Regulation (EC) No 1781/2006 of the European Parliament and of the CouncilShow full title

CHAPTER III U.K. OBLIGATIONS ON THE PAYMENT SERVICE PROVIDER OF THE PAYEE

Article 8 U.K. Detection of missing information on the payer

The payment service provider of the payee shall detect whether, in the messaging or payment and settlement system used to effect a transfer of funds, the fields relating to the information on the payer have been completed using the characters or inputs admissible within the conventions of that messaging or payment and settlement system. Such provider shall have effective procedures in place in order to detect whether the following information on the payer is missing:

(a)

for transfers of funds where the payment service provider of the payer is situated in the Community, the information required under Article 6;

(b)

for transfers of funds where the payment service provider of the payer is situated outside the Community, complete information on the payer as referred to in Article 4, or where applicable, the information required under Article 13;

and

(c)

for batch file transfers where the payment service provider of the payer is situated outside the Community, complete information on the payer as referred to in Article 4 in the batch file transfer only, but not in the individual transfers bundled therein.

Article 9 U.K. Transfers of funds with missing or incomplete information on the payer

1. If the payment service provider of the payee becomes aware, when receiving transfers of funds, that information on the payer required under this Regulation is missing or incomplete, it shall either reject the transfer or ask for complete information on the payer. In any event, the payment service provider of the payee shall comply with any applicable law or administrative provisions relating to money laundering and terrorist financing, in particular, Regulations (EC) No 2580/2001 and (EC) No 881/2002, Directive 2005/60/EC and any national implementing measures.

2. Where a payment service provider regularly fails to supply the required information on the payer, the payment service provider of the payee shall take steps, which may initially include the issuing of warnings and setting of deadlines, before either rejecting any future transfers of funds from that payment service provider or deciding whether or not to restrict or terminate its business relationship with that payment service provider.

The payment service provider of the payee shall report that fact to the authorities responsible for combating money laundering or terrorist financing.

Article 10 U.K. Risk-based assessment

The payment service provider of the payee shall consider missing or incomplete information on the payer as a factor in assessing whether the transfer of funds, or any related transaction, is suspicious, and whether it must be reported, in accordance with the obligations set out in Chapter III of Directive 2005/60/EC, to the authorities responsible for combating money laundering or terrorist financing.

Article 11 U.K. Record keeping

The payment service provider of the payee shall for five years keep records of any information received on the payer.