CZECH REPUBLIC Law and Practice Contributed by: Ondřej Mikula, Jan Šovar and Markéta Klabouchová, FINREG PARTNERS
4.3 Sources of Funds for Fiat Currency Loans Lenders use various sources of funds, such as deposits, capital from private investors, or peer- to-peer lending. Regulatory requirements differ based on the source of the funds. Deposit-taking requires a credit institution licence, while public offerings of shares or bonds are subject to pro - spectus requirements, unless exempt. Raising funds through crowdfunding platforms is gov - erned by the Crowdfunding Regulation. In contrast, sources like factoring often have lighter regulatory requirements, typically only requiring registration with the Czech Trade Office and compliance with AML/CFT legislation. 4.4 Syndication of Fiat Currency Loans Loan syndication is primarily used by legacy players such as large banks to finance large projects, which are typically not closed online. In contrast, consumer and small business loans are generally not syndicated. When fintech plat - forms do syndicate loans, it is usually by trans - ferring credit risk to third parties through sub- participation. Depending on the structure, this may be subject to investment funds or invest - ment services regulation.
EC), is the Czech Express Real Time Interbank Gross Settlement System (CERTIS), which is the only interbank payment system that processes interbank payments in Czech crowns. 5.2 Regulation of Cross-Border Payments and Remittances Cross-border payments and remittances con - stitute payment services. Therefore, they are primarily regulated by the PSA, which is to be substantially revised in the coming years with the forthcoming PSD3/PSR/FIDA framework. The key focus of payment services regulation is to improve payment security and safety, enhance harmonisation across the EU member states and improve access to payment systems and financial data. In general, there is also a strong emphasis on the AML/CFT area, as reflected in the AML/CFT legislative package adopted last year, which aims to significantly harmonise and strengthen the AML/CFT rules across the EU, including by establishing a supranational AML/ CFT authority. Among other legislative acts that are especially relevant for cross-border payments is the Single Euro Payments Area (SEPA) Regulation (Regula - tion 260/2012) as it seeks to ensure that cross- border cashless euro payments across the EU as well as several non-EU countries can be made in a similar way to that of domestic payments. Regulation (EU) 2021/1230 on cross-border pay - ments in the EU establishes the principle that charges for cross-border euro payments are the same as for corresponding national payments within the EU. For card-based payments, Regu - lation (EU) 2015/751 is also relevant as it caps interchange fees for consumer debit and credit cards.
5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails
Payment processors can use existing payment rails or create new ones, but authorisation from the CNB is required to process payments, unless exempt. In the Czech Republic, the only payment system that is covered by the PSA, which implements the Settlement Finality Directive (Directive 98/26/
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