Wolfsberg Group guidance on services to non-bank PSPs

The Wolfsberg Group has published new guidance on the challenges of providing banking services to non-bank PSPs. It notes that the high levels of intermediation between the originator and the beneficiary cause challenges in screening and monitoring which make it hard for the bank to manage the risks of having a non-bank PSP as its customer. Also, international regulators are sometimes not aligned in their views on regulation of these PSPs.

So the Wolfsberg Group has published a practical, risk-based guide expanding on existing guidance but addressing particularly the risks of non-bank PSPs as customers and with the intention of supporting innovation while still helping banks achieve compliance. The guide focuses on the risk-based approach and comprehensive risk management while also stressing the non-bank PSPs own obligations to ensure transparency of payment messages.