Consultation: Civil preparedness for payments

The Central Bank of Sweden, Riksbank, has launched a new consultation on a proposed new regulation as regards the contingency planning of key players involved in the payment sector. The consultation is part of Riksbank’s mission to ensure continuity in payments in case of substantial stress or harms in the industry – or, as Riksbank calls it, in „peacetime crisis situations and high alert“ – in accordance with its new powers and functions under the Riksbank Act 2022.
Specifically, Riksbank seeks to require certain firms identified as significant entities in the payments industry as described at the end of the summary to
– establish policies and procedures (contingency plans) that describe how they will maintain the payment part of their businesses in „peacetime crisis situations and high alert“;
– identify those functions and staff members that are necessary to maintain the payment operation in such times;
– ensure that they have access to information systems, premises, and equipment needed to maintain the payment operation in crisis situations and during high alert times;
– document and at least annually review their contingency plans;
– annually test their contingency plans and document any shortcomings;
– develop a long-term training program for staff members and external employees to prepare for crisis situations and to ensure that the plans are working as intended;
– participate in Riksbank’s corresponding „civil preparedness for payments“ program, including participation in training course, in evaluations of payment flows, or in information sharing exercises, to name a few; and
– designate a contingency planning contact person within their firms.
According to the enclosed proposed new regulation, this first legal act would apply to central securities depositories (CSDs), clearing agencies, financial institutions, including branches of foreign banks located in Sweden, beyond a certain deposit volume threshold, companies engaged in the provision of payment applications for instant money transfers, and several others. Other acts are expected to follow to extend the scope of application to other firms as well.
As far as the definition of „payments by the general public“ are concerned, which is central for the definition of in-scope firms, Riksbank states the following: „Payments by the general public are defined as payments by households and companies with banknotes and coins and electronic payments with account balances and electronic money in accordance with the Electronic Money Act (2011:755)“.