Draft law amending the Credit and Electronic Money Institutions Act and the Payment and Settlement Systems Act (634 SE) – first reading
Session: 15th Riigikogu, 5th session, plenary sitting
Date: 2025-05-20 13:30
Participating Politicians:
Total Speeches: 20
Membership: 15
Agenda Duration: 16m
AI Summaries: 20/20 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The topic of the agenda item was the first reading of Bill 634 amending the Act on Payment Institutions and E-Money Institutions and the Act on Payment and Settlement Systems. Finance Minister Jürgen Ligi introduced the bill, which is based on the European Union's instant payment regulation. The main purpose of the bill is to expand the rights of payment institutions and e-money institutions, allowing them to obtain direct access to instant payment settlement systems without having to use credit institutions (banks) as intermediaries. This change should promote the availability of instant payments in euros (within 10 seconds) and increase competition and innovation in the payment services market. Ligi emphasized that obtaining direct access requires a permit from the Financial Supervisory Authority in order to mitigate the risks of money laundering and fraud. The rapporteur of the Finance Committee, Mart Võrklaev, confirmed that the committee supported the further processing of the bill and noted that the deadline for transposing the directive is April 9, 2025.
Decisions Made 2
Bill 634 has concluded its first reading.
The deadline for submitting amendments was set for June 3, 2024, at 5:15 PM.
Esimees Lauri Hussar
AI Summary
As part of the Riigikogu's next agenda item, Government-initiated Draft Bill 634 will be presented, spearheaded by Minister of Finance Jürgen Ligi. This bill proposes amendments to the Payment Institutions and E-money Institutions Acts, as well as the Payment and Settlement Systems Act.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi introduced a draft bill that amends the Payment Institutions and E-money Institutions Act and the Payment and Settlement Systems Act, in order to grant them direct access to instant payment settlement systems, thereby enabling 10-second payments in euros for non-banks as well, and increasing competition and innovation; however, this requires a license from the Financial Supervisory Authority and compliance with the relevant requirements.
Esimees Lauri Hussar
AI Summary
The Chairman thanks everyone, invites questions, and asks Peeter Ernits to take the floor.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits is asking the minister what the nature of instant payments—or 10-second payments—is and why its implementation has stalled, and he is requesting a simple, plain-language overview of the comparison table of European Union directives.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that the rights of non-credit institutions to process payments and handle money directly will be slightly expanded. However, this expansion carries risks of fraud, tax evasion, and money laundering, necessitating strict oversight, despite the fact that these institutions are already present in the market.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Jüri Jaanson to the stage.
Jüri Jaanson
Profiling Eesti Reformierakonna fraktsioonAI Summary
Jüri Jaanson emphasizes that the true impact of the bill must be clarified: which settlement stakeholders will benefit from the additional option of instant payments, what its cost will be, and what the technical and security requirements are for IT developments related to the European directive.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the service will become cheaper for clients and competition will likely intensify. However, when dealing with other people's money, the movement of funds must be kept under a certain degree of control to prevent money laundering and crime, and supervision will remain in place. Furthermore, institutions have their own specific requirements and responsibilities, and not everyone will be able to hold these rights.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks Tanel Kiik to come and speak.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik inquired about the differences between e-money institutions and conventional payment institutions, and whether the expansion poses risks to the traceability of the origin of funds and their movement schemes.
Rahandusminister Jürgen Ligi
AI Summary
According to Finance Minister Jürgen Ligi, credit institutions differ from payment institutions primarily in that credit institutions deposit large sums and keep them in their possession, whereas payment institutions only make transfers. He added that although regulations and supervision mitigate risks and crime, bank intermediation is complex, and if they do not hold deposits and strict requirements are imposed on them, the systemic risk is small, which is why the market is being liberalized.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls upon Aivar Kokk to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk thanks the director and the minister, and asks which entity serves as the payment institution and which serves as the e-money institution in Estonia, requesting that they propose some specific names.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi referred to the explanatory memorandum, promised to answer that question during the second reading, and listed several payment institutions, including Wise (formerly TransferWise), though he couldn't recall all the names himself.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offers his heartfelt thanks and presents a request to Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asks whether the banks supported the draft bill, or if it creates serious competition and a burden for them, and whether they must now offer instant payment services to everyone.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that although payment institutions can operate independently of banks’ funding, we must not undermine the viability of banks, because they hold deposits and lend to our economy. He added that he is checking what the Banking Association has said about this and what their position is regarding the entire procedure.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the minister, announces that there are no questions, and asks Finance Committee member Mart Võrklaev to present the discussion held in the Riigikogu Finance Committee.
Mart Võrklaev
Profiling Eesti Reformierakonna fraktsioonAI Summary
Mart Võrklaev said that the Finance Committee is discussing draft legislation which grants payment institutions and e-money institutions direct access to the central bank's payment systems, thereby increasing competition and innovation by allowing payments to be made without the mediation of banks; this concerns both a directive and a regulation, and the deadline for entry into force was April 9, 2025; furthermore, the committee selected me as the committee's rapporteur, placed the draft legislation on the agenda on May 20, and set the deadline for amendments at ten working days.
Esimees Lauri Hussar
AI Summary
The Chairman thanked the colleagues, announced that there were no questions and the discussions were concluded; the leading committee's proposal is to conclude the first reading of Draft Bill 634, and the deadline for submitting amendments is June 3rd of the current year at 17:15.