SEPA NATIONAL STEERING COMMITTEE

The SEPA Steering Committee is the body in Cyprus, which is repsonsible for the coordination of the efforts to migrate to SEPA.  It can be contacted via the e-mail address: paymentsystems@centralbank.gov.cy.  It is comprised of the representatives of the banking sector, the public authorities and all the other interested stakeholders, e.g. consumers and enterprises.

Introduction

On 1 January, 1999, Economic & Monetary Union and the euro were introduced.  The introductions of the single currency created the need for a euro area with integrated infrastructure.  The European Banking Industry recognised this need and initiated the establishment of a Single Euro Payments Area (SEPA).

In June, 2002, the European Banking Industry set up the European Payment Council (EPC) to guide and implement the SEPA project by 2010.  The Eurosystem and the European Central Bank support the SEPA project and will continue to provide guidance to the banking sector in order to obtain an infrastucture that is in the best interest of Europe.

What is SEPA

SEPA is an area in which consumers, companies and other economic actors will be able to make and receive payments in euro, whether between or within national boundaries under the same basic conditions, rights and obligations, regardless of their location.

For more information please refer to the leaflet and the detailed brochure of the European Central Bank The Single Euro Payments Area (SEPA).

Timeplan

a) As of January 2008, banks should offer new pan-European payment instruments in the euro area which will initially operate alongside national instruments and which can be used for both cross-border and national transactions.

b) Through market-driven migration, these new payment instruments are to account for a "critical mass" of transactions by the end of 2010, at which point the integration of the European payment landscape would have passed the point of no return.  The long-term goal of SEPA is the discontinuation of national instruments and procedures.

c) The central banks in the Eurosystem work to promote the SEPA concept and actively support the banking industry's endeavours in their political as "catalyst" for change.

d) Public authorities as heavy users of payment instruments should play an important role in the success of SEPA by being early adopters of SEPA instruments in all countries.

Migration Plan

The preparations and planning of the Cypriot Banking Community for the migratin to SEPA are presented in the documents prepared by the banking sector with the involvement of the interested parties attached below:

a) Cyprus SEPA Migration Plan and

b) The Addendum to the Migration Plan

Regulatory framework

The Directive 2007/64/EC of the European Parliament and of the Council on payment services in the internal market, establishes a harmonised legal framework for payment services at Community level.

The Regulation (EC) No 2560/2001 on cross-border payments in euro which defines that the fees charged on domestic and cross-border payments up to €50.000 should be the same.

Further details on SEPA may be found on the following websites:

European Payments Council (EPC)

European Commission, DG Interal Market

Euro Banking Association (EBA)

ISO 20022

EuroCommerce

Websites of commercial banks also offer information on SEPA and SEPA products.