1. The Commission may authorise any Member State to conclude agreements, under national arrangements, with a country or territory which does not form part of the territory of the Community as determined in accordance with Article 299 of the Treaty, which contain derogations from this Regulation, in order to allow for transfers of funds between that country or territory and the Member State concerned to be treated as transfers of funds within that Member State.
Such agreements may be authorised only if:
(a) the country or territory concerned shares a monetary union with the Member State concerned, forms part of the currency area of that Member State or has signed a Monetary Convention with the European Community represented by a Member State;
(b) payment service providers in the country or territory concerned participate directly or indirectly in payment and settlement systems in that Member State;
and
(c) the country or territory concerned requires payment service providers under