PAYMENT SYSTEMS: SUBSIDIARY LEGISLATION

PAYMENT SYSTEMS: SUBSIDIARY LEGISLATION

PAYMENT SYSTEMS (E-MONEY) REGULATIONS

ARRANGEMENT OF REGULATIONS

    REGULATION

PART I
PRELIMINARY

    1.    Citation

    2.    Interpretation

PART II
OBJECTIVE AND APPLICATION

    3.    Objective

    4.    Application

PART III
ROLE OF E-MONEY SERVICE PROVIDERS

    5.    Provision of e-money services

    6.    Capital requirements

PART IV
PROTECTION OF CUSTOMER FUNDS

    7.    Management and operation of trust accounts

    8.    Use of interest earned in trust accounts

    9.    Treatment of dormant e-money accounts

    10.    Sequestration of total value in dormant accounts and procedure for reimbursements

    11.    Restriction against creditor claims, garnishee orders, seizures and attachments

PART V
TECHNICAL REQUIREMENTS

    12.    Minimum standards on security, messaging and data protection

    13.    Interoperability of e-money services

    14.    Risk management, disaster recovery and business continuity

    15.    Requirement for information systems audit

PART VI
OPERATIONAL REQUIREMENTS

    16.    Transaction and user records

    17.    Transaction processing

    18.    Transaction limits

    19.    Notification of significant changes to the e-money service

PART VII
AGENTS

    20.    Agent recruitment and registration

    21.    Agent contract and functions

    22.    Training and supervision of agents

PART VIII
OVERSIGHT BY THE RESERVE BANK OF MALAWI

    23.    Submission of data and information to the Reserve Bank

PART IX
CONSUMER PROTECTION AND DISPUTE RESOLUTION

    24.    Requirements on consumer protection

    25.    Dispute resolution mechanisms

PART X
ENFORCEMENT

    26.    Monetary Penalties

    27.    Administrative Penalties

PART XI
CESSATION OF E-MONEY SERVICE

    28.    Prior Notification before cessation of services

        FIRST SCHEDULE

        SECOND SCHEDULE

G.N. 13/2019

PAYMENT SYSTEMS (E-MONEY) REGULATIONS

under s. 43

PART I
PRELIMINARY

1.    Citation

    These Regulations may be cited as the Payment Systems (E-money) Regulations.

2.    Interpretation

    In these Regulations, unless the context otherwise requires—

    “agent” means an entity or person that has been contracted by an e-money service provider to carry out or provide specified e-money services on behalf of that entity in a manner specified in these Regulations;

    “bank” has the meaning ascribed to that term in the Banking Act;

    “banking business” means the business of receiving deposits or deposit substitutes from the public that are payable, with or without interest, on demand, or after the expiration of a stated period and are transferable by cheque or other means;

    “cash-in” means accepting of cash and performing the necessary steps to initiate the crediting of that monetary value to the customer’s e-money account;

    “cash-out” means giving out cash and performing the necessary steps to initiate the debiting of that monetary value from the customer’s e-money account;

    “customer funds” means sums of money that have been received by an e-money service provider in exchange for electronic money that has been issued;

    “deposit” shall have the meaning ascribed to that term in the Banking Act and the Microfinance Act;

    “dormant account” means an e-money account, in respect of which the account holder, has not for twelve consecutive months after the last transaction in his account, conducted any transactions thereof, or corresponded with the e-money service provider concerning the account;

    “e-money” means monetary value as represented by a claim on its issuer that is—

    (a)    electronically stored in an instrument or device including cash cards, electronic wallets (e-wallets or mobile wallets) accessible via a mobile phone or another access device such as point of sale devices, stored value card, prepaid card, and other similar instrument or device;

    (b)    issued against receipt of funds of an amount not lesser in value than the monetary value issued;

    (c)    accepted as a means of payment by persons or entities other than the issuer;

    (d)    withdrawable in cash or cash equivalent; and

    (e)    issued in accordance with these Regulations;

    “e-money services” means services provided by an e-money service provider to support the utility of e-money for a consumer which include channels such as mobile payments and services such as cash-in, cash-out, person-to-person, business to person, government to person transactions;

    “e-money service provider” means an entity, whether bank or non-bank, that has been licenced or authorized by the Reserve Bank to issue e-money and provide e-money services;

    “Financial Intelligence Authority” means the Financial Intelligence Authority established under the Financial Crimes Act;

    “information systems audit” or “information technology audit” means an examination of the management and controls within an information technology (IT) infrastructure and includes both applications and general computer reviews;

    “Know Your Customer (KYC)” means a process of performing activities related to customer due diligence in order to identify customers and ascertain relevant information pertinent to doing financial business with them;

    “mobile network operator” means a telecommunications service provider that provides wireless voice and data communication as licensed by the Malawi Communications Regulatory Authority or any other body with such authority in Malawi;

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