CESOP FAQs Version 2: Five key takeaways

• The European Commission has released Version 2 of the FAQs for the CESOP, which includes amendments and nuances from the draft FAQs.
• The updated FAQs include changes in the DG TAXUD’s points of view, particularly on nil reporting, determining the location of the payer and payee, and aggregation by PSPs.
• The FAQs can be downloaded, including a Deloitte summary of all questions and answers from both versions.
• The CESOP legislation only requires reporting for cross-border payments, and PSPs should address their national authorities for nil reporting.
• The location of the payer and payee can be determined through different identifiers depending on the payment product used.
• Aggregating payments for threshold calculation is expected to be a best effort obligation for PSPs due to the complexity of reconciling data elements.

Source Deloitte

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