Germany: BaFin Announces Commencement Date for Strong Customer Authentication for Online Direct Debits

On April 17, 2019, the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) announced that, as of September 14, 2019, Article 55(1) of the Payment Services Supervision Act (Zahlungsdienstaufsichtsgesetz – ZAG), which is in compliance with the requirements laid out in Article 97 of the revised Payment Services Directive (PSD2), will come into force.

BaFin points out that, as of that date, payment service providers will be required to apply strong customer authentication measures in cases where payers are accessing their payments accounts online, initiating electronic payment transactions or carrying out any action through a remote channel which may imply a risk of payment fraud or other abuses.

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