1. Scope. 2. Conditions

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1 Recommendation regarding on the one hand information to customers pursuant to the law (1999:268) on credit transfers (payments) to and from other states within the EEA and on the other hand the EC regulation of 19 December 2001 concerning cross-border payments in euro (2560/2001) 1. Scope The law applies to credit transfers (payments) from originators (remitters) in Sweden to beneficiaries within the European Union, Norway, Iceland and Liechtenstein (EEA state) or from remitters in the said states to beneficiaries in Sweden. The payment must be effected by a bank or other company, whose operations include acting as intermediary for cross-border payments by transferring the amount to a bank or another company where the beneficiary is a customer. The payment must be expressed in a currency of one of the said countries or in EUR and for a maximum amount corresponding to EUR Remitters and beneficiaries may comprise both natural persons and legal entities. Payments in euro and Swedish kronor within the EU are also covered by the EC regulation on cross-border payments in euro (no. 2560/2001). According to the EC treaty, a regulation is generally applicable and binding in its totality and thus has a direct effect. It therefore applies as law in Sweden and all other EU member states. The application of the regulation concerning Swedish kronor is prescribed in the law (2002:598) on charges for certain cross-border payments. From 1 July 2003, for cross-border payments within the EU, for amounts up to EUR , the charges must be the same as the same bank charges for equivalent domestic payments. For payments in Swedish kronor, the same principle is applied for amounts up to SEK Conditions The obligations of the banks do not apply if the remitter has given the bank erroneous or incomplete instructions for example about beneficiary, bank affiliation or account number and any other information required for executing a payment. Furthermore, if the amount has not been paid in cash by the remitter, he/she is obliged to keep sufficient funds available on the account from which the payment is to be made at the time agreed. For payments that are to be executed on a pre-determined date the instructions must have reached the bank within the time limit stipulated in the bank s prevailing regulations. If the customer has stated a day for the payment that is not a banking day, the bank is to effect the payment on the next following banking day.

2 3. Time allowed for payments pursuant to the law on payment transfers Unless otherwise agreed, the remitter s bank is obliged to have placed the payment amount at the disposal of the beneficiary s bank by the end of the fifth banking day after the day that the remitter complied with the conditions set for execution of a payment in accordance with section 2 above. If the remitter has indicated a day which is not a banking day for the execution of the payment, the next following banking day will apply instead. The beneficiary s bank is obliged to credit the beneficiary s account not later than the banking day after the day that the amount was transferred to the beneficiary s bank, unless a different time has been agreed. The time limit indicated above for a payment is not applicable in the case of the bank taking action on the basis of the law on money laundering. 4. Costs for money transfers Costs for money transfers are charged in accordance with the bank s list of conditions valid at any time. A bank acting as intermediary for payments must not deduct costs from the payment amount, unless the remitter has specified that costs are to be wholly or partly borne by the beneficiary. Conversion to another currency is to be made at the spot selling rate applied by the bank at the time of remitting the payment abroad. For cross-border payments received the conversion of the foreign currency amount into Swedish kronor is to be made at the spot buying rate applied by the bank at the time of processing the payment. As stated in section 1 above, charges for cross-border payments in euro and Swedish kronor within the EU covered by the EC regulations, shall be the same as the same bank charges for equivalent domestic payments. Customers wishing to make a cross-border payment normally have three alternatives concerning the charges for such payment. The remitter may choose that the charges be shared with the beneficiary, in which case the remitter pays the charges of the remitting bank The beneficiary in turn pays the price charged by the beneficiary bank. to pay charges which cover both the remitting and the beneficiary bank s costs. In this case, the beneficiary does not have to bear any costs related to the payment. that the beneficiary bears all costs. Payments covered by the EC regulation are subject to the requirement that the price of a crossborder payment must be the same as that charged for an equivalent domestic payment. If the pricing stipulated by the EC regulation is to be applied, in practice only the first option is covered since the other two options are currently not available to the customer.

3 If the customer does not provide information about the beneficiary s account number in IBAN format (International Bank Account Number) and the bank s address in the form of a BIC (Bank Identifier Code), article 5.2 of the regulation states that the financial institution may make an extra charge. Thus in order for the charges according to the EC regulation to apply, the customer must also always state the correct IBAN and BIC. 5. The bank s obligation to supply information Information in connection with payment orders The bank is obliged to inform customers about the conditions for a payment. The information must be supplied in writing or electronically and comprise the following information Time for execution of payment, How the total price of the payment is calculated, The day that the bank will debit the remitter s account and the day that the beneficiary s account will be credited, Any exchange rates to be used, The legal jurisdiction and the bank s obligation to pay compensation when a payment has not been executed, and The opportunity to have claims and applications for compensation tried when a payment order is carried out erroneously. Advance information concerning charges pursuant to the EC regulation According to article 4.1, all institutions must provide their customers with written, readily comprehensible prior information concerning charges to be levied for cross-border payments and also for payments effected within Sweden. Where appropriate, the same information shall also be provided electronically. Article 4.3a states that institutions shall also provide prior information about the exchange charges they propose to apply. Information about executed payments A bank that has executed a payment order or received one must supply clear information about the payment to both the remitter and the beneficiary. A bank that has executed a payment order must supply information enabling the remitter to identify the payment, the amount that the payment referred to, and all costs for the payment (such as fees for currency exchange, if any) as well as the day that the bank has debited the remitter s account. A bank that has received a payment must give information enabling the beneficiary to identify the payment, the amount that the payment referred to, and all the costs for the payment (such as fees for currency exchange, if any) as well as the day that the bank has credited the beneficiary s account.

4 The beneficiary s bank is obliged to inform the beneficiary if the remitter has specified that the costs are to be wholly or partly borne by the beneficiary. A bank that is involved in a foreign exchange transaction must provide information about the rates applied pursuant to section 4 above. General information under the EC regulation Article 5.3 states that institutions from 1 July 2003 must indicate on each customer s account statement, or in an annex to this, the customer s IBAN number and the institution s BIC. However with regard to the Swedish decision to extend the application of the regulation to include Swedish kronor - the scope of article 5.3 is not completely clear from the regulation itself and statements by the EC Commission in connection with this, including the EC Commission s notice on the practical implementation of article 9 in the regulation. A reasonable interpretation of the article in question would be that not all accounts need to be provided with information concerning IBAN and BIC only those accounts from/to which a cross-border payment normally can be effected or received. It should also be taken into account that stating the IBAN and BIC for accounts which are not normally used for this type of payment may lead to some confusion for customers. Nor is it possible to deduce from the EC regulation the extent to which information about IBAN and BIC should also be indicated on account statements in the internet channel or via other distribution channels. 6. The Bank s obligation to pay compensation Complaints and claims If the remitter or the beneficiary considers that a payment has been executed erroneously or that costs have been debited erroneously, an application, in verbal or written form, for compensation for the payment executed erroneously, shall be addressed to the bank entrusted with the order. The remitter and the beneficiary have a right to receive information that their application for compensation can be considered by the bank branch concerned or by the bank s complaints manager. If the remitter s or the beneficiary s application for compensation is not approved by the bank, information should be supplied about the opportunity to have the case tried by a public court and that a customer who is a private consumer has the right to have the case tried by the National Board for Consumer Complaints. Late payments If the bank executing a payment to a beneficiary in another EEA state has not transferred the amount to the beneficiary s bank within the time limit stated in section 3 above, the remitter s bank is obliged to pay compensation in the form of interest on the amount in accordance with Section 6 of the Interest Act (1975:635) as from the day that the amount should have been transferred at the latest, up to the date that the transfer was actually made. The same applies to remitters that have engaged a bank in another EEA state than Sweden, in which case interest is payable at the rate of interest applied in that state for this purpose. Compensation is not payable when the delay is attributable to the remitter.

5 If the beneficiary s bank has not made the amount available to the beneficiary within the time period stated in section 3 above, the bank engaged by the beneficiary is obliged to compensate the beneficiary. If the beneficiary s bank operates in Sweden, compensation is paid in the form of interest on the amount in accordance with Section 6 of the Interest Act (1975:635) as from the day the amount should have been available to the beneficiary up to the date it was actually available. If the beneficiary s bank is situated in another EEA state, interest shall be payable at the rate applied in that state for this purpose. Compensation is not payable when the delay is attributable to the beneficiary. Non-execution of payment If the amount has not been transferred to the beneficiary s bank, the bank engaged by the remitter must repay the amount in question, however not more than an amount corresponding to EUR , and, if the bank concerned operates in Sweden, also pay compensation both in the form of interest on the amount in accordance with Section 6 of the Interest Act (1975:635) as from the day that the remitter gave payment instructions to the bank up to the day when repayment is made, and also an amount corresponding to the costs that the remitter has incurred for the payment. For remitters that have engaged a bank in another EEA state, interest is payable at the rate applied in that state for this purpose. Compensation must be paid no later than 14 banking days after the remitter has presented his claim. If the reason for the amount not having been transferred to the beneficiary s bank is due to erroneous or incomplete instructions from the remitter, the remitter s bank must take the measures that can reasonably be required for repayment of the amount. The banks concerned are entitled to make deductions for costs caused by the repayment. Erroneously deducted costs If the bank that the remitter has engaged or an intermediary bank has made a deduction for costs in contravention of the remitter s instructions pursuant to section 4 above, the remitter s bank must refund the deducted amount to the beneficiary or, if the remitter so demands, to the remitter. If the beneficiary s bank has made a deduction for costs in contravention of the remitter s instructions in accordance with what has been stated in section 4 above, the beneficiary s bank is obliged to repay the deducted amount to the beneficiary.