Positions

EFA Policy Statement on e-IDAS Regulation

October 7, 2021

The European FinTech Association (EFA) welcomes the European Commission’s (Commission) proposal on the review of the e-IDAS regulation as a significant and positive step towards removing cross-border barriers in the EU, and building a more harmonized and accessible financial services landscape for European businesses and consumers.

You can find the PDF version of the policy statement here.

Ensuring Cross-border Harmonization on all Levels

As highlighted in EFA’s position paper, the proposed e-ID regulation can have substantial benefits for harmonization: It proposes  the acceptance of a common standard for e-ID across the EU, creating an interoperable environment for digital identification across European jurisdictions, and removing gold plating on a national level.

However, while the proposal for a regulation aims to put in place common rules across the EU, harmonisation needs to occur on all levels. In order to ensure the broad acceptance and interoperability of e-ID solutions across Member States, the EFA would like to stress the importance of a uniform implementation. In this context, it is significant that the toolbox being developed by Member States creates common technical characteristics, standards, and practices. This would avoid any divergences and allow for the cross-border use of e-ID solutions.

This will enable European FinTechs to have broader market access, reduce regulatory costs, and to scale-up cross border. More importantly, European citizens will experience a more effective, safer, and inclusive customer journey.

Effectively Tackling Money Laundering

A stronger e-IDAS mechanism and harmonization of rules will enhance European FinTechs’ ability to tackle money laundering and terrorist financing (ML/TF).

Even though the regulation lists several services as qualified trust services, such as electronic archiving services or seal creation devices, this list could be more ambitious, e.g. by establishing both remote identity verification services and remote identity authentication services as qualified trust services.

Remote identity verification services and remote identity authentication services serve a crucial dual role. From an ML/TF perspective, the use of technology, such as biometrics, enables effective compliance with the “know your customer” principle. At the same time, these services provide European consumers with a trusted and seamless identification experience. Listing them as qualified trust services would ensure a level-playing field, fostering innovation in this space, and leading to even better customer journeys.

Overall, we support the Commission’s initiative as a first step towards a truly harmonized and interoperable framework in the EU, which can enable innovation, scalability, and broader market access for European FinTechs.

More Positions

EFA Position Paper on the Revised Payment Services Directive 2

The European FinTech Association (EFA) welcomes the European Commission’s (Commission) review of the Payment Services Directive 2 (PSD2). PSD2 has delivered a more innovative, competitive payments landscape in Europe, however, challenges remain in its implementation.

July 13, 2022

arrow

EFA Position Paper on Open Finance

The European Fintech Association’s (EFA) vision is for European FinTechs to be the most innovative and competitive in the world, providing European consumers with solutions to meet their individual needs. If done right, the open finance framework can prove to be a game changer for the industry.

July 13, 2022

arrow

EFA Statement on the Transfer of Funds Regulation

The European FinTech Association (EFA) welcomes the efforts of the European Commission, Council, and European Parliament on the proposed anti-money laundering package which will ensure a harmonized European framework to prevent money laundering and counter-terrorist financing (ML/TF) in the EU.

June 21, 2022

arrow