Telephone call, Netherlands: EU allows payments providers to pause SEPA Instant Credit Transfers for up to 3 days

The Netherlands' central bank, De Nederlandsche Bank (DNB), announced on Wednesday, July 13, 2023, that it has granted payment service providers in the country the ability to pause SEPA Instant Credit Transfers (SCT Inst) for up to three days.

The move has been made in order to protect banks and consumers from fraud and cyberattacks.

The decision was made after the European Central Bank (ECB) gave national central banks in the Single Euro Payments Area (SEPA) the authority to temporarily suspend SCT Inst on an emergency basis. The ECB's decision was a response to increasing concerns about the risks of fraud and cyberattacks involving instant payments.

Prior to the ECB's decision, only the European Payments Council (EPC) was able to order a suspension of SCT Inst. However, the EPC's process was time-consuming and could take several days to implement. The ECB's new authority allows national central banks to act more quickly to protect the financial system.

The DNB said that it would use its new authority to suspend SCT Inst only in exceptional circumstances, such as when there is a clear and present danger of fraud or a cyberattack. The DNB said that it would also consult with the EPC before making any decision to suspend SCT Inst.

The DNB's decision has been welcomed by the Dutch banking industry. The Dutch Banking Association (NVB) said that the move would help to protect banks and customers from fraud and cyberattacks. The NVB also said that it would work with the DNB to ensure that the new authority is used in a responsible and proportionate manner.

The ECB's decision and the DNB's implementation of it are important steps in protecting the European financial system from fraud and cyberattacks. The new authority will allow national central banks to act more quickly to protect the financial system, and it will also provide banks and customers with greater peace of mind.