The law governing eMoney and ePayment is a relatively recent addition to banking supervisory law, an area of law that is based on Directives with Community-wide applicability. The increasing digitalisation of all areas of the economy requires not only technically safe, innovative, internet-based or card-supported solutions for the processing of transactions through eMoney, but also a safe legal framework for the providers of such payment services.
We provide consultancy services for companies who offer services in the area of ePayment as one of their major services or as a supplement to their product and service portfolio, or who cooperate with ePayment providers or credit card companies as intermediaries. This covers in particular the task of presenting legal design options as well as the preparation of the contractual framework, based on our clients’ specific requirements.
The focus of our consultancy services in this area includes:
- Verification of licensing requirements pursuant to Section 18 of the Payment Services Supervisory Law (ZAG)
We advise our clients with regard to the establishment of payment structures for eMoney, and examine whether it is necessary to obtain a banking license, including the corresponding organisational requirements for business operations. In this context, the main issues are from the areas of anti-money-laundering, account management and reporting.
- Legal accompaniment of the licensing procedure pursuant to section 18 of the ZAG
Furthermore, we accompany application procedures under supervisory law with the objective of obtaining a banking license and, possibly, other licenses under banking supervisory law in Germany and abroad. In this context, the advantages of the so-called EU Passport may be able to be used, provided that the services that require licensing are intended to be offered in several EU member states.
The legal framework for offering online games of chance in Germany, through domestic or foreign providers of games or through intermediaries, is very complex and inconsistent with regard to some aspects. The consequence of this is that attempts have repeatedly been made by the competent legislative body to involve companies who offer ePayment services in the combat and supervision of allegedly illegal gambling.
The objective in this context is to involve the banks and ePayment providers in the supervision of eMoney transactions relating to gaming and gambling providers by requiring that such transactions comply with the requirements under gambling law regarding players and providers of games.
Also, certain payments that are connected with allegedly illegal online gambling in Germany are intended to be blocked. The above Payment Blocking is associated with various unanswered legal and liability issues for banks and ePayment providers.