EU acts to make cash transfers easier
Thursday 20 October 1994
Banks across the EU, including in Britain, have lobbied against legislation.
The British Bankers Association said this week that the legislation would force many banks to drop cross-border cash transmission for small sums completely because charges would never cover costs.
The proliferation of cash machines and credit cards has made it easy to get cash from a bank on demand virtually anywhere in the EU, but sending money from bank to bank can take days and cost between pounds 5 and pounds 30.
Another complaint is that payment can be delayed by correspondent banks abroad and that receiving banks often levy their own charges despite the sending bank saying it would handle all costs.
The Commission argues that such measures run counter to the spirit of the single market and that voluntary improvement by banks has failed. 'We have to show consumers that the single market is a reality, that it is effective and strong,' said Vanni d'Archirafi, the Commissioner responsible for the internal market, yesterday.
The measures will be presented to industry ministers at the end of the month. The Commission acknowledges that there will be more lobbying from the banks, which are being asked to begin implementing the measures voluntarily.
The proposed law will give banks six days to make a transfer, unless they have struck a different arrangement with the customer. Double charging will be illegal. The bank initiating the transaction will be liable for ensuring that the money reaches its destination.
The Commission has estimated that 200 million separate cross-border transactions of less than pounds 1,500 are made every year. As a sweetener to the industry, the Commission said it would interpret EU competition rules generously to allow banks to group together to create systems offering a transfer service with the maximum price fixed.
In response to industry complaints that most of their costs are due to the high notification charges made by the central banks, the Commission is also negotiating for payments of less than ecu2,000 not to appear on statistical statements.
- 1 What happens to your body when you give up sugar?
- 2 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 3 Have sex with your iPad thanks to the new sex toy no-one asked for
- 4 African jawbone discovery pushes birth of humanity back by 400,000 years
- 5 The 'sex selfie stick' lets you FaceTime the inside of a vagina
Out-of-touch MPs ‘don’t get it’, says ex-Civil Service chief
George Clooney and Amal fail to get special treatment at New York restaurant
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
African jawbone discovery pushes birth of humanity back by 400,000 years
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£8 per hour: Recruitment Genius: This Pension Specialist was established early...
£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...