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Wallis and Futuna Banking Regime Update: EU Approves Agreements for Financial Transactions

The European Commission has made a significant update to its regulations on banking in Wallis and Futuna, allowing for financial transactions between France and the two Pacific islands to be treated as domestic transactions.

Update to EU Regulation (EC) No 1781/2006

According to a recent commission decision, transfers of funds between France and Wallis and Futuna will be considered as domestic transactions under EU Regulation (EC) No 1781/2006. This means that payment service providers in Wallis and Futuna will be subject to the same rules as those established under this regulation.

Harmonization of Financial Regulations

The update is part of a broader effort by the Commission to harmonize financial regulations across member states and their overseas territories. In order for an agreement to be approved, three conditions must be met:

• The country or territory concerned must share a monetary union with the member state concerned.
• The country or territory concerned must participate directly or indirectly in payment and settlement systems in that member state.
• Payment service providers under the jurisdiction of the country or territory concerned must apply the same rules as those established under this regulation.

Approval Process

The commission decision was made in accordance with Article 23(2) of EU Regulation (EC) No 1781/2006. This follows a request from France to allow for transfers of funds between France and Wallis and Futuna to be treated as domestic transactions, which was approved by the Commission last year.

Expected Impact

The updated regulations are expected to facilitate financial transactions between France and Wallis and Futuna, making it easier for businesses and individuals to conduct cross-border transactions.