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SEPA migration end-dates extended for Malta

The Single Euro Payments Area (SEPA) migration end-date Regulation (No 260/2012) had established 1 February 2014 as the date when national credit transfer and direct debit schemes in the Euro Area had to cease operation and be replaced by the new SEPA Credit Transfers (SCTs) and SEPA Direct Debits (SDDs) schemes. 

Due to the low SEPA migration pace for SCTs and SDDs registered in a number of EU countries till the end of 2013, the European Parliament, the European Commission and the Council of Ministers decided, in February 2014, to extend the migration period by another six months, so as to ensure full compliance and minimise the potential risk of market disruptions. 

In view of this end-date extension, the Central Bank of Malta, as the appointed competent authority for SEPA in terms of the Regulation, has decided, in close collaboration with the Malta Bankers' Association, to extend, locally, the SEPA migration end-date for SCTs by three months until 1 May 2014 and by six months for SDDs until 1 August 2014. These extended periods are being granted in view of the on-going progress that is being registered, whereby national and cross-border SCT migration increased from 42% compliance in December 2013 to 80% in February, while SDD migration increased from 46% compliance in December 2013 to 75% in February. 

The Central Bank of Malta and the Malta Bankers' Association urge payment service users, such as corporates using payroll software for credit transfers and service providers using direct debits, to maintain the momentum towards achieving 100% SEPA compliance in the shortest time possible within the newly established timeframes, after which national non-SEPA compliant direct credit and direct debit transactions will no longer be accepted for processing by payment service providers.