--- title: "EBA Q&A 2023_6882 — Q&A — Safeguarding with a credit institition in a third country [Final Q&A]" shortTitle: "EBA Q&A 2023_6882 — Q&A — Safeguarding with a credit institition in a third country [Final Q&A]" answer_id: EBA_QA_2023_6882 status: "Final Q&A" type: qa instrument_type: qa authority: EBA binding: false binding_character: non_binding legal_status: in_force regulation: "PSD2" psd2_level3: true mica_level2: false legal_basis: "Article 10(1) PSD2" date: 17 January 2025 source_link: https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2023_6882 lifecycle: "Final Q&A" text_version: "EBA Q&A register, 17 January 2025" source_url: "https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2023_6882" check_status: matched verified: true last_checked: 2026-10-26 checked_against: "the EBA publication" source: prepared_by: "European Commission" published_by: "EBA" published_in: "EBA Single Rulebook Q&A tool" evidence: prepared_by: "Answer prepared by the European Commission because it is a matter of interpretation of Union law." locator: "EBA Q&A register entry 2023_6882, field 'Answer prepared by'" document_type: "qa_answer" legal_nature: "not_legislation" addressees: "not stated in the document" dates: published_on: "2025-01-17" question_submitted_on: "2023-09-13" locators: published_on: "EBA Q&A register entry 2023_6882, field 'Final publishing date'" question_submitted_on: "EBA Q&A register entry 2023_6882, field 'Submission date'" lifecycle_label: "Final Q&A" --- **Answer prepared by the European Commission, published in the EBA Q&A tool · not legislation · published 17 Jan 2025 [Final Q&A]** *Final Q&A · EBA Q&A register, 17 January 2025 · Checked against the EBA publication on 26 Oct 2026 · [Official source](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2023_6882)* | | | |---|---| | **Full title** | EBA Q&A 2023_6882 — Q&A — Safeguarding with a credit institition in a third country \[Final Q&A\] | | **Prepared by** | European Commission | | **Published by** | EBA, in the EBA Single Rulebook Q&A tool | | **Reference** | EBA_QA_2023_6882 | | **Document type** | Q&A | | **Legal nature** | Not legislation | | **Addressees** | Not stated in the document | | **Dates** | Published 17 January 2025; question submitted 13 September 2023 | | **Legal basis** | Article 10(1) PSD2 | | **Related instruments** | None recorded | | **Text on this page** | Word for word — the full text of the EBA publication | **Safeguarding with a credit institition in a third country** ### Question May a PI authorised and operating in an EU Member State use a credit institution based in a third country (e.g. UK) for the purpose of safeguarding funds in accordance with Art. 10(1)(a) of PSD2? ### Background This topic is important as the number of banks offering safeguarding services is increasingly limited. *** ### Answer Article 10 of PSD2 requires payment institutions (PIs) to safeguard funds which have been received from the payment service users or through another payment service provider for the execution of payment transactions, using one or several of the safeguarding methods set out in that Article. Article 10(1)(a) of PSD2 refers to funds deposited in a separate account with a credit institution or invested in secure, liquid low-risk assets, as defined by the competent authorities of the home Member State. The term ‘Credit Institution’ as defined in Article 1(a) of PSD2 refers to Article 4(1)(1) of Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms (the CRR) “including branches thereof \[...\] where such branches are located in the Union, whether the head offices of those branches are located within the Union or, in accordance with Article 47 of Directive 2013/36/EU and with national law, outside the Union”. Article 4(1)(1) of CRR defines a credit institution “as an undertaking the business of which is to: (a) take deposits or other repayable funds from the public and to grant credits for its own account \[...\]”. This definition applies to institutions authorised to operate within the EEA. As highlighted in Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (CRD), in conjunction with Article 14 of Regulation (EU) No 1024/2013, the granting of licences to credit institutions remains in the remit of the competent national authorities under the ECB’s control and final responsibility. It follows from the above that the reference to a ‘credit institution’ in Article 10(1)(a) of PSD2 refers only to credit institutions authorised in the EU/EEA. and branches that are authorised to operate in the EU/EEA of undertakings established in a third country as referred to in Article 47 Directive 2013/36/EU. Disclaimer: The answer clarifies provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts. *** **Source:** [EBA original document](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2023_6882) ## Related Level 1 articles - [Article 10 — Safeguarding requirements](../../../articles/10.md)