Stricter Regulatory Requirements for Payment Processors in Belgium

Introduction

Belgium’s financial regulator, the National Bank of Belgium (NBB), has introduced new regulatory requirements for systemically important payment transaction processors operating in the country. These rules aim to ensure the stability and continuity of payments in Belgium.

Key Regulatory Requirements

• Risk Management: Systemically important payment transaction processors must identify possible sources of operational risk, implement a risk management policy and procedures, set up a business continuity plan, and ensure the confidentiality and integrity of information.
• Verification by Payment Scheme Operators: Payment scheme operators in Belgium must verify that systemically important processors they work with comply with these requirements. They are required to file information necessary for the NBB to identify processors acting in payment transactions and assess their systemic importance.
• Outsourcing of Significant Operational Tasks: The new regulations introduce stricter rules on outsourcing significant operational tasks related to the processing of payment transactions. Such outsourcing is subject to prior NBB authorization.

Penalties for Non-Compliance

Systemically important processors that fail to comply with the prudential rules may face penalties from the NBB, including:

• Daily Penalty: A penalty not exceeding EUR 50,000 per day.
• Total Penalty: A maximum total penalty of EUR 2,500,000.
• Administrative Fines: Administrative fines ranging from EUR 25,000 to EUR 25,000,000 in case of breach of some provisions of the Act.

Conclusion

The new regulatory requirements are aimed at ensuring the stability and continuity of payments in Belgium. Systemically important payment transaction processors must now adhere to stricter rules and regulations, which will help to prevent disruptions to payment services in the country.