end date, within the Euro Member States, for the migration of Euro credit transfers and direct debits to SEPA standards.
- Under the regulation, Member States were permitted to categorise certain domestic credit transfer and direct debit schemes as “niche” schemes. Niche schemes would be granted an extended timeline until 1 February 2016 in order to become SEPA compliant.
- Possible niche schemes were those credit transfer and direct debit schemes that represented less than 10% of domestic payment activity. Member States had until 1 February 2013 to announce their niche schemes.
- In addition, Member States could also notify of extended timelines to implement sections of the SEPA Regulation relating to consumer payments, ISO 20022 XML and the usage of BIC information in SEPA payments and collections.
- The European Commission compiles information on niche schemes that have been announced by Member States. To date, only 18 out of 30 countries have announced their niche scheme plans. Of the Euro zone countries, 13 out of 17 countries have announced their niche schemes.
- Please see the following document which provides details of the relevant regulation, Member State options and announced niches schemes on a country-by-country basis. Citi has chosen to provide this update to you as it is uncertain when the remaining countries will announce their plans. Citi will continue to monitor country announcements and keep you informed.
- Document: Global Regulatory Bulletin: SEPA Niche Schemes (Click Link to open)
Factoring niche schemes into your SEPA plan
- Assess if your organization uses niche schemes today.
- Be aware that niche schemes will require the use of local accounts.
- Decide whether to continue using niche schemes or migrate to SEPA Direct Debit or SEPA Credit Transfer.
- Ensure your systems can cater for parallel SEPA scheme and niche scheme processing.
- Continue to stay abreast of changes before the 1 February 2016 timeline for niche schemes to move to SEPA standards.
SEPA has the ability to deliver real value to your organization. Citi is committed to delivering solutions that enable you to capitalize on the benefits that SEPA offers.
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
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