4MLD implementation: EMA letter to the Dutch Ministry of Finance

4MLD implementation: EMA letter to the Dutch Ministry of Finance

In the letter submitted on 9 August, we welcomed proposals to implement Articles 12 and 15 of 4MLD into Dutch law and set out our position in relation to the local point of contact. We also explained the rationale for our concerns about the application of local law to distributors of e-money in the Netherlands.

We provided two significant reasons as to why local a point of contact is not an appropriate means of exercising control over passporting EMIs, and encouraged the Dutch government to reconsider the draft law:

  • As distributors are not involved in offering a regulated service and issuing, they have very little insight into the use of e-money. The Dutch regulator is better off using a contact point located within the central office, where they can access all internal systems and data directly.
  • Distributors do not constitute establishment under EU law, and issuers passporting cross-border through the use of distributors should therefore not be required to comply with local AML legislation, which is not envisaged by Art. 45(9).

The EMA’s full response can be found here.