# PSD3 Article 34 — Optional exemptions

Textual state: amended_substantial. 84 words changed

- Current text: Council final compromise text (Council document 8222/26) — not yet law.
- Compared against: COM(2023) 366 final — superseded.
- Classification is mechanical; method: https://paymentslaw.eu/method/
- Editorial review state: not_assessed. Markers are curated and selective, not a complete assessment.

Word-level diff, proposal → compromise: `{+text+}` was inserted, `[-text-]` was deleted.

## Paragraph 1

1. Member States may exempt, or allow their competent authorities to exempt, natural or legal persons providing {+any of the +}payment services as referred to in Annex I, points [-1 -]{+(1) +}to [-5, or providing electronic money services -]{+(5), and (8) +}from the application of all or part of the procedures and conditions set out in Chapter I, Sections 1, 2 and 3, with the exception of Articles 17, 18, 24, 26, 27 and 28, where: (a) in the case of payment [-services, -]{+services referred to points (1) to (5) of Annex 1, +}the monthly average of the preceding 12 months’ total value of payment transactions executed by the person concerned, including any agent for which the person concerned assumes full responsibility, does not exceed a limit set by the Member State but that, in any event, amounts to no more than EUR 3 million; or (b) in the case of [-electronic money services, -]the {+payment service referred to in point (8) of Annex 1, the +}total business activities generate an average amount of outstanding electronic money that does not exceed a limit set by the Member State but that, in any event, does not exceed EUR 5 million; and (c) in the case of payment services {+referred to in Annex I, points (1) to (5) +}and [-electronic money services, -]{+(8), +}none of the natural persons responsible for the management or operation of the business has been convicted of offences relating to money laundering or terrorist financing or other financial crimes. For the purposes of the subparagraph, point (a), the assessment of whether the limit has been exceeded shall be based on the projected total amount of payment transactions in its business plan, unless the competent authorities have required an adjustment to that plan. Where a payment institution providing [-electronic money services -]{+the payment service referred to in point (8) of Annex 1 +}also offers any {+other +}payment service or any of the activities referred to in Article 10, and the amount of outstanding electronic money is unknown in advance, the competent authorities shall allow that payment institution to apply the first subparagraph point (b), on the basis of a representative portion assumed to be used for the [-electronic money services, -]{+payment service referred to in point (8) of Annex 1, +}provided that such a representative portion can be reasonably estimated on the basis of historical data and to the satisfaction of the competent authorities. Where a payment institution has not completed a sufficiently long period of business, that requirement shall be assessed on the basis of projected outstanding electronic money evidenced by its business plan subject to any adjustment to that plan required by the competent authorities. Member States may also provide for the granting of the optional exemptions to be subject to an additional requirement of a maximum storage amount on the payment instrument or payment account of the consumer where the electronic money is stored. A natural or legal person benefitting from an exemption under paragraph 1, first subparagraph, point (b), may provide payment services not related to [-electronic -]{+issuing +}money [-services -]only in accordance with paragraph 1, first subparagraph, point (a).

## Paragraph 2

2. Member States shall require any natural or legal person exempted from the application of the procedures and conditions referred to in paragraph 1 to register with the competent authority of the home Member State. Member States shall determine the documentation which shall accompany such request for registration, from the elements listed in Article 3(3) points (a) to (s).

## Paragraph 3

3. Member States shall require any natural or legal person registered in accordance with paragraph 2 to have its head office or place of residence in the Member State in which it actually carries out its business.

## Paragraph 4

4. The persons exempted from the application of the procedures and conditions referred to in paragraph 1 shall be treated as payment institutions. Article 13(6) and Articles 30, 31 and 32 shall not apply to those persons.

## Paragraph 5

5. Member States may provide that any natural or legal person registered in accordance with paragraph 2 may engage only in certain activities listed in Article 10.

## Paragraph 6

6. The persons exempted from the application of the procedures and conditions referred to in paragraph 1 shall notify the competent authorities of any change in their situation which is relevant to the conditions specified in that paragraph, and at least annually, on the date specified by the competent authorities, report on the following: (a) the average of the preceding 12 months’ total value of payment transactions where they provide payment services; (b) the average outstanding electronic money where they [-provide -]{+issue +}electronic [-money services. -]{+money.+}

## Paragraph 7

7. Member States shall take the necessary steps to ensure that where the conditions set out in paragraphs 1, 3 or 5 of this Article are no longer met, the persons concerned shall seek authorisation within 30 calendar days in accordance with Article 13. Member States shall ensure that their competent authorities are sufficiently empowered to verify continued compliance with this Article.

## Paragraph 8

8. Paragraphs 1 to 6 of this Article shall be without prejudice to Directive (EU) 2015/849 or of national laws on anti-money laundering or terrorist financing.