EU Payment Services Directive (PSD2) Art.19_20: Use of agents and outsourcing rules (PSD2 Articles 19 and 20)

Article 19 permits payment institutions to use agents to provide payment services in the name of the PI. Agents must be entered into the EBA register; the PI must communicate to the home Member State the agent's name + address + suitability of directors / persons responsible for AML / CFT + payment services to be provided. The PI remains fully liable for the conduct of its agents. Article 20 governs operational outsourcing: outsourcing of important operational functions, including IT systems, must not impair materially the quality of the PI's internal control + the ability of the competent authority to monitor; it must not deteriorate the conditions for authorisation; not affect the relationship + obligations of the PI to its PSUs; not affect PI's contractual obligations to home + host Member States. Article 20(2) prohibits letter-box-entity outsourcing arrangements; Article 20(3) requires the PI to notify the competent authority of important outsourcing arrangements.