PAYMENT SYSTEMS

CHAPTER 74:01
PAYMENT SYSTEMS

ARRANGEMENT OF SECTIONS

    SECTION

PART I
PRELIMINARY

    1.    Short title

    2.    Interpretation

    3.    Objectives

PART II
POWERS AND FUNCTIONS OF THE RESERVE BANK

    4.    Powers, duties and functions of the Reserve Bank

    5.    Delegation of powers

    6.    Reserve Bank not precluded from exercising and withdrawing delegated powers

    7.    Cooperation with other regulatory authorities

    8.    Directives, guidelines, circulars and directions

    9.    Breaches of directives, etc.

    10.    Directions for inadequate control of risks

    11.    Court order for compelling compliance with a direction

PART III
REGULATION AND OVERSIGHT BY THE RESERVE BANK

    12.    Restrictions on operating a payment system etc. or services

    13.    Application for licences or authorization

    14.    Licence and authorization requirements

    15.    Revocation or suspension of authorization or a licence

    16.    Responsibilities of system operators

    17.    Actions requiring prior approval of the Reserve Bank

    18.    Investigative powers of the Reserve Bank

    19.    Requirements for participation in, and operation of a settlement system

PART IV
PROTECTION OF SETTLEMENT SYSTEMS

    20.    Discharge of settlement obligations

    21.    Finality and irrevocability of settlements

    22.    Winding-up of a system participant on application by a person other than the Reserve Bank

    23.    Winding-up of a system participant by the Registrar

    24.    Voluntary winding-up of a system participant

    25.    Irrevocability and finality of settlements prior to lodging of winding-up order

    26.    Cessation of participation in clearing and payment systems

    27.    Passing of settlement transactions subsequent to winding-up proceedings

    28.    Restrictions against attachments, garnishee proceedings or seizures

PART V
NETTING AND FINANCIAL COLLATERAL ARRANGEMENTS

    29.    Obligations under netting agreements, arrangements and rules

    30.    Recognition of financial collateral arrangements

    31.    Utilization of collateral

PART VI
TRUNCATION, IMAGING AND ELECTRONIC ENTRIES

    32.    Truncation and imaging

    33.    Admissibility of photographic images of payment instruments and electronic entries

    34.    Right of a bank to request original payment instrument or image thereof

PART VII
DISPUTE RESOLUTION

    35.    Dispute resolution

PART VIII
MISCELLANEOUS

    36.    Access to information

    37.    Confidentiality of information

    38.    Use of confidential information for personal gain

    39.    Conditions for disclosure of information

    40.    Indemnity of officers and other officials

    41.    Retention of records

    42.    Penalties

    43.    Regulations

PART IX
TRANSITIONAL ARRANGEMENTS

    44.    Transitional arrangements

15 of 2016
G.N. 35/2017

    An Act to provide for the operation, regulation and supervision of payment, clearing and settlement systems in Malawi, and matters connected therewith and incidental thereto

PART I
PRELIMINARY

1.    Short title

    This Act may be cited as the Payment Systems Act.

2.    Interpretation

    In this Act, unless the context otherwise requires—

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

    “business day” means any day other than a Saturday, Sunday or public holiday;

    “card” means any card including an Auto-Teller Machine card, point of sale card, debit card, credit card or stored value card, used by a consumer to effect an electronic funds transfer, electronic payments or withdrawals;

    “cheque” has the meaning ascribed to that term in the Bills of Exchange Act;

    “circular” means a written notice on a new policy or change of policy that relates to clearing and settlement systems operators, participants and includes instruments associated with such systems;

    “clearing” means the process of transmitting, reconciling and confirming transfer instructions regarding funds, securities or other financial instruments prior to settlement, including the netting of instructions and the establishment of final positions prior to settlement;

    “clearing system” means a system that facilitates the presentment and exchange of transfer instructions regarding funds, securities or other financial instruments prior to settlement;

    “direction” means a specific mandatory instruction or set of instructions to do or not to do certain acts or things addressed to specific payment, clearing and settlement systems and operators, participants and instruments associated with such systems;

    “directive” means a general mandatory instruction or set of instructions that apply or relate to all or specific payments, clearing and settlement systems or operators, participants and instruments associated with such systems;

    “electronic funds transfer” means the transfer of funds through an electronic mechanism;

    “finality” means that a settlement or transfer is unconditional, enforceable and irrevocable;

    “financial collateral arrangement” means an arrangement under which a participant provides acceptable collateral by way of securities in favour of, or to another participant, and where the full ownership of the collateral remains with the collateral provider when the security right is established whether or not the arrangement is covered by a master agreement, standard form contract, or any other general terms and conditions;

    “financial institution” has the meaning ascribed to the term in the Financial Service…