Payment institutions
October 21, 2011 | 70,00 EUR | answered by Jan Wilking
By creating a unified legal framework for payment transactions, payment institutions are now allowed to be established, which may provide the following services:
1) Deposit and withdrawal business
2) Payment business
3) Payment business with credit granting
4) Payment authentication business
5) Digitalized payment business
6) Financial transfer business
Now my three questions regarding point 1 above:
1. May a payment institution manage accounts for individuals (checking account) and businesses (business account, corporate account) like a regular bank?
2. Assuming the payment institution was founded in Germany and has the appropriate authorization: What is the situation regarding account management for individuals and companies from the EU and EU countries? Under what conditions may such individuals and companies open an account with the payment institution in Germany (where is this regulated, what needs to be submitted/checked/ensured)?
3. Are there any restrictions to be aware of? Can an offshore company open an account with the payment institution in Germany, if so - under what conditions (KWG)? How is this regulated?
Thank you.
Dear inquirer,
I am happy to answer your inquiry taking into account your description of the situation and your input as follows:
1. In principle, accounts can be set up at a payment institution, however, these payment accounts are limited compared to current accounts. A payment institution may not, outside the limits of § 2 para. 2 ZAG and its permission according to § 8 para. 1 sentence 1 ZAG, accept deposits or other repayable funds from the public in a commercial or business-like manner that requires a business operation set up in a commercial way (§ 2 para. 1 ZAG). Therefore, the payment institution may only process payment transactions through payment accounts held for payment service users. Balances on payment accounts held by the payment institution may not bear interest (§ 2 para. 2 sentence 2 ZAG). What constitutes a payment service is defined in § 1 para. 2 ZAG.
2. This is generally possible. The obligation to identify is regulated in particular in §§ 3 et seq. GWG, intensified by § 22 para. 3 ZAG.
3. Please understand that a detailed examination within the timeframe provided on this platform is not possible and would not be covered by your input. The main restrictions arise directly from the Payment Services Supervision Act (ZAG), so I recommend reading it. Regarding the opening of accounts for offshore companies, my initial research indicates that there is no difference compared to traditional credit institutions.
I hope to have provided you with a helpful initial orientation. If you have any uncertainties, please use the free follow-up function.
Please note that without knowledge of all circumstances, I cannot provide a definitive recommendation within the scope of an initial consultation. If you wish for a final assessment of the situation, I recommend contacting a lawyer and discussing the matter with them after examining all documents.
Best regards.
