Date: 2019-10-18Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Implementing Decision (EU) 2019/1738 of 16 October 2019 authorising the Kingdom of Denmark to conclude agreements with Greenland and the Faroe Islands respectively for transfers of funds (notified under document C(2019) 7302) (Only the Danish text is authentic)
Issued by European Commission
· Directorate-General for Justice and Consumers
**Executive Summary:**
This Commission Implementing Decision (EU) 2019/1738, dated 16 October 2019, authorizes the Kingdom of Denmark to enter into agreements with Greenland and the Faroe Islands. These agreements will allow fund transfers between Denmark and these territories to be treated as domestic transfers under Regulation (EU) 2015/847. The decision repeals Commission Decision 2012/43/EU.
**Key Points / Main Content:**
* **Authorization for Agreements:**
* Denmark is authorized to conclude agreements with Greenland and the Faroe Islands.
* These agreements will treat fund transfers between Denmark and these territories as domestic transfers.
* **Compliance with Regulation (EU) 2015/847:**
* Greenland and the Faroe Islands comply with criteria for derogation under Article 24 of Regulation (EU) 2015/847 because:
* They are part of the Danish currency area.
* Their payment service providers participate directly in Danish payment systems (Kronos and Sumclearing).
* They have incorporated provisions corresponding to Regulation (EU) 2015/847 into their legal order via Law No. 325/2019 (Faroe Islands) and Law No. 326/2019 (Greenland).
* **Repeal of Previous Decision:**
* Commission Decision 2012/43/EU is repealed.
**Impact Analysis:**
**Kingdom of Denmark**
* *Impact:* Authorized to formalize agreements with Greenland and the Faroe Islands, simplifying fund transfer regulations.
* *Action Required:* Conclude agreements with Greenland and the Faroe Islands to implement the provisions of this decision.
**Greenland and the Faroe Islands**
* *Impact:* Fund transfers to and from Denmark will be treated as domestic transfers, potentially reducing compliance burdens and costs.
* *Action Required:* Ensure continued compliance with provisions corresponding to those of Regulation (EU) 2015/847 in their legal orders.
**Payment Service Providers in Greenland and the Faroe Islands**
* *Impact:* Continued participation in Danish payment and settlement systems is recognized.
* *Action Required:* Maintain compliance with relevant regulations to ensure smooth fund transfers with Denmark.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
Kingdom of Denmark: A sovereign state in Northern Europe, specifically authorized to conclude agreements with Greenland and the Faroe Islands regarding fund transfers.
Greenland: An autonomous constituent country within the Kingdom of Denmark, subject to agreements regarding fund transfers.
Faroe Islands: An autonomous constituent country within the Kingdom of Denmark, subject to agreements regarding fund transfers.
Regulation EU 2015/847: A regulation of the European Parliament and of the Council on information accompanying transfers of funds.
Treaty on the Functioning of the European Union: One of the primary treaties of the European Union, providing the legal basis for EU law.
Commission Decision 2012/43/EU: A Commission decision authorizing the Kingdom of Denmark to conclude agreements with Greenland and the Faroe Islands for transfers of funds.
Committee on the Prevention of Money Laundering and Terrorist Financing: A committee whose opinion is in accordance with the measures provided in the decision.
L 265/10 E N O f f i c i a l J o u r n a l o f t h e E u r o p e an Union 18.10.2019
COMMISSION IMPLEMENTING DECISION (EU) 2019/1738
of 16 October 2019
authorising the Kingdom of Denmark to conclude agreements with Greenland and the Faroe Islands
respectively for transfers of funds
(notified under document C(2019) 7302)
(Only the Danish text is authentic)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on
information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (1), in particular Article 24
thereof,
Having regard to the Kingdom of Denmark’s request pursuant to Article 24 of Regulation (EU) 2015/847,
Whereas:
(1) Under Commission Decision 2012/43/EU (2), Denmark was granted a derogation in respect of transfers of funds
between Greenland and the Faroe Islands respectively and Denmark.
(2) On 1 May 2019, Denmark requested the renewal of the derogation in accordance with Article 24 of Regulation (EU)
2015/847 for transfers of funds between Greenland and the Faroe Islands respectively and Denmark.
(3) Member States were informed by written procedure of the Committee on the Prevention of Money Laundering and
Terrorist Financing on 19 July 2019 that the Commission considered that it had received the information necessary
for appraising Denmark’s request.
(4) Neither Greenland nor the Faroe Islands form part of the territory of the Union as determined in accordance with
Article 52 of the Treaty on European Union and Article 355 of the Treaty on the Functioning of the European
Union. Those territories form part of the currency area of Denmark. Greenland and the Faroe Islands therefore
comply with the criterion set out in point (a) of the second subparagraph of Article 24(1) of Regulation (EU)
2015/847.
(5) Payment services providers in Greenland and the Faroe Islands participate directly in payment and settlement
systems in Denmark, in particular Kronos and Sumclearing. They therefore comply with the criterion set out in
point (b) of the second subparagraph of Article 24(1) of Regulation (EU) 2015/847.
(6) For the Union regulations to be applicable to Greenland and the Faroe Islands, Denmark should adopt specific
legislation to that effect. Denmark’s adoption of Law No 325 of 30.3.2019 for the Faroe Islands and Law No 326 of
30.3.2019 for Greenland ensures that those territories have incorporated into their legal order provisions
corresponding to those of Regulation (EU) 2015/847.
(7) Therefore, Greenland and the Faroe Islands have adopted the same rules as those established under Regulation (EU)
2015/847 and require their respective payment service providers to apply them, thus fulfilling the criterion set out
in point (c) of the second subparagraph of Article 24(1) of that Regulation.
(8) It is therefore appropriate to grant to Denmark the requested derogation.
(1) OJ L 141, 5.6.2015, p. 1.
(2) Commission Decision 2012/43/EU of 25 January 2012 authorising the Kingdom of Denmark to conclude an agreements with
Greenland and the Faroe Islands for transfers of funds between France and each of these territories to be treated as transfers of funds
within Denmark, pursuant to Regulation (EC) No 1781/2006 of the European Parliament and of the Council (OJ L 24, 27.1.2012,
p. 12).18.10.2019 E N O f f i c i a l J o u r n a l o f t h e E u r o p e a n Union L 265/11
(9) The measures provided for in this Decision are in accordance with the opinion of the Committee on the Prevention
of Money Laundering and Terrorist Financing,
HAS ADOPTED THIS DECISION:
Article 1
The Kingdom of Denmark shall be authorised to conclude an agreement with Greenland and the Faroe Islands respectively,
to the effect that transfers of funds between any of those territories and Denmark are treated as transfers of funds within
Denmark for the purposes of Regulation (EU) 2015/847.
Article 2
Decision 2012/43/EU is repealed.
Article 3
This Decision is addressed to the Kingdom of Denmark.
Done at Brussels, 16 October 2019.
For the Commission
Věra JOUROVÁ
Member of the Commission